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Green Banking Practice in Bangladesh: A Comparative Study on Private and Public Commercial Banks
Contents
CHAPTER ONE 3
1.1 Abstract 4
1.2 keywords 4
1.3 INTRODUCTION 4
1.4 Rational of the Study 5
1.5 SCOPE OF THE STUDY 5
1.6 Objectives of the study 5
1.7 Methodology 6
1.7.1 SOURCES of Data Collection 6
1.7.2 DATA Analysis 6
1.7.3 presentation of results and recommendations 7
1.8 Limitations of the Study 7
1.9 literature review 7
CHAPTER TWO 9
2.1 GREEN BANKING Of Shahajalal islami bank ltd. 10
2.1.1 green products 10
2.1.2 Green Activities 10
2.2 Green banking of national bank ltd. 11
2.2.1 Green banking products 11
2.3 Green banking of bank asia ltd. 12
2.3.1 bangladesh bank rating one of the top ten private commercial Banks 12
2.3.2 Summary of Activities of Green Banking 12
2.4 Green banking of janata bank ltd. 12
2.4.1 green banking practices of janata bank ltd. 13
2.5 Green banking of rupali bank ltd 13
2.5.1 green banking activities of rbl 13
CHAPTER THREE 14
3.1 ANALYSIS AND FINDINGS 15
3.2 Mean of three public banks and three public banks 15
3.3 variance and standard deviation of three public and private banks 16
3.4 range of three public and private banks 18
3.5 presentation of the compliance level 19
3.6 analysis of green banking practices of individual banks 21
3.7 overall analysis of green banking practices of public and private banks 22
3.8 summary of the findings 22
CHAPTER FOUR 24
4.1 Recommendations 25
4.2 conclusion 25
references 28
appendix 30
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List of Tables and Charts

Tables:
Table1: Mean of three public banks three public banks
Table2: Mean of three public banks three public banks
Table3: Range of three public and private banks
Table4: Overview of SD, Mean, Range of three public and private banks
Charts:
Chart1: Green Banking Compliance of Public Banks
Chart2: Green Banking Compliance of Private Banks
Chart3: Green Banking Practices of Individual banks
Chart4: Green Banking Practices of Public and Private Bank
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CHAPTER ONE
Introduction
3
1.1 ABSTRACT
The present era of industrialization and globalization has added a lot of comfort and luxury to
human life but has also lead to an alarming situation of huge environmental degradation
incorporated with all the involved activities. Today, the entire sector in the world economy is
facing huge challenge to deal with the environmental problems and their related impacts in
their day to day businesses. Not only the business firms have realized the importance of the
environment but more than that an immense awareness is seen among the consumers and
general public for the same. Due to all these reasons the business organizations have started
modifying their activities and strategies so as to ensure protection to our natural resources and
environment. In this context the financial sector and especially the banks can play an
important role in promoting environmental sustainability. In the present paper green banking
and sustainability has been discussed in detail. The paper also highlights on the stages,
initiatives, benefits and future of green banking in Bangladeshi context. The paper also
discusses about the various organizations and laws and guidelines for environmental
conservation and sustainability and Green Banking.
1.2 KEYWORDS
Green Banking, Bangladesh Bank‟s policy Guideline, Bangladesh Bank, Compliance level,
Public VS Private commercial banks
1.3 INTRODUCTION
Deforestation, dissertation, flood, soil erosion, river bank erosion, increased evaporation, Co2
emissions, rising sea-level, displacement, cyclones, Stalinization, arsenic contamination are
most burning word in the present world. And all words are related natural disaster and
climate change. Because, climate change is the most complicated issue the world is facing.
Across the globe there have been continuous endeavors to measure and mitigate the risk of
climate change caused by human activity. Decades of inconsiderate handling of environment
enticed by unbridled industrial competition have let loose a Pandora's Box, known as "Global
Warming". Global warming, also called "Green House Effect", is a universal issue that calls
for a global retort. The warming is the effect of certain man-made gas emissions such as
carbon dioxide, methane and chlorofluorocarbons (CFCs) that are found responsible for
alteration of balance in the environment and climate changes. As banks play a vital role in an
economic system that can affect all types of business and production activities through
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financing activities and thus may contribute to eradicating polluted environment, they should
adopt greenness and play a pro-active role (Basically known as green banking) to consider
environmental aspects as part of their lending and investing principles, which would divert
industries to invest for environmental management and use of appropriate technologies.
Another name of this attempt is “Sustainable Development” to us.
1.4 RATIONAL OF THE STUDY
The world is now become globalize so we have to sustain in the competitive world. We must
take the competitive advantage that‟s why we cannot avoid the environment while doing
business. Bangladesh Bank has provided a circular of Green Activities. It is mandatory for all
banks to follow the given guidelines. Few banks are doing good green activities but others
not so much. This report spells out the level of compliance in three public and three private
banks in Bangladesh. The findings of the study help to depict the overall picture of Green
Banking practices of selected 6 banks and it will help to do further research.
1.5 SCOPE OF THE STUDY
We know that Bangladesh is the most preferable playground to play with people life for
natural disaster. Deforestation, dissertation, flood, soil erosion, siltation, sedimentation, river
bank erosion, increased evaporation, Co2 emissions, rising sea-level, displacement, cyclones,
Stalinization, arsenic contamination are most burning word in the present world. And all
these words are related natural disaster and very suitable to accommodate in our country.
That‟s why, Green Banking open a new era for Bangladesh banking industry to create a
positive image, increase market value and contribute for developing the country. By adopting
a comprehensive green banking policy, installing new green banking products, considering
green banking strategies at time of loan disbursement, developing program for the clients,
mass people, and stakeholders to create awareness among them about the environment a bank
can easily practice green banking. ShahjalalIslami Bank, Mutual Trust Bank Ltd., AB Bank
Ltd., Al ArafahIslami Bank Ltd., National Bank Ltd., Uttara Bank Ltd., Rupali Bank Ltd.,
Jamuna Bank Ltd., Brac Bank Ltd., United Commercial Bank Ltd., Basic Bank Ltd., along
with Islami Bank Bangladesh Ltd., are famous for practicing green banking in Bangladesh.
1.6 OBJECTIVES OF THE STUDY
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The main objective of the report is to identify the green banking activities practiced by three
private banks and three public banks. Three private banks are: Bank Asia Ltd., Shahajalal
Islami Bank Ltd., National Bank and three public banks are: Janata Bank Ltd., Basic Bank
Ltd., Rupali Bank Ltd. which includes the following specific objectives.
The specific objectives of this report are:
 To draw a clear picture of Green Banking.
 To examine Green Banking policy and implementation of three private and three
public banks.
 To compare the compliance with Green Banking policy by public and private
banks in Bangladesh.
 To give recommendations on the basis of Findings.
1.7 METHODOLOGY
Methodology is the study or theoretical analysis of particular working methods. Adoption of

methodology is an important factor in performing any study. If the methodology of the study
is properly adopted and the study runs properly according to the methodology, the study is
supposed to be successful. The following represents the methodology of the study.
1.7.1 SOURCES OF DATA COLLECTION
Information used in this report has been collected from secondary sources mainly. Majority
of the information were collected from the secondary sources, which includes: Books,
Articles, Reading materials, Publications, Various circulars, and Reporters published by
Banks.
1.7.2 DATA ANALYSIS
This is a descriptive report mainly aiming to depict the Green Banking Practices and
monitoring techniques of Banks. The data gathered from secondary sources were arranged
orderly to get a clear picture of the Banks Green Banking practices. The study includes both
qualitative and quantitative analysis of Green Banking practices and monitoring tools. Based
on the observational information writer also tries to evaluate and analyze the problems
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involved in various phases of the Green Banking practices according to the Bangladesh
Bank‟s reference
1.7.3 PRESENTATION OF RESULTS AND RECOMMENDATIONS
Recommendations are made based on the critical evaluation of the different phases of Green
Banking Practices according to Bangladesh Bank‟s reference.
1.8 LIMITATIONS OF THE STUDY
It is obvious that every study has some limitations. Here few limitations are:
 Data collection was tough as there were secrecy regarding data collection.
 Here in this report only three public and three private banks have used which does not
specify the overall Green Banking practices by all banks of Bangladesh.
1.9 LITERATURE REVIEW
Global warming, which is one of the most burning & discussed issues, has the worst impact
on the climate of the planet as a whole. The rapid change in climate will be too great to be
adapted by the eco-systems, since the change have already made direct impact on
biodiversity, agriculture, forestry, dry land, water resources and human health. As such, issue
of global warming calls for a global response. Due to unusual weather pattern, rising
greenhouse gas, declining air quality etc. society demands that business also take
responsibility in safeguarding the planet (BB Green Banking policy). Few literature reviews
that are studied by the reporter are given below:
Thombre (2011) Argued that environmental impact of bank‟s external activity is huge
though difficult to estimate. Thus, encouraging environmentally responsible investments and
careful lending should be one of the responsibilities of the banking sector. (Sahoo and Nayak
2008). The bank should go green and play a pro-active role to take environmental and
ecological aspects as part of their lending principle, which would force industries to go for
mandated investment for environmental management, use of appropriate technologies and
management systems (Hayder 2012).
Verma (2012) Stated that Indian banking is gradually coming to realize that there is need
from a shift from the „profit, profit and profit motive to „planet, people and profit‟. GB
involves pursuing of financial and business policies that are not hazardous to environment
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and help to protect environment. The purposes of GB are to use resources with responsibility
avoiding waste and giving priority to environment and society. Bangladesh Bank Governor
argued that all need to change mindset about environmental issues for making a better future
through greening financial transactions (Star 2010). To save our planet it is the time to take
initiative for green banking. The banks should give priorities in providing loan to the sectors
that encourage environmental practices (Rashid 2010). GB is not limited within branches
green activities, but extends to facilitating green investment/ financing so that a huge
contribution to resource-efficient and low carbon industries, i.e. green industry and green
economy in general can be made.
Habib (2012) Stated that much more is expected from NGOs and civil society organizations
in the form of awareness development, research activities and business monitoring. For rapid
change among consumers and businesses, a collective endeavor of government, media, NGOs
will be required. The following GB wheel indicates how the whole banking system works as
a chain.
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CHAPTER TWO
Overview of green banking practice in bangladesh
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2.1 GREEN BANKING OF SHAHAJALAL ISLAMI BANK LTD.
As bankers, waste goes against our grain, and frugality is a natural tendency. So it just makes
sense that Green Bank would lead the way in finding ways to blend our customers‟ financial
interests with the interests of the environment. Green Bank is equally committed to all of
SJIBL stakeholders - customers, employees, communities and shareholders.
SJIBL's commitment towards Green Banking will be based on the following broad
policies:
Provide a safe healthful workplace and ensure that personnel are properly trained
and have appropriate safety and emergency equipment.
Participate in efforts to improve environmental protection and understanding and
share appropriate pollution prevention technology, knowledge and method.
Use and encage to use methods that do not adversely affect the environment,
including developing and improving products, operations and technologies to
minimize waste, prevent air. Water, and other pollution, minimize health and safety
risks, and dispose of waste safely and responsibly.
Ensure that SJIBL make responsible use of energy including conserving energy,
improving energy efficiency, and giving preference to renewable over non-
renewable energy SJIBL when feasible.
2.1.1 GREEN PRODUCTS
The followings are some example of Green Products: Finance for fsrmers named as Krishan,
Shobujayon, finance for handicraft and jute products named as Kutir, finance for re-cycle
industry named as Rupantor, finance for solar-panel named as Shobuj-shokti, finance for
industries named as Shobujshilpo, finance for ETP plants named as Shobujporibesh etc
2.1.2 GREEN ACTIVITIES
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Date Green Events
17 Nov, Tree Plantation Program at Armanitola Governement High Scheool by

2015 Mitford Branch
08 Aug, Training of Green Banking and CSR for the Officers at ShahjalalIslami
2015 Bank Training Academy
14 Jun, Tree Plantation Program at Chuadanga branch on June 14 2015 Press

2015 Release
12 Jun,
Tree Plantation at Khepupara Branch on June 12 2015 Press Release
2015
09 Jun,
Tree Plantation at Nawabgonj Branch 09-June-2015
2015
30 May,
Tree Plantation at Joypara on May 30 2015 Press Release
2015
2.2 GREEN BANKING OF NATIONAL BANK LTD.
Green Banking policy enables an environmentally responsible bank to contribute in the

economic system consisting of production, distribution business by conscious
environmentally responsive finance, process, capacity building to promote pollution free
environment and living standards. National Bank Limited recognizes the importance and
launching different initiatives in this direction through strategic planning, operations and risk
management. This Green Banking Policy lays down the fundamental components of its roll-
over. Green Banking requires a paradigmatic change in thinking about economics, business
and finance. Its success would be greater if the world governors started to revise their
economic paradigms from being “monetary economics” to “Ecological economics” and begin
to transform their accounting principles from purely being financial into ecological /
operational energy accounting patterns. Future green banking may transform in this direction.
2.2.1 GREEN BANKING PRODUCTS
That are supportive by National Bank Limited are: Bio Gas project, ETP financing, Solar
panel, Mobile Banking and Mobile payments, online banking etc.
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2.3 GREEN BANKING OF BANK ASIA LTD.
As a Bank they play an intermediary role between economic development and conservation
of the environment. Their Green Banking activities are on multidimensional areas which
include both in-house environment management and undertaking Green Financing towards
supporting Green Economy:
2.3.1 BANGLADESH BANK RATING ONE OF THE TOP TEN PRIVATE COMMERCIAL
BANKS
Bangladesh Bank has recognized Bank Asia as one of the top ten private commercial
Banks for their contribution to Green Banking activities across the country.
As our economy moves ahead, we believe financial institutions should undertake more
sustainable activities as we need to make the optimum utilization of our resources. We are
working forward to extend our reach for Green Banking Initiatives in the coming year and
hope to maintain our leading position.
2.3.2 SUMMARY OF ACTIVITIES OF GREEN BANKING
BASIC Bank Ltd has been undertaking the following steps/activities as part of
implementation of Phase-II under compliance with policy guidelines for Green Banking of
Bangladesh Bank:
Formed a Green Banking Policy Implementation & CSR Unit (GBPICSRU) of 12 (Twelve)
Officials (As per Annexure- A) headed by one Deputy Managing Director and the unit is
acting to implement Green Banking activities in the Bank. Formulated a Green Banking
Policy of BASIC Bank limited (See Policy in detail) duly approved by its Board of Directors
which has been circulated to all Branches & Divisions of Head Office. Issued necessary
circulars to implement In-house Environmental Management by all of its offices. Approved
sizable Budgetary Provision for Climate Risk Fund for the Year 2013.Steps are being taken
to introduce green marketing which incorporate a broad range of activities, including a
product modification, change of the production process, packaging change as well as
modifying advertising etc.
2.4 GREEN BANKING OF JANATA BANK LTD.
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The environment of the world is facing serious threat because of environmental pollution and
climatic change. Rapid climatic changes are causing negative impacts on agriculture, forests,
water resources, human health, bio-diversity, etc. Unusual rising of greenhouse gas, unlawful
destruction of forests, unplanned use and misuse of natural resources are the main causes of
environmental pollution and climatic change. Environmental hazards have been occurred
through air and water pollution, scarcity of water, narrowing river channels, faulty disposal of
hospital, industrial and household waste, destruction of forest, earth filling of ponds and
water bodies. The environment of Bangladesh is also deteriorating rapidly. Collective
measures by all quarters are necessary to protect the environment pollution and
environmental hazard. As the most vulnerable among the countries under the threat of
climatic change risk, the financial institutes of Bangladesh also should play important role to
prevent the environmental hazard worldwide.
2.4.1 GREEN BANKING PRACTICES OF JANATA BANK LTD.
The core objective of green banking is to ensure customer services, finance, protection of
internal environment of management through adoption and compliance of environment
friendly banking: online activities, information online, ATM system etc.
2.5 GREEN BANKING OF RUPALI BANK LTD
Green banking is a device that considers social and ecological factors to protect environment
and conserve natural resources. If we protect environment, we protect ourselves. Green
bankers think to protect environment and conserve power and energy in order to ensure a
safer world for the next generation.
2.5.1 GREEN BANKING ACTIVITIES OF RBL
RBL has set up solar system in 5 branches (Powered by solar energy).RBL has designed two
sector specific policies such as Tannery and Jute sector. Advices are given to all staffs and
officials for turning off their PC, Printer, Fan, AC and other office equipment‟s whenever
they are not in use. Strict instructions are provided to maintain office time schedule so that
unnecessary stay in office could be avoided. All staff & officers are advised to use car pool/
bus pool/ rickshaw pool/taxi pool in order to reduce cost while on the way of office or in
corporate travel. RBL have prepared a green office guide. Steps have taken to educate clients.
etc.
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CHAPTER THREE
Analysis and Findings
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3.1 ANALYSIS AND FINDINGS
This study is done to analyze the compliance level of green banking activities of three public
and three private banks. After that a graphical presentation is given. A check list is prepared
by the use of Bangladesh Bank‟s policy guidelines of green banking. The checklist refers to
that how many policies of green banking are done by those banks and then total compliance
level has shown separately.
3.2 MEAN OF THREE PUBLIC BANKS AND THREE PUBLIC BANKS
The mean is the average of all numbers and is sometimes called the arithmetic mean. To
calculate mean, we need to add together all of the numbers in a set and then divide the sum by
the total count of numbers. The mean calculation of the three selected public Banks is given
below:
∑
We know that, mean =
No. Three Public Banks Xi (%)
1 Rupali Bank ltd. 89.47
2 Janata Bank ltd. 68.42
3 Basic Bank ltd. 78.95
Total 236.84
̅ 78.95
Table: 1
15
No. Three Private Banks Xi (%)
1 National Bank ltd. 36.894
2 Shahajalal Islami Bank ltd. 73.68
3 Bank Asia ltd. 89.47
Total 199.99
̅ 66.66
Table: 2
Comment:
After the above calculation we can see that the mean is highest in public banks than private. It
means that, public banks are performing well in average. The average score of public banks
indicates that the Green Banking practices of those banks are good. Public banks are
following the majority of the guidelines given by the Bangladesh Bank.
3.3 VARIANCE AND STANDARD DEVIATION OF THREE PUBLIC AND PRIVATE

BANKS
The variance (symbolized by S2) and standard deviation (the square root of the variance,
symbolized by S) are the most commonly used measures of spread. We know that variance is
a measure of how spread out a data set is. It is calculated as the average squared deviation of
each number from the mean of a data set.
Variance and Standard deviation of three public banks are given below:
∑ ̅̅̅
We know that Variance =
16
= 73.85%
Standard Deviation = √∑ ̅
=√
= 8.59%
Variance and Standard deviation of three private banks are given below:
∑ ̅̅̅
We know that Variance =
= 486.27%
Standard Deviation = √∑ ̅
=√
= 22.05%
Comment:
Here the Standard deviation of public banks is 8.59% and the standard deviation of private
banks is 22.05%. We know that, the largest standard deviation is not acceptable. The more
the standard deviation the more the deviation from the expectation. in case of large value of
standard deviation it should be avoided in this study as because of the large value of standard
deviation indicates that the banks are not following the guidelines given by the Bangladesh
Bank. So here it can be said that public banks are doing good Green banking practices.
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3.4 RANGE OF THREE PUBLIC AND PRIVATE BANKS
The range is the difference between the highest and lowest values within a set of numbers. To
calculate range, subtract the smallest number from the largest number in the set. Here in the
public banks the largest value is 89.47 which is of Rupali bank ltd. And the smallest value is
68.42 which is of Janata bank ltd.
Range of three public and private banks is given below:
Banks Calculation Range
Three public Banks (89.47-68.42) 21.05
Three private Banks (89.47-36.84) 52.63
Table: 3
Comment:
Here it is seen that the highest value is 52.63 that mean private banks range is higher than
public banks. In case of range we always choose the short range. If the difference between the
highest value and the lowest value results large value it means that the selected banks are not
doing good Green Banking Practices. From the above table it is found that the public banks
range is lower than the private banks. So it can be said that public banks are doing well.
From the above analysis the following decision can be taken:
No. Banks SD Mean Range
1 Three public Banks 8.59% 78.95 21.05
2 Three private Banks 22.05% 66.66 52.63
Table: 4
Comment:
From the above analysis it is found that the green banking practices of the public banks are
good than the private banks. The standard deviation of the public banks is lower than the
private banks. And the Mean of the public banks is larger than the private banks. And the
range is lower in the public banks than the private banks.
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So it is clear that from the above analysis, public banks Green Banking Performance is very
good than private banks.
3.5 PRESENTATION OF THE COMPLIANCE LEVEL
The banks of Bangladesh are guided to follow the requirements of green banking by
Bangladesh Bank in their “policy guidelines for Green Banking” (BRPD circular No. 02,
2011). This study spells out the extent to which the private and public banks have complied
with that guideline. The data have collected from the banks Green banking policy statement.
These policy statements have included in the Appendix 1 of this report. The following charts
describe the level of compliance of green banking individually the public (three banks) and
private banks (three banks).
Public Banks
120
100
80
60
40
20
0
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3.1 3.2 4
Source: Appendix 2
Chart1: Green banking compliance by public Banks
Comment:
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From the above chart it is clear that selected public banks Green banking practices is good
enough. Most of the policies given by Bangladesh bank have complied. But the condition no.
2.1 (sector specific Environment policies) and the condition no. 3.2 (Reporting in standard
format with external verification) both of them are Zero. These two conditions are also very
much important. All banks should follow the guidelines given by Bangladesh Bank. If all
policies are adopted it is hoped that the banking reputation and also the profitability will be
increased.
Overall it is found that the Green banking practices by public banks is good.
Private Banks
120
100
80
60
40
20
0
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3.1 3.2 4
Source: Appendix 2
Chart2: Green banking compliance by private Banks
Comment:
From the above chart it is clear that selected private banks Green banking practices is not so
good comparing selected three public banks. Most of the policies given by Bangladesh bank
have not complied. But the condition no. 3.1 (Designing and innovative products) and the
condition no. 3.2 (Reporting in standard format with external verification) both of them are
Zero. These two conditions are also very much important. All banks should follow the
20
guidelines given by Bangladesh Bank. If all policies are adopted it is hoped that the banking
reputation and also the profitability will be increased.
Overall it is found that the Green banking practices by private banks is not so good like
public banks.
3.6 ANALYSIS OF GREEN BANKING PRACTICES OF INDIVIDUAL BANKS
The above analysis shows that how many policies of green banking given by Bangladesh
Bank are being maintained by public banks and private banks. Here the below analysis shows
that the overall performance of green banking by individual banks. Following chart (Chart-2)
represents the result which has been derived from the „percentage calculation sheet‟. Here,
the percentage of each bank has been disclosed on the left side.
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Rupali Bank Basic Bank Janata Bank Bank Asia National Shahajalal
Bank Islami Bank
Chart 3: green banking practices of individual banks
Comment:
Following chart delivers that the maximum percentage is 89.47% which is accomplished by
Rupali Bank ltd and Bank Asia ltd; whereas the minimum score is 36.84% which is
performed by National Bank. Other banks three banks have resulted between the ranges of
68.24% to 73.68%. Overall the Bank Asia is performing very well.
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3.7 OVERALL ANALYSIS OF GREEN BANKING PRACTICES OF PUBLIC AND PRIVATE

BANKS
Following chart (Chart-3) represents the result which has been derived from the „percentage
calculation sheet‟. Here, the percentage of public and private banks has been disclosed in the
left side.
80
78
76
74
72
70
68
66
64
62
60
Public Banks Private Banks
Chart 4: Green banking practices of public and private banks
Comment:
The following chart shows that the three public banks doing green banking practices well but
the three private banks are not doing so well. All banks should follow the guidelines given by
Bangladesh Bank. If all policies are adopted it is hoped that the banking reputation and also
the profitability will be increased. Private Banks are not so much concerned about the
practices of Green Banking than public banks.
3.8 SUMMARY OF THE FINDINGS
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The findings which have been derived through the analysis and which have been discussed
thoroughly in the above sections are presented here to overview at a glance:
 The total score of the studied banks are minimum 36.84% and maximum 89.47% (out
of 100).
 National Bank taking initiatives for green banking. At this moment their score is
lower than other banks. This is only 36.84%.
 Majority of the banks not reporting in standard format with external verification.
 Creation of climate risk fund is very important issue, but the selected banks are not
doing well in this policy.
 Bank Asia and Rupali bank having the highest score.
 Banks are not conscious about Designing and Introducing Innovative Products.
 In case of Janata Bank, Shahajalal Islami Bank and National Bank ltd., they are not
reporting Green Banking Practices on Quarterly Basis.
These are the findings after the above analysis.
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CHAPTER FOUR
Recommendations and Conclusion
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4.1 RECOMMENDATIONS
The following points are recommended through this study:
 Bangladesh Bank should take additional steps to make the banks and the general
people of the country more aware about its activities.
 Bangladesh Bank should punish those banks which are not maintaining the policy
guidelines given by them.
 Bangladesh bank should give a minimum set of requirements for disclosure about
Green Banking.
 Banks should report their green banking performances on quarterly basis.
 All banks should report in standard format with external verification.
 Each bank must maintain a proper policy formulation and governance.
 Banks should give emphasis on Green Finance.
 If every bank give emphasis on employee training on Green Banking the bank will
definitely do better performance.
4.2 CONCLUSION
Green is good for you and the planet. And banks big and small are increasingly offering
green loans, sustainable certificates of deposit and paperless checking rewards that dish out
discounts and fee breaks. The result: more green in your pocket. Green banking isn't just for
tree huggers anymore. It's becoming mainstream as a way to make, save and lend money.
"Customers want to make a difference in the environment,"
The easiest way for you to bank green is to start using the online banking services that are
available. Benefits of online banking include less paperwork, less mail and less driving to
branch offices, which all have a positive impact on the environment. Interestingly, online
banking can also increase the efficiency and profitability of a bank. A bank can lower their
own costs that result from paper overload and bulk mailing fees as more customers use online
banking.
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Banks can do much more to help the environment than just promote online banking. A truly
green bank will reduce their carbon footprint by building more efficient branches,
implementing energy-efficient operational procedures, offering transportation services for
their employees, promoting sustainable banking and increasing their lending in environment-
sensitive industries. Banks can also support eco-friendly groups and raise money for local
environment initiatives.
Government as well as every bank should take initiatives in respect of green banking
practices for protecting our environment. Bangladesh bank will emphasize with significance
of green banking activities/practices of a bank while according permission for opening new
bank branches and approval for launching new bank. Government should also encourage the
general people about the green banking practices. The central bank should monitor or
supervise commercial banks whether they are practicing green banking or not. So, every bank
has to participate and contribute to green banking practices in today‟s extreme national and
global banking competition. Taking into account the adverse effects of climate change and
progressive action worldwide, Bangladesh Bank, the central bank of Bangladesh, has shown
a deep commitment towards the vision of green world through green initiatives. Thereby
Bangladesh Bank itself appears to be an example for the financial sector by performing some
green banking activities for its head office and branch office management. These activities
certainly convey a strong message to the financial institutions about the seriousness of
Bangladesh Bank in its green movement. As far as green banking is concerned Bangladeshi
banks are far behind their counterparts from developed countries. The implementation status
of the study highlights the fact that banks in Bangladesh are beginning to understand the
importance of introducing green banking into their mainstream operations. Still, no bank in
Bangladesh has been found in the UNEPs signatories of the Equator Principlesvii (which is
regarded as one of the most important standards for responsible financing). The general
picture presents a transition from some notable individual actions in a consistent and
measurable environmental performance for most banks. According to this study, though the
banking industry in Bangladesh are in the intensification phase passing through the
foundation phase within the time frame, some banks are yet to stand on its feet. A few
commercial banks are engaged in in-house environment management and are contributing
towards environment friendly finance through their Green Energy Loans. However banks
have a lot more scope to contribute and should make adequate investment in generating
renewable energy. Banks should take initiative to set absolute Green House Gas emission
26
reduction targets from operations, energy use and business travel. Banks should also be
engaged in financing Clean Development Mechanism (CDM) projects. For this, awareness of
development and advisory services by banks in the process of development of CDM projects
will be crucial. Banks should also take steps to form Climate Risk Fund to finance the
economic activities in the flood, cyclone and drought prone areas. In case of environmental
risk rating, banks need to apply a quantitative approach for a more justified rating along with
Environmental Due Diligence (EDD) Checklist under Subjective Criterion. They must speed
up proper awareness and effective capacity building for the Board of Directors/competent
authority/management at all levels of the banks/financial institutions and clients as well. They
should take diversified activities especially introducing innovative products in the model of
Bangladeshi infrastructure for a true green economy. Although Bangladesh have started its
green journey lately, the hope is that a cooperative effort of banks and other stakeholders will
contribute remarkably in coping with climate challenges and smoothen the path of
sustainability in coming years.
27
REFERENCES
Azam, Safiul (2012), „Green corporate environment thru' green banking and gree financing‟
available at http://www.thefinancialexpressbd.com/more.php?news_id=135391&date=2012
-07-04
Bangladesh Bank (2011), Policy Guidelines for Green Banking, available at

http://www.bangladesh bank.org/mediaroom/circulars/brpd/feb272011brpd02e.pdf
Bangladesh Bank (2012), Green Banking Report, Green Banking and CSR Department.
Bhowmik, S.C and Uddin, M.A (2015), „A Study on the Compliance of Bangladesh Bank’s
Policy Guidelines for Green Banking‟ pp 71-77
Biswas N. (2011): „Sustainable Green Banking Approach: The Need of the Hour, Business
Spectrum‟, 1(1), pp: 32-38
Dash R. N. (2008): Sustainable “Green” Banking: The Story of Triodos Bank, CAB Calling,
October- December, 26-29
Equator Principles (2011), About equator principles, available at http://www.equator

principles.com/index.php/about-ep/about-ep.
Goyal, K.A. and Joshi, Vijay (2011), A Study of Social and Ethical Issues in Banking
Industry, International Journal Economic Research, ISSN: 2229-6158, 49-57
Mallya, D., Prita (2012), „Sustainable Banking in India: The Road Less Travelled, National
Conference on Emerging Challenges for Sustainable Business’ 2012, ISBN - 978-93-
81583-46-3.
Rahman, Atiur (2012). „Climate Change and Banking Sector of Bangladesh‟, seminar
organized by BIBM, available at http://www.bangladeshbank.org/governor/speech/feb08201
2.pdf
Schultz, Clark (2010), „what is the meaning of green banking’, Available at

http://greenbankreport.com/green-bank-deals/what-is-the-meaning-of-greenbanking/
Thombre, Arjunrao, Kailash (2011), „The New Face of Banking: Green Banking’, Research
Paper- Commerce, Vol.1, Issue. II, ISSN No-2032-5063.
28
Websites:
http://www.articlesbase.com/environment-articles/the-role-of-green-banking-
inenvironmental-management-3437358.html [Accessed on February 08, 2016, viewed:
2:30pm]
http://www.thedailystar.net/newDesign/news-details.php?nid=149676 [Accessed on February

15, 2016, viewed: 3pm]
http://www.thefinancialexpress-bd.com/more.php?news_id=132169&date=201206-08
[Accessed on March 22, 2016, viewed: 10:20am]
http://www.peblds.org/files/Publications/Articles/ECOFACT_Towards_green_ba nking.pdf
[Accessed on March 24, 2016, viewed: 12:45pm]
http://www.shahjalalbank.com.bd/Green_Banking.php [Accessed on April 15, 2016. Viewed:

1:45pm]
http://www.indusind.com/downloads/Solar_atm_Launch.pdf [Accessed on May 03, 2016,

viewed: 3:30pm]
http://www.bangladesh-bank.org/fnansys/bankfi.php [Accessed on May 03, 2016, viewed:

7:50pm]
29
APPENDIX
Part A: Check List:
Check list made on the basis of

Banking Regulation & Policy Department
Bangladesh Bank Bank Name:
BRPD Circular No.02
For All Scheduled Banks in Bangladesh
conditions Title Compliance status

Compiled Not
Compiled
1.1 Policy Formulation and Governance
1.2 Incorporation of Environmental Risk in CRM
1.3 Initiating In-house Environment Management
1.4 Introducing Green finance
1.5 Creation of Climate Risk Fund
1.6 Introducing Green Marketing
1.7 Online Banking
1.8 Supporting Employee Training, Consumer
Awareness and Green Event
1.9 Disclosure and Reporting of Green Banking
Activities
2.1 Sector Specific Environmental Policies
2.2 Green Strategic Planning
2.3 Setting up Green Branches
2.4 Improved In-house Environment Management
2.5 Formulation of Bank Specific Environmental
Risk Management Plan and Guidelines
2.6 Rigorous Programs to Educate Clients
2.7 Disclosure and Reporting of Green Banking
Activities
3.1 Designing and Introducing Innovative
Products
3.2 Reporting in Standard Format with External
Verification
4 Reporting Green Banking Practices on
30
Quarterly Basis
Part B: Green Banking Functions
SL Nature of The Job Function (descriptions of the job)

1 Sector Specific I. Agriculture, Agri-business (Poultry & Dairy), Agro
Environmental farming
Policies be II. Leather (Tannery)
designed III. Fisheries
IV. Textile and Apparels
V. Renewable Energy
VI. Pulp and Paper
VII. Sugar and distilleries
VIII. Construction and Housing
IX. Engineering and Basic Metal
X. Chemicals (Fertilizers, Pesticides and
XI. Rubber and Plastic Industry
XII. Hospital/Clinic, Chemical Trading
XIII. Brick Manufacturing
XIV. Ship breaking etc.
2 Green Strategic Determine green targets
Planning I. To determine a set of achievable targets and
strategies.
II. To disclose these in the annual report and web-site for
green financing and in-house management.
Target areas for in-house management:
i. To attain energy efficiency in the form of the use of
renewable energy.
ii. To reduce electricity, gas and petrol consumption.
iii. To reduce of Green House Gas (GHG) emissions.
iv. To have environment friendly office building.
v. To issue e-statements, electronic bill pay.
31
vi. To save papers.

Target areas for green financing:
i. To reduce investments for environmentally harmful
activities.
ii. To attain a particular percentage of environmental
investment.
iii. To introduce eco-friendly financial products.
3 Setting up Green Features of Green Branches:
Branches To use maximum natural light
To use renewable energy
To use energy saving bulbs and other equipments.
To reduce water and electricity use.
To use recycled water.
A green Branch will be entitled to display a special
logo approved by Bangladesh Bank.
4 Improved In-house To take Strategy of reuse, recycling of materials &
Environment equipments, and source reduction and waste
Management minimization.
To rely increasingly on virtual meeting through the
use of video conferencing in lieu of physical travel for
saving cost and energy.
5 Formulation of To develop and follow an environmental risk
Bank Specific management manual or guidelines for the assessment/
Environmental monitoring of project and working capital
Risk Management loans/investments.
Plan and To set internationally accepted higher environmental
Guidelines. standards.
6 Rigorous To encourage/ influence the clients and business
Programs to houses comply environmental regulation.
Educate Clients to be To introduce rigorous program to educate clients.
undertaken.
32
7 Disclosure and To start publishing independent Green Banking and

Reporting of Sustainability reports showing past performances,
Green Banking current activities, and future initiatives.
Activities. To disclose update and detail information about
Bank‟s environmental activities and performances of
33

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Green Banking Practice in Bangladesh: A Comparative Study on Private and Public Commercial Banks

List of Tables and Charts

1.4 RATIONAL OF THE STUDY

1.5 SCOPE OF THE STUDY

1.6 OBJECTIVES OF THE STUDY

The specific objectives of this report are:

 To draw a clear picture of Green Banking.

 To give recommendations on the basis of Findings.

Methodology is the study or theoretical analysis of particular working methods. Adoption of

1.7.1 SOURCES OF DATA COLLECTION

1.7.2 DATA ANALYSIS

1.7.3 PRESENTATION OF RESULTS AND RECOMMENDATIONS

1.8 LIMITATIONS OF THE STUDY

1.9 LITERATURE REVIEW

2.1 GREEN BANKING OF SHAHAJALAL ISLAMI BANK LTD.

2.1.1 GREEN PRODUCTS

2.1.2 GREEN ACTIVITIES

Date Green Events

17 Nov, Tree Plantation Program at Armanitola Governement High Scheool by

14 Jun, Tree Plantation Program at Chuadanga branch on June 14 2015 Press

2.2 GREEN BANKING OF NATIONAL BANK LTD.

Green Banking policy enables an environmentally responsible bank to contribute in the

2.2.1 GREEN BANKING PRODUCTS

2.3 GREEN BANKING OF BANK ASIA LTD.

2.3.2 SUMMARY OF ACTIVITIES OF GREEN BANKING

2.4 GREEN BANKING OF JANATA BANK LTD.

2.4.1 GREEN BANKING PRACTICES OF JANATA BANK LTD.

2.5 GREEN BANKING OF RUPALI BANK LTD

2.5.1 GREEN BANKING ACTIVITIES OF RBL

3.1 ANALYSIS AND FINDINGS

3.2 MEAN OF THREE PUBLIC BANKS AND THREE PUBLIC BANKS

No. Three Public Banks Xi (%)

1 Rupali Bank ltd. 89.47

2 Janata Bank ltd. 68.42

3 Basic Bank ltd. 78.95

No. Three Private Banks Xi (%)

1 National Bank ltd. 36.894

2 Shahajalal Islami Bank ltd. 73.68

3 Bank Asia ltd. 89.47

3.3 VARIANCE AND STANDARD DEVIATION OF THREE PUBLIC AND PRIVATE

3.4 RANGE OF THREE PUBLIC AND PRIVATE BANKS

Range of three public and private banks is given below:

Banks Calculation Range

Three public Banks (89.47-68.42) 21.05

Three private Banks (89.47-36.84) 52.63

From the above analysis the following decision can be taken:

No. Banks SD Mean Range

1 Three public Banks 8.59% 78.95 21.05

2 Three private Banks 22.05% 66.66 52.63

3.5 PRESENTATION OF THE COMPLIANCE LEVEL

3.6 ANALYSIS OF GREEN BANKING PRACTICES OF INDIVIDUAL BANKS

Chart 3: green banking practices of individual banks

3.7 OVERALL ANALYSIS OF GREEN BANKING PRACTICES OF PUBLIC AND PRIVATE

Chart 4: Green banking practices of public and private banks

3.8 SUMMARY OF THE FINDINGS

These are the findings after the above analysis.

The following points are recommended through this study:

Bangladesh Bank (2011), Policy Guidelines for Green Banking, available at

Equator Principles (2011), About equator principles, available at http://www.equator

Schultz, Clark (2010), „what is the meaning of green banking’, Available at

http://www.thedailystar.net/newDesign/news-details.php?nid=149676 [Accessed on February

http://www.shahjalalbank.com.bd/Green_Banking.php [Accessed on April 15, 2016. Viewed: