The concept of green banking has been integral in LankaBangla, and goes hand in hand with our stance on sustainable business model. With the constant headway of our Green Banking Unit (GBU) [presently known as Sustainable Finance Unit(SFU)], we have been a successful team in green banking. Using smart innovative financing techniques and market development tools, we aim to stimulate investments in clean technologies and hence contribute to societal welfare. To seek increased deployment of clean energy and more efficient use of funds, we introduced Green Finance, initiated in-house management, created Climate Risk Fund, Green Marketing, and supported employee training.
As per the Bangladesh Bank Circular No. 04 on "Policy Guidelines for Green Banking", LankaBangla Finance has established "Green Banking Policy"/Environmental and Social Risk Management Policy (ESRM) which is approved by the Board. A separate Green Banking Unit (GBU) [presently known as Sustainable Finance Unit (SFU)] was required to be formed for designing, evaluating and administering activities related to green banking issues of the company. As per the set BB circulation, this unit will report to the high powered committee (Sustainable Finance Committee) from time to time. GBU/SFU will be under the supervision of Risk Management Division (RMD). GBU/SFU is comprised of the representatives from each relevant divisions. Followings are the GBU/SFU members who will work together for providing input, data and preparing relevant reports as per green banking policy guidelines and Bangladesh Bank requirements.
|Sustainable Finance Committee|
|SL||Designation||Position in the committee||CSR focused Group|
|01||Managing Director and CEO||As Chairman of SFC||-|
|02||Head of Operations Division||As Head of Credit Administration||-|
|03||Chief Risk Officer||As Head of Risk Management and ICC||Member of CSR focused group|
|04||Company Secretary & Head of Regulatory Affairs||As Member of CSR focused group||Member of CSR focused group|
|05||Head of Corporate Financial Services||As Head of Corporate Financing||-|
|06||Head of SME Financial Services||As Head of SME Financing||-|
|07||Head of Human Resource Division||As Head of Human Resource Division||Member of CSR focused group|
|08||Chief Credit Officer||As Head of CRM||-|
|09||Finance & Accounts||As Finance Controller||Member of CSR focused group|
|10||Head of GIS||As Head of Logistics and Support Services||Member of CSR focused group|
|11||Unit Head- Project Structured & Sustainability Finance||As Member Secretary and Head of PSSF||-|
|Sustainable Finance Unit (SFU)|
|1||Chief Credit Officer & Head of Sustainable Finance Unit (SFU)||As Head of Sustainable Finance Unit (SFU)|
|2||Unit Head of Application & Database Services, Information & Communication Technology (ICT)||As Representative from ICT|
|3||Head of Small Business, SME Financial Services (SME) Division||As Representative from SME|
|4||Head of Retail Credit, Credit Risk Management Division (CRM)||As Representative from CRM|
|5||Representative from Retail Financial Services Division||As Representative from Home Loan|
|6||Representative from Finance & Accounts Division||As Representative from Finance & Accounts|
|7||Representative from Human Resources Division (HR)||As Representative from HR|
|7||Representative from Small Business, SME Financial Services (SME) Division||As Representative from SME|
|9||Unit Head- Project Structured & Sustainability Finance||As Member Secretary of SFC and Head of PSSF|
|10||Representative from General Infrastructure & Services (GIS) Division||As Representative from GIS|
|11||As Focal Point Official||As Focal Point Official of SFU|
|12||Representative from Women Entrepreneur Cell, SME Division||As Representative from Women Entrepreneur Cell|
Green Banking Initiatives
In response to increasing awareness of climate change, and environmental degradation, urgent measures for sustainable development have been addressed by some of the stakeholders all over the world. Banking system holds a unique position in an economy that can affect production, business and other economic activities through their financing activities which would in turn contribute to economic development as well as protect environment/climate from pollution and degradation. Through green banking/sustainable financing/Green Financing , LankaBangla concentrates on financing commercially viable technologies that consume less fossil fuel and have lower impacts on the environment. Moreover, implementing green banking concept within the organization through efficiency in energy use, water consumption and waste reduction may significantly contribute towards controlling operating costs.
In line with the global development and response to the environmental degradation and as per instructions of Bangladesh Bank, LankaBangla Finance has already established its Green Banking Policy/Environmental and Social Risk Management Policy. A Green Banking Unit (GBU)/Sustainable Financing Unit (SFU) has been formed with the task of developing policies, planning and administering the green banking/Sustainable Financing/Green Financing initiatives of the company. All internal and external Green Banking/Sustainable Financing including Green Financing reporting is conducted through Sustainable Finance Unit. SFU periodically reports to Sustainable Finance Committee for overall progress of Green Banking/Sustainable Financing/Green Financing activities of LankaBangla and the Board is accordingly informed regarding aforementioned activities of LankaBangla.
The Company conforms to the instructions stipulated in the detailed guidelines on Environmental and Social Risk Management (ESRM) of Bangladesh Bank in consideration to the Green Banking policy/ESRM policy. Clear identification of the problems related to environmental risk is important for effective risk management as measures can be taken to address any environmental and social incidents. At LankaBangla, risks are prioritized based on the established processes in order to respond to unforeseen environmental happenings. A comprehensive risk exposure matrix (Environmental and Social Risk Due Diligence) is established for assessing environmental and social risks and then reported to Management Credit Committee of the company by Relationship Management through Credit Risk Management division.
Financing in eco-friendly and environmentally sustainable business activities and energy efficient industries will be extended through preference by all the credit delivery points. Environmental infrastructures such as renewable energy project(s), Liquid Waste Management, Alternative Energy, Fire Burnt Brick, Non Fire Block Brick, Recycling & Recyclable Product, Green Industry, Safety and Security of Factory, etc. are encouraged and those will be financed by the company with priority. Viability of environmental infrastructures for financing shall be assessed in line with the environmental issues i.e. how the purpose of the project(s)/business (es) & to what extent this/these is/are rewarding to the environment. Most viable project(s)/business(es)/ sector(s) shall be prioritized for financing to position the financial institution gradually as a "Carbon Neutral Financial Institution" first and then as a "Climate Positive Financial Institution". Notably LankaBangla has particular mandate for green financing reflecting its commitment towards sustainability.
The financial institution addresses environmental issues and assesses environmental and Social risks (high/ moderate/low) of projects/ businesses of different sectors in different areas. At the same time, climate risk fund is created for "Green Banking"/Sustainable Financing may be used as a part of CSR activities at the time of emergency.
Green Marketing incorporates a broad range of activities, including products/services design, engineering, modification, new product innovation, changes to the production process and packaging, in order to encourage potential clients to design Green Project or environmentally safe products and also to modify advertising. Besides, company effectively uses green marketing channels more for widening target markets of usual products. Financial Institution takes steps that will help build awareness among common people to promote products/services which cause least harm to the environment. Corporate Affairs Division shall plan for developing & marketing Green Banking products to offer to the customers.
Exclusive training programs or specialized/befitting classes in foundation or other credit related courses for incorporating Green Banking Policy Guidelines as a part of awareness building among the employees of the Company are arranged by the Human Resources DepartmentinconsultationwiththeGreenBankingPolicyGuidelines Implementation Unit (GBPIU). Training programs on environmental and social risk and employee awareness development should have to be implemented by the HR Department as a continuous process.
At LankaBangla, we have long acknowledged that a healthy environment is the foundation for economic progress and the well-being of society. As a leading financial institution, we are committed to finding market solutions that benefit the environment. As per our long term commitment to our community, we continued to invest both in nurturing underprivileged people of our society, and to the environment we breathe in. We provide loans to customers carrying out due diligence and considering the environment and social impact. In all credit delivery points, we have focused on financing eco- friendly and environmentally sustainable business activities and energy efficient industries. Environmental infrastructure projects such as clean water supply, waste water treatment plants, solid and hazardous waste disposal plants, Effluent Treatment Plants, Bio-gas plants, Bio-fertilizer plants and energy efficient/low carbon emission projects like Auto Bricks using Hybrid Hoffman Kiln, Vertical Kiln, Zig-Zag Kiln etc. are always encouraged and dealt with top priority.
LankaBangla Finance Limited believes that a hygienic environment is a key element for healthy consumers which leads to a strong business circumstances. In believing this, LankaBangla Finance Limited is constructing its own building named “LankaBangla Tower” which will be one of the LEED (Leadership in Energy and Environmental Design) certified building consistent with the green banking policy provided by Bangladesh Bank. Having 13 floors along with four basements, the tower will be both environmental friendly and energy efficient which will save both energy and expenditures and will have a good impact on environment.
To make a sustainable environment, we are creating our building based on these following activities:
Our architectures, designers and engineers are instructed very strictly to maintain a healthy construction guideline to keep our eco-system safe and sound and to protect public health around the construction plant. We are also fully aware about the protection of our workers who are fully trained hence provide safety nets, guardrail systems as well as personal fall arrest system to our workers. We have designed our tower to keep enough space inside and outside of the building in such a way so that our employees can feel it as home in working hours.
We will install water efficient instruments to save waters which will have good influence on our environment. We will set up water harvesting system on the tower’s rooftop to preserve raindrops and to put less pressure on underground and surface water.
To save energy and protect the environment, we will use daylight as much as possible in our workplace in working hours. To implement this, we will install glass facade system around the building to consume more sunlight and put less pressure on electricity. We will also use energy efficient LED lights which is also cost efficient and long lasting.
We are considering to use renewable energy system by installing solar power plant on the rooftops of LankaBangla tower as well to use less electricity and reduce electricity expenditure.
LankaBangla Finance Limited has planned to install water recyclable system to diminish the consumption of water which is also cost efficient. Through this system, water will be filtered, disinfected and recycled to use afresh for toilet flushing. This will decrease our water consumption by 50% and it will reduce environmental impact.
We will apply eco-friendly painting to have good impact on our environment as well as employees. Our air ventilation system will be based on natural air and we will apply HVAC (Heating, Ventilation, Air Conditioning) system hence using of fan and aircondition will be reduced and the electricity consumption will be comparatively declined.
We will strictly prohibit smoking inside the building to make a sustainable environment and protect our employees.