EXIM BANK

Activities under Phase-I.

As per Bangladesh Banks guideline, EXIM Bank has developed and passed a comprehensive
Green Banking Policy and taken following steps showing general commitment on environment
through in-house performance.
Policy Formulation and Governance

EXIM Bank has formulated an environmental or Green Banking policy and strategy for
approval the Board of Directors. As per clause # 1.1 of BRPD circular # 2 dated 27/02/2011.
The Directors of the Board has assigned to the Executive Committee of the Board to perform
the Green Banking activities/port-folio of the Bank.

The committee is responsible for reviewing the banks environmental policies, strategies and
program. The committee also shall approve a fund in the annual budget allocation for green
banking.

EXIM Bank has also formed a separate Green Banking Unit or Cell having the responsibility of
designing, evaluating and administering related green banking issues of the bank. The senior
executives and operational head of different service delivery station/point are assigned with the
responsibility of leading the unit. The above committee are sitting in the meeting at a certain
interval and analyze the periodical progress of Green Banking activities of EXIM Bank.
Incorporation of Environmental Risk in CRM:

EXIM Bank has incorporated Environmental and Climate Change Risk as part of the existing
credit investment methodology (IRG/CRG) prescribed to assess a prospective customer and
formulate/ circulate checklist for different specific sectors.
Initiating In-house Environment Management:
A 'Green Office Guide' and a set of general instructions already circulated to the employees for
efficient use of electricity, water, paper and reuse of equipments for example: Online
communication & document, double-side printing to save papers, Eco font in printing, use
scrap paper as notepads, avoid disposable cups/glasses, Installation of energy efficient
electronic equipments and automatic shutdown of computers, fans, lights, air coolers, etc. To
promote the in house practice as well as building awareness a class (at least) on each & every
training course has been included.
Introducing Green finance:
EXIM Bank has declared to prefer Eco friendly business activities and energy efficient
industries at the time of selecting/marketing investment customer. Environmental
infrastructure such as renewable energy project, clean water supply project, wastewater
treatment plant, solid & hazardous waste disposal plant, bio-gas plant, bio-fertilizer plant will
be encouraged and financed by bank. Consumer loan programs may also be applied for
promoting environmental practices among the clients.
To comply with the instruction of Bangladesh Bank EXIM Bank has allocated Fund in the
Budget for Green Banking as under for the year 2016:

Creation of Climate Risk Fund:

EXIM Bank will invest in the economic activities of the flood, cyclone and drought prone areas
at the regular profit rate without charging additional risk premium. However, bank has advised
to the EXIM Bank Foundation to build/retain a Climate Change Risk Fund for distribution to
the affecting people in case of emergency. The Board of EXIM Bank has allocated following
Climate Risk Fund during the year-2015-2016.

Introducing Green Marketing:

Green marketing is the marketing of products that are presumed to be environmentally safe.
Green marketing is expected to help awareness development among common people. The
Board of EXIM Bank has allocated following Marketing, Training and Capacity Building Fund
during the year-2015-2016.

Meantime Bank has installed 23 ATM both another 20 ATM booth are in pipeline. 2 CDM and
5 POS machines are also installed.

Online Banking:
Online banking is a green banking. Bank is giving more emphasis to make the easiest way to
help environment by eliminating paper waste, saving gas and carbon emission, reducing
printing costs and postage expenses. Meantime all the branches of the Bank have included
under the system of online banking.
Supporting Employee Training, Consumer Awareness and Green Event:

Bank has taken massive program to cover all of its employee under formal training for building
awareness about Green Banking among themselves. Besides, issuance of circular, guideline and
arrange workshop, seminar etc for building awareness both the employees and its customers
will be continued.
Disclosure and Reporting:

Disclosure and Reporting to Bangladesh Banks Green Banking Cell and others on Green
Banking Activities are in practice along with periodical upgrading the same in Banks websites.

EXIM Bank has completed all the steps and events fixed by Bangladesh Bank under Phase-I.

PRIME BANK

Activities under Phase-I.

PBLs Environmental Blueprint is prepared and structured according to the policy guideline of
Bangladesh Bank. From the 2011 to the year 2016, the bank has been able to take necessary
steps to complete the objective of phase one.

1.1 Policy formation And Governance:

As per the BRPD Circular No. 2, the Prime Bank Limited has formulated its Green Banking
Policy at 27 December, 2011. The policy basically contains a framework of Green Banking of
the bank. The effectiveness of the policy largely depends on the awareness of the employees
regarding the policy. However, in my view there is a lack of awareness about the green banking
policy among the employees of the bank. Besides, the policy is prepared reviewing only the
published material of Bangladesh Bank. As a result it is lack of company specific factors and
international standards.

1.2 Incorporation of Environmental Risk In Core Risk Management:

Prime bank has reviewed its Core Risk Management Guidelines considering the
Environmental Risk Management Guidelines of Bangladesh Bank. I think for incorporating the
Environmental Risk Management Guidelines in the Core Risk Management, the banks risk
management policy has been strengthened.

1.3 Initiating in-House Environment management:

The Green Banking Unit has formed a Green Banking Office Guide. This guide implicates
all the necessary means to ensure Energy efficiency, Paperless communication, equipment
purchase, recycling of office equipment. This proves a complete Guideline for the employees
and management to comply to reduce carbon omission and provide Eco-friendly banking.
However, although the GBC has prepared a Green Office Guide but I think there is a lack of
interest of employees to know about it and there is also a lack of publicity of this guide.

1.4 Introducing To Green Finance:

 Although the bank has made Green Finance against its allocated budget during the year 2016
(Allocation BDT. 380 million & Utilization BDT. 3589 million) but it was lower compared to
other banks in the industry. Besides, Prime Bank has exposure in only to types of projects- ETP
and projects having ETP. So I think Prime Bank may consider other green projects like Solar
Plant, Bio-Gas Plant etc.

1.5 Creation of Climate Risk Fund:

As a requirement of the Green Banking Initiative of Bangladesh Bank, the Prime Bank Limited
allocated BDT. 60 million during the year 2016 for the creation of a climate risk fund. But the
bank did not utilize any portion of the money during the said period.

1.6 Introduction of Green marketing:

To communicate with the customers, potential clients the Prime Bank Limited has
implemented ATM screenshots, Email messages, SMS, and other electronic medias to reduce
previous paper based communications. But I think the bank should focus more on developing
products or services that is associated with some environmental features and which will give
the bank a unique identity.

1.7 Online Banking:

The Prime Bank Limited started its online banking services by the end of the year 2008. But
still only 2.25% of its total account is facilitated with internet banking.

1.8 Supporting Employee Training, Consumer Awareness and Green Event :

From the formulation of the Green Banking Policy by the end of the year 2011 Prime Bank
Limited conducted around 6 workshops mostly held in Dhaka and covered only the company
executives. There is also a lack of reactiveness of the bank to encourage its clients to invest in
more environment friendly projects.

1.9 Disclosure and Reporting of Green banking Activities:

Prime Bank disclosed its first Sustainability Report in the Annual Report 2016. The bank also
discloses green banking initiatives time to time in newspapers. However, there is a little
disclosed materials in the website of the bank regarding Green Banking. But I think the website
is a very good source of making publicity about any new initiatives.

Islami Bank Bangladesh ltd.

IBBL has taken initiative to migrate IBBL in compliance with full-fledged Green
banking operation. To achieve the milestone of green banking, we have started the
re-engineering process our system and mode of operation.

1. Policy formulation & governance

IBBL adopted the Green Banking Policy for the Bank approved by the Board. Having
started its journey in 2011 under Head of Risk Management Wing, the Green Banking
Department (GBD) has circulated Green Office Guide, different instructions for all
workforce to adopt appropriate green initiatives. Moreover, the Risk Management
Committee (RMC) of the IBBL Board looks after, as the high powered committee, the
Green Banking activities.

2. Incorporation of Environmental Risk in IRM

Environmental Risk rating is an integral part of the investment appraisal process.
Bangladesh Bank vide ERM Guidelines stated that Environmental Risk rating is to be
done for all individual customers (corporate, institutional, personal, SME) whose
aggregate facilities are above the following financing thresholds:
For SME, financing > BDT 2.5 million
For Corporate, financing> BDT 10 million
For Real estate, financing > BDT 10 million
In 2015, 2,286 number of investment projects were rated out of 2,628 applicable
investments where as In 2016, 2031 investment clients were environmentally risk
rated which were about 90% of all the eligible investment clients.
3. In-house Environment Management
Initiatives taken by IBBL in 2016 with a view to practicing Green Management in the
offices:
i. Green Office Guide
All operational units i.e. Wings, Divisions, Departments, Branches adopted and
practiced the Green Office Guide meticulously circulated by the GBD.
ii. Waste Management
Demand management, reuse and recycling are the indicative methods of reducing solid
waste. All the e-wastes and solid wastes are collected from every operational unit and
disposed of centrally through e-tendering. The Bank earned Tk. 1.14 million in 2016
from this process.

iii. Energy & water Management

The Bank advises the officials to adopt energy and water efficient practices. The offices
try to ensure efficient use of gas, fuel, electricity and water with a view to reduce carbon
emission. Energy efficient equipments like energy saving bulbs, less sound electricity
generators etc are used in the offices. Energy consumptions of the Bank for 2016 were
as under:
iv. Paper Consumption
Paper consumption in the offices is managed such a way that contributes saving of
paper in the daily operations of the Bank. Use of scrap/one side used papers for note pad
has become usual practice to the employees. One side used papers are also used in the
printing for draft copies of the office assignments. Taka 169.69 million was used for
consumption of papers and photocopies during the period.
v. Renewable Energy Usage
The Bank installed Solar panels at Head Office, 32 branches as a part of its commitment
to the usage of renewable energy resources.
4. Climate Risk Fund
The Climate Risk Fund policies of the Bank support projects, programs, and economic
activities in the flood, cyclone, drought, severe cold etc prone areas of the country as a
part of the CSR expenses. Total expenses in the climate risk related avenues were
Tk.122.03 million in 2016.
5. Green Investment (Finance)
Green Investments (finance) implies the financial services to the businesses and projects
that help prevent deterioration of the environment as well as which are not harmful to
the environment. Green Investments combine both Direct and Indirect green
investments.
As per Banks principles of giving preferences for eco-friendly business activities and
energy efficient industries, it takes different steps for enhancing the green investment.
Banks green finance exposures were taka 54,751.12 million in 2016. The performances
of some major areas of green investments were as follows:

6. Green Promotion & Marketing

i. Online Banking: Customers can get instant registration for i-Banking (Internet
Banking): i-Banking is designed to implement our commitment to green banking and to
enable customers to do banking at their own convenience without visiting the branches.
Our i-Banking facility allows the customer to bank from anywhere, anytime with total
security and confidentiality.
ii. Online Advertisement: Bank is increasingly focusing on online platforms like Face
book, Websites etc. for promotional activities. All our products, offers, promotions,
news are available on websites that reduce the dependency on print media. All these
Digital initiatives are reducing carbon footprints on day-to-day communication
activities.
iii. The Bank emphasizes selling products and/or services based on their environmental
benefits. A number of such products and services like ATM Debit Card, Visa Debit
Card, Remittance Card, Khidmah Card mCash, i-banking, i-recharge, SWIFT, Call
center, Online banking, SMS banking etc are being promoted through vigorous
advertisements in both the electronic and the print media. The Green marketing
expenditure of the Bank was Tk. 18.00 million for the year 2016.
7. Green Training and Awareness Programs: The Bank emphasized the training and
awareness programs on green banking to ensure the reduction of carbon emission from
its operational activities. The Bank arranged Green Banking Training Programs in
Dhaka and 13 (thirteen) Zones to revamp the Green Banking practices. Besides,
officials of the Bank attended the Training programs/workshops/seminars on Green
Banking issues arranged by Bangladesh Bank Training Academy and BIBM in the year.
Training and Awareness programs on Green Banking-2016
8. Disclosure and Reporting of Green banking activities
IBBL has been regularly reporting its green Banking activities/initiatives to the
Bangladesh Bank on quarterly basis since 2011. In view of highlighting our Green
Banking activities/initiatives and creating awareness amongst the stakeholders, a
separate section has been incorporated in our Annual Report, Website and other internal
publications for disclosing our Green Banking activities/initiatives.

AB BANK Green Banking Activities

AB Bank has adopted comprehensive Green Banking Policy in line with global norms
BRPD Circular no. 02 Dated February 27, 2011 on Policy Guidelines for Green
Banking (as approved by Board of Directors 488 Meeting held on 19.12.2011).
Accordingly,
Green Banking Committee (GBC) has been functioning.
A separate Green Banking Unit (GBU) having the responsibility of designing,
evaluating and administering related Green Banking issues of the bank has already been
formed comprising with
9 (Nine) Senior Officials from AB Head Office and Branches. As per Bangladesh Bank
Guidelines AB Bank has already implemented the 2nd Phase of Green Banking.

Phase 1: Policy Formulation and Governance:

Incorporation of ERM in CRM:
Eco friendly business activities and energy efficient industries are given preference in
financing by the
Bank. Environmental infrastructure such as wastewater treatment plant, bio-gas plant,
bio-fertilizer plants are encouraged and financed by the Bank. Besides, projects having
such installations are encouraged. Bank has incorporated Environmental and Climate
Change Risk as part of the existing credit risk methodology and introduced
Environment Due Diligence Checklist to assess existing as well as a prospective
borrower (Credit Circular No.09/2011 in June, 2011). Banks have started Environmental
Risk Rating (EnvRR) since July 2011. The Bank has done environmental risk rating in
2762 projects in 2016.
In House Environment Management:
We have introduced and practicing Green Office Guide (Green Tips) to better manage
In-House Environment. Some of the practices under Green Office Guide is as below:
As per the above guide:
Bank prepares & maintain inventory of the consumption of water, paper, electricity,
energy etc. in its offices and branches in different places.
Saves electricity and reduce water and paper consumption.
In place of relying on printed documents, online communication is extensively used
(where possible) for office management.
Use of energy saving LED Bulb as much as possible.

Climate Risk Fund: Bank to allocate Climate Risk Fund for CSR activities for the
people affected natural calamities like flood, severe winters which we have seen in last
few years. AB Bank has stood by the side of the people affected by the above.
Green marketing: To promote Green marketing Bank is arranging Training & Capacity
Building among its employees.
Online Banking:
ABBL is a fully real-time online Bank and encourage customers to use online banking
for transactions.
It gives more emphasis to make the easiest way to help environment by eliminating
paper waste, saving gas and carbon emission, reducing printing costs and postage
expenses.
Supporting Employee Training, Consumer Awareness and Green Event
In 2016 several workshops were arranged for Banks officials to create awareness of
Green Banking as well as on environment risk measurement of Banks credit exposure.
Earth Hour (Green Event) is practiced which also makes our customers aware.
Disclosure and reporting of Green banking:
Such disclosure has been made in our Annual Report, Banks periodicals as well as our
website.