Green Banking
Green environment is one of the most important issues world is witnessing today where people from all over the world are increasingly becoming concerned about environment pollution. Governments around the world are working towards balanced development where each country will be able to develop its economy with least negative consequences on the environment.
Bangladesh as a part of the global family is considered as one of the most vulnerable and severely affected countries due to the adverse consequences of environmental pollution. Bangladesh has enacted several legislative measures for different industries to minimize the damage on its environment. Green banking is one of the important policies developed by Bangladesh Bank for the financial sector.
Green Banking is in effect eco-friendly banking to prevent environmental degradation. Green banking involves a two-pronged approach. Firstly, green banking focuses on the green i.e. environmental-friendly transformation of internal operations of all Banks and FIs. It means all the Banks and Financial Institutions should adopt appropriate ways of utilizing renewable energy, automation and other measures to minimize carbon footprint from banking activities.
Secondly, all Banks and Financial Institutions should adhere to environmentally responsible financing that supports green initiatives and projects, by assessing environmental risks of projects, prior to making financing decision.
In line with the instructions from the Central Bank, within the ambit of green banking policy, SABINCO has formulated its own Green banking policy duly approved by Board and taken following initiatives:
Developed its internal Green Banking policy and Green Office Guide to institutionalize various aspects across the organization. Besides, SABINCO has also incorporated the Environment and Social Risk Management (ESRM) in Credit Risk Management Policy. SABINCO complies with the Environmental and Social Due Diligence (ESDD) checklist while approving projects.
Installed Solar Panel in its own building to meet a part of its electricity consumption from Solar Energy.
SABINCO usually prefers financing Green and Environment friendly Projects.
SABINCO envisages financing environment friendly green projects like Solar Energy, ETP, Bio Gas Plant, Auto Brick etc. While approving other industrial projects. SABINCO encourages the borrower to install necessary effluent/waste treatment system to safeguard the environment. Promoting green projects will eventually reduce environmental risks and ecological degradation, thus ensuring sustainable development.