CSR & GREEN BANKING

LANKABANGLA FOUNDATION

STATEMENT ON

GREEN BANKING

TThe concept of green banking has been integral to LankaBangla, and goes hand in hand with our stance on sustainable business model. With the constant headway of our Green Banking Unit (GBU), we have been a successful team in our green banking endeavors. 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.

Green banking

GREEN BANKING UNIT

As per the Bangladesh Bank Circular No. 04 on "Policy Guidelines for Green Banking", LankaBangla Finance has established "Green Banking Policy" which is approved by the Board. A separate Green Banking Unit (GBU) 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 from time to time. GBU will be under the supervision of Risk Management Division (RMD). GBU will be comprised of the representatives from each relevant division.
Followings are the GBU members who will work together for providing input, data and preparing relevant reports as per green banking policy guidelines and Bangladesh Bank requirements.

Green banking
Green Banking Unit Members
Designation Name Status in the Committee
Chief Risk Officer & Head of Green Banking Unit Mohammed Kamrul Hasan Chairman
Head of Corporate Financial Services Mohammed Shoaib Member
Head of SME Financial Services Md. Kamruzzaman Khan Member
Head of Asset Operations Mohammad Faruk Ahmed Bhuya Member
Head of Corporate Credit Mohammad Nazmul Hasan Tipu Member
Head of Human Resources Md. Shariful Islam Mridha Member
Head of Home and Mortgage loan Md. Shariar Parves Member
Deputy Head of IT Kazi Mohtasim Bellah Alom Member
Senior Manager, Corporate Affairs Md. Raziuddin Member
Manager, Green Banking Unit & RMD Ujjal Kumar Coordinator

Statement of

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, 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.

Policy formulation

and Governance

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. A Green Banking Unit (GBU) has been formed with the task of developing policies, planning and administering the green banking initiatives of the company.

Incorporation of

Environmental Risk in CRM (Core Risk Management)

The Company conforms to the instructions stipulated in the detailed guidelines on Environment Risk Management (ERM) of Bangladesh Bank in consideration to the Green Banking 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 incidents. At LankaBangla, risks are prioritized based on the established processes in order to respond to unforeseen environmental happenings. A comprehensive risk exposure matrix is established for assessing environmental risks and then reported to the management credit committee of the company by the branches.

Green banking

Introducing

Green Finance

Financing in eco-friendly and environmentally sustainable business activities and energy efficient industries shall 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".

Creation of Climate

Risk Fund

The financial institution addresses environmental issues and assesses environmental 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" 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, if companies effectively use green marketing channels more for widening target markets of usual products and facilitate to take steps that will help build awareness among common people to promote products/services, and ultimately cause least harm to the environment. Corporate Affairs Division of LankaBanlga is already planning for developing & marketing Green Banking products to offer to the customers.

Introducing

Green Marketing

Creation of Climate

Risk Fund

The financial institution addresses environmental issues and assesses environmental 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" may be used as a part of CSR activities at the time of emergency.

Introducing

Green Marketing

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.

Supporting
employee training,

Consumer Awareness and Green Event

Exclusive training programs or specialized/befitting classes in foundation or other credit related courses for incorporating Green Banking Policy Guidelines are already being conducted as a part of awareness building among the employees of the Company, as arranged by the Human Resources Department inconsultation with the Green Banking Policy Guidelines Implementation Unit (GBPIU). Training programs on environmental and social risk and employee awareness development needs to be implemented by the HR Department as a continuous process.

Green banking 2015

Statement on

Green Banking Initiatives

In response to increasing awareness over climate change, environmental degradation, urgent measures for sustainable development have been addressed by some of the stake holders all over the world. Financial system hold a unique position in an economy that can affect production, business and other economic activities through their procedure for financing activities which would in turn contribute to protect environment/climate from pollution. Moreover, efficiency in energy use, water consumption and waste reduction may significantly contribute for controlling operating cost of many of the banks/NBFIs of the country.

Policy formulation

and Governance

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”. A Green Banking Unit (GBU) has been formed with the task of developing policies, planning and administering the green banking initiatives of the LankaBangla Finance Ltd.

Green banking

GREEN BANKING UNIT

As per the Bangladesh Bank Circular No. 04 on “Policy Guidelines for Green Banking” and LankaBangla Finance “Green Banking Policy”approved by Board. A separate Green Banking Unit (GBU) require to establish for designing, evaluating and administering activities related to green banking issues of the LankaBangla Finance. As per the set BB circulation this unit will report to the high powered committee time to time. GBU will be under the supervision of Risk Management Division (RMD). GBU will be comprised of the representatives from each relevant division. Member of GBU, who will work together for providing input, data and preparing relevant reports as per green banking policy guidelines & Bangladesh Bank requirements.

Green banking

Incorporation

Environmental Risk in CRM

The Company conform the instructions stipulated in the detailed guidelines on Environment Risk Management (ERM) of Bangladesh Bank in consideration of a part of the Green Banking policy.

Green banking

Introducing

Green Finance

Financing in eco-friendly and environmentally sustainable business activities and energy efficient industries shall be extended through preference by all the credit delivery points. Environmental infrastructures such as renewable energy project(s), clean water supply project(s), waste water treatment plant(s), solid and hazardous waste disposal plant(s), Effluent Treatment Plant (ETP), Bio-gas plant(s), Bio-fertilizer plant(s) and energy efficient/low carbon emission project like Auto Bricks using Hybrid Hoffman Kiln, Vertical Kiln, Zig-Zag Kiln 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 & then as a “Climate Positive Financial Institution”.

Creation of Climate

Risk Fund

The financial institution addresses environmental issues & assesses environmental risks (high/ moderate/low) of projects/businesses of different sectors in different areas those are financed by the company and create climate risk fund. A comprehensive risk exposure matrix shall be developed for assessing environmental risks and reported to management credit committee of the company by the branches in the risk exposure matrix. The fund to be allocated/created for “Green Banking” may be used as a part of CSR activities at the time of emergency.

The financial institution addresses environmental issues & assesses environmental risks (high/ moderate/low) of projects/businesses of different sectors in different areas those are financed by the company and create climate risk fund. A comprehensive risk exposure matrix shall be developed for assessing environmental risks and reported to management credit committee of the company by the branches in the risk exposure matrix. The fund to be allocated/created for “Green Banking” may be used as a part of CSR activities at the time of emergency.

Introducing

Green Marketing

Creation of Climate

Risk Fund

The financial institution addresses environmental issues & assesses environmental risks (high/ moderate/low) of projects/businesses of different sectors in different areas those are financed by the company and create climate risk fund. A comprehensive risk exposure matrix shall be developed for assessing environmental risks and reported to management credit committee of the company by the branches in the risk exposure matrix. The fund to be allocated/created for “Green Banking” may be used as a part of CSR activities at the time of emergency.

Introducing

Green Marketing

The financial institution addresses environmental issues & assesses environmental risks (high/ moderate/low) of projects/businesses of different sectors in different areas those are financed by the company and create climate risk fund. A comprehensive risk exposure matrix shall be developed for assessing environmental risks and reported to management credit committee of the company by the branches in the risk exposure matrix. The fund to be allocated/created for “Green Banking” may be used as a part of CSR activities at the time of emergency.

Supporting
employee training

Consumer Awareness and Green Event

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 in consultation with GBPIU by the Human Resources Department. Training programs on environmental and social risk and employee awareness development should have to be implemented by the HR Department as a continuous process.