Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Green Banking
• Community Development
• Corporate Governance

Environmental Achievements

• Disbursed Tk. 30 million for installation of 1500 Solar Panels, benefiting 6,500 households.
• 40% electricity savings in corporate office and major branches by using daylight.
• 85 borrowers financed for ETP installation (Tk. 12,526.60 million exposure).
• 21 out of 32 brick manufacturing borrowers fully complied with environment-friendly technology.

Social Achievements

• Tk. 132.97 million spent on CSR activities (91.48% higher than previous year).
• 621 students received higher studies scholarships (Tk. 24.97 million).
• 80,876 farmers and rural people benefited financially through agricultural/rural credit.
• 3,500 rural students received ICT training.
• 118,877 households received remittances (Tk. 2928.25 million) through MFI networks.
• 1,004 children received eye-sight support.
• 601,352 unbanked villagers benefited from EBEK project.

Governance Achievements

• Complied with Bangladesh Bank and BSEC guidelines on board of directors.
• Established Risk Management Committee, Audit Committee, Executive Committee.
• Implemented Basel II capital accord requirements.
• Maintained 11.05% capital adequacy ratio.

Climate Goals & Targets

Environmental Challenges

• Global and national economic slowdown due to political uncertainty.
• Need to further enhance financial inclusion and green banking initiatives.

Mitigation Strategies

• Continued focus on sustainable balanced growth.
• Implementation of Agent Banking and Mobile Financial Services ('Hello').
• Investment in green finance projects and initiatives.

Supply Chain Management

Responsible Procurement

• Compliance with government rules and regulations.
• No collaboration with suppliers employing child labor, creating environmental hazards, or violating human rights.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3/G3.1

Sustainable Products & Innovation

• Mobile Financial Services ('Hello')
• Agent Banking
• Smart Junior Saver

Awards & Recognition

• ICMAB Best Corporate Award (2012, 2013)
• ICAB Best Published Accounts and Reports (2011)
• ICAB Best Presented Annual Reports (2012)
• SAARC Anniversary Award for Corporate Governance (2013)
• NCSR Sustainability Reporting Awards (2012)
• Bangladesh Bank recognition for Green Banking (2012, 2013)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Disbursed Tk. 5 million for the installation of an Effluent Treatment Plant (ETP) to reduce untreated factory wastewater discharge.
• Financed Tk. 50 million for Automatic Bricks & Ceramics (Pvt.) Ltd. for an environmentally friendly and energy-efficient brick manufacturing project.
• Published an advertisement in the Daily Star on World Environment Day.
• Participated in the Green Bankers’ Conference 2014 and Green Finance Conference 2014.
• One official received GRI Certified Training.
• Provided two training programs on Green Banking, with 72 staff participating.
• Cards Department organized 11 capacity-building training programs on Green Banking.
• Published a Sustainability Report (following GRI G.3 guidelines).

Social Achievements

• Provided financial assistance for ophthalmological operations, benefiting 543 children.
• Provided 25,008 man-hours of training for human capital development.
• Disbursed Tk. 1,409.91 million in agricultural/rural credit.
• Facilitated remittance of Tk. 1,700.34 million through MFI networks.
• Provided educational support for students amounting to Tk. 7.39 million.
• Expensed Tk. 142.67 million for CSR initiatives in education, health, disaster management, environment, sports, art & culture, and other areas.

Governance Achievements

• Incorporated environmental and climate change risk into the existing credit risk methodology using environmental due diligence (EDD) checklists.
• Bangladesh Bank recognized Bank Asia as one of the Top 10 Private Commercial Banks for contribution to Green Banking activities (two consecutive times).

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G.3

Environmental Metrics

ESG Focus Areas

• Good governance and commitment to stakeholders
• Environmental sustainability and green banking
• Economic sustainability
• Sustainable human capital
• Building the community

Environmental Achievements

• 10,517,685 kwh electricity consumed; 50,382 liters of oil and 142,509 m3 of CNG fuel consumed; 6,873,861 km of local business travel; 39,982 reams of paper used; Net savings of BDT 8.76 million from green banking initiatives (e-statements, SMS banking, etc.)

Social Achievements

• 11,146 farmers and rural people benefitted financially through agricultural/rural credit; 615 students received support for education; 1,161,980 unbanked villagers received banking services through EBEK; 170,476 e-statements delivered; 22,061 man-hours of training; 432,110 households received remittances; Tk. 26.60 million invested in education (57.64% of total community investment).

Governance Achievements

• Secured 1st Runner up position in Private Sector Banks for Best Presented Annual Report Awards and SAARC Anniversary Award for Corporate Governance Disclosures 2014; Awarded second prize for Best Presented Annual Reports 2014; Achieved Best Sustainability Reporting Award 2015; Achieved Award of Excellence on Banking Fair Bangladesh 2015.

Climate Goals & Targets

Environmental Challenges

• A vast majority of Bangladeshi lives outside the full formal banking network, deprived from essential financial services and subjected to unfair money lending practices; uneven coverage of financial facilities due to poor infrastructure, illiteracy, lack of awareness, and high banking costs.

Mitigation Strategies

• Implemented Agent Banking in all districts of Bangladesh with 333 Agent outlets in 42 districts; Introduced MasterCard Smart Card for beneficiaries of ICVGD.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI-G4

Awards & Recognition

• 1st Runner up position in Private Sector Banks for Best Presented Annual Report Awards and SAARC Anniversary Award for Corporate Governance Disclosures 2014
• Second prize for Best Presented Annual Reports 2014
• Best Sustainability Reporting Award 2015
• Award of Excellence on Banking Fair Bangladesh 2015

Environmental Metrics

ESG Focus Areas

• Chemical Pollution
• Financial Inclusion
• Green Banking
• Corporate Social Responsibility
• Human Capital Development
• Environmental Risk Management

Environmental Achievements

• Reduced energy consumption by more than 40% in corporate office using daylight.
• Saved Tk. 9.81 million by using E-Statement, SMS Banking, SMS Alert, Net Banking, E-Fund Transfer, Digital Attendance, E-Mail correspondence.
• Disbursed Tk. 402.79 million for green finance to Well Group and Tk. 2,944 million for Spectra Solar Park.
• Total disbursement in projects having ETP of Tk. 695.86 million. Total outstanding amount of different liquid waste management project was Tk. 1,017 million.

Social Achievements

• Reached 3.5 million unbanked people through Agent Banking.
• Disbursed Tk. 5,427 million agricultural credit to 57,870 rural farmers.
• Spent Tk. 282.83 million on CSR activities (education, health, disaster management, etc.).
• Provided 117,224 man-hours of training to 19,051 employees.
• Established a child day care center named “Pushpita”.

Governance Achievements

• Maintained CRAR of 17.16% (against regulatory requirement of 12.50%).
• Achieved Gold Rank in Asia Sustainability Reporting Rating 2020.
• Implemented robust risk management framework.
• Complied with all regulations; no penalties for non-compliance.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on business operations and customer loan repayment.
• Decline in global economy affecting export and import.
• Challenges in maintaining regulatory requirements amidst economic crisis.
• Chemical pollution due to rapid industrialization.

Mitigation Strategies

• Implemented business continuity plan during COVID-19.
• Disbursed stimulus package of Tk. 15,777 million.
• Focused on digitalization and innovative banking services.
• Increased awareness and capacity building among agents.
• Strengthened environmental risk management policies.

Supply Chain Management

Responsible Procurement

• Compliance with government rules and regulations
• No collaboration with suppliers employing child labor, creating environmental hazards, or violating human rights

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Sustainable Products & Innovation

• Green finance products
• Agent banking for financial inclusion
• Digital banking solutions

Awards & Recognition

• Gold Rank in Asia Sustainability Reporting Rating 2020

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Technological Innovation
• Building the Community
• Green Banking
• Human Capital Development
• Corporate Governance

Environmental Achievements

• Disbursed Tk. 1,505.42 million in Renewable Energy under Green Finance
• Disbursed Tk. 278.37 million in Liquid Waste Management (outstanding Tk. 7,164.05 million)
• Net savings of Tk. 9.95 million through various Green Banking initiatives
• Reduced energy consumption through daylight utilization and energy-efficient bulbs

Social Achievements

• Disbursed Tk. 22.30 million under Bank Asia Higher Studies Scholarship to 417 students
• Spent Tk. 247.45 million on CSR activities (Health: Tk. 104.70 million, Education: Tk. 42 million, Disaster Management: Tk. 48.85 million, others: Tk. 50.90 million)
• Provided 42,816 man-hours of training to 5,115 employees
• Expanded Agent Banking network to 4,898 outlets covering 64 districts, reaching 4.92 million unbanked people
• Launched Neelima, a platform for women entrepreneurs’ development

Governance Achievements

• Maintained a strong capital base with CRAR of 15.72%
• Achieved Gold Rank in Asia Sustainability Reporting Rating 2021
• Ranked among the Top 10 Banks in Sustainability Rating 2020 by Bangladesh Bank
• Established various committees (Executive Committee, Audit Committee, Risk Management Committee, etc.) to ensure effective governance

Climate Goals & Targets

Environmental Challenges

• Rising temperature and its impact on labor productivity and agricultural output
• Rising inflation
• Credit risk due to rising NPL levels
• Cybersecurity threats
• Exchange rate risk
• Competition in the banking industry

Mitigation Strategies

• Investment in sustainable green financing and energy conservation
• Risk-based capital adequacy management in line with Basel III
• Implementation of HCI for cybersecurity
• Environmental and Social Risk Management (ESRM) policy
• Diversification of loan portfolio and focus on SME segment

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Compliance with government rules and regulations
• No collaboration with suppliers employing child labor, creating environmental hazards, or violating human rights

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, cyclones, flooding

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 27001:2013

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

Bank Asia's initiatives in financial inclusion, CSR, green banking, and human capital development contribute to these SDGs.

Sustainable Products & Innovation

• Green Energy Loan
• Neelima platform for women entrepreneurs

Awards & Recognition

• Gold Rank in Asia Sustainability Reporting Rating 2021
• Ranked among Top 10 Banks in Sustainability Rating 2020 by Bangladesh Bank
• Honorable Mention in Bangladesh Innovation Award 2021

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Green Banking
• Corporate Social Responsibility
• Human Capital Development
• Governance

Environmental Achievements

• Saved Tk. 10.04 million through green banking initiatives (E-Statements, SMS Banking, etc.)
• Disbursed Tk. 2,027.30 million in Renewable Energy and Tk. 375.84 million in Energy & Resource Efficiency under Green Finance.
• Disbursed Tk. 237.06 million in Liquid Waste Management (outstanding Tk. 1,210.55 million).

Social Achievements

• Disbursed Tk. 4,663.61 million as Agriculture & Rural credit to 69,182 farmers.
• Provided 60,984 man-hours of training to 2,807 employees.
• Spent Tk. 237.48 million on CSR activities (Health, Education, Disaster Management, etc.).
• Expanded Agent Banking network to 5,414 outlets, serving 5.54 million customers.
• Launched Post Office Banking with 1,349 outlets and 209,382 accounts.

Governance Achievements

• Maintained CRAR at 17.70% (above regulatory requirement of 12.50%).
• Achieved Gold Rank in Asia Sustainability Reporting Rating 2022.
• Rated among Top 10 most Sustainable Banks by Bangladesh Bank for the 2nd consecutive year.
• Held 20 Board meetings, 44 Executive Committee meetings, and 8 Audit Committee meetings.

Climate Goals & Targets

Environmental Challenges

• Liquidity crunch in the banking industry.
• Economic crisis due to the Russia-Ukraine war.
• High inflation.
• Rising trend of NPLs.
• High competition.
• Depletion of Forex reserves.
• Air pollution

Mitigation Strategies

• Implemented risk mitigation measures (online communication, eKYC, etc.).
• Focused on asset quality and recovery of classified loans.
• Maintained adequate capital as per Basel III.
• Improved operational efficiency.
• Promoted financial inclusion.
• Implemented green banking initiatives.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Climate change related events (cyclone, drought)

Transition Risks

• Not disclosed

Opportunities

• Financing renewable energy projects

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action

Bank Asia's initiatives contribute to these goals through financial inclusion, green banking, and CSR activities.

Sustainable Products & Innovation

• Green Finance products
• Sustainable Linked Finance products
• OCAS-Diganta loan processing system

Awards & Recognition

• Gold Rank in Asia Sustainability Reporting Rating 2022
• Rated among Top 10 most Sustainable Banks by Bangladesh Bank

Environmental Metrics

ESG Focus Areas

• Sustainable Banking
• Financial Inclusion
• Community Engagement
• Green Finance
• Sustainable Finance

Environmental Achievements

• Disbursed Tk. 2,634.23 million for Green Finance (5.47% of target)
• Disbursed Tk. 50,537 million under Sustainable Finance (25.22% of target)
• Tk. 10.49 million Net profit from environmental savings
• Disbursed Tk. 679.84 million for Liquid waste management
• Implemented Document Management Solution (DMS) for paperless office

Social Achievements

• Spent Tk. 326.29 million on CSR activities
• Donated Tk. 200 million for Sheikh Fazilatunnessa Mujib Memorial KPJ Specialized Hospital
• Disbursed Tk. 26.51 million for MA Amiran Hospital
• Disbursed rural credit of Tk. 5,713 million to 77,553 farmers
• Donated Tk.10.75 Million to Prime Minister’s Education Assistance Trust
• Tk.1.88 million disbursed under Bank Asia Higher Studies Scholarship
• Served 6.79 million beneficiaries through Bank Asia’s Financial Inclusion Department
• 64% of Agent Banking customers are female

Governance Achievements

• Awarded Gold Award for Corporate Governance by SAFA
• Awarded 1st position under Corporate Governance Disclosures category by ICAB
• Maintained a strong Capital to Risk-Weighted Assets Ratio (CRAR) of 16.45%
• Successfully raised Tk. 3,340 million as Bank Asia 1st Perpetual Bond

Climate Goals & Targets

Environmental Challenges

• High inflationary pressure
• Exchange rate pressures
• Substantial erosion of foreign exchange reserves
• High Non-Performing Loan (NPL) in Banking sector
• Global economic downturn
• Foreign currency challenges
• Strict import restrictions
• Declining foreign exchange reserves
• High NPL ratio (6.70%)

Mitigation Strategies

• Strengthened loan monitoring and supervision mechanisms
• Accelerated loan recovery efforts
• Fortified capital base (CRAR of 16.45%)
• Judicious examination of market dynamics
• Proactive liquidity management
• Adherence to regulatory directives
• Increased provisions to mitigate potential future risks
• Implemented initiatives to increase remittance inflows
• Regular loan monitoring to prevent delinquencies
• Effective recovery efforts for rescheduled, stay-order, and written-off loans

Supply Chain Management

Responsible Procurement

• Sustainable procurement practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, IIRC

Certifications: ISO 27001-2 (ISMS), PCI DSS v4.0, ISO 22301 (BCMS)

Third-party Assurance: MABS & J Partners, CRAB, BSI, Suraiya Parveen & Associates, Z Halim & Associates

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 13 (Climate action)

Initiatives contribute to these goals through green financing, financial inclusion, and community development programs

Awards & Recognition

• Gold Award for Corporate Governance by SAFA
• 1st position under Corporate Governance Disclosures category by ICAB
• Silver Rank in the Asia Sustainability Reporting Rating (ASRRAT) 2023