Green Banking

Summary of Activities of Green Banking

Policy guidelines for Green Banking were circulated to all scheduled banks by Bangladesh Bank on February 27, 2011 (See detail Circular). Since then 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:

1.Formed a Green Banking Policy Implementation Unit comprising (GBPIU) (Unit structure is annexed) of 10 (Ten) officials headed by one Deputy Managing Director & the unit is acting to implement Green Banking activities in the Bank.

2.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.

3.Executive Committee of the Board of Directors has been vested with the responsibility for reviewing & monitoring the Bank's Environmental policy, strategies & Program.

4.Issued necessary circulars to implement In-house Environmental Management by all of its offices.

5.Allocated considerable amount of Fund for green Banking, Green Marketing & capacity Building.

6.Approved sizable Budgetary Provision for Climate Risk Fund for the Year 2013

7.Earmarked necessary steps/activities that are required to be addressed by the respective Divisions/Cells/Units for effective implementation of Green Banking & communicated to them.

8.Arranged workshop for the executives (50 Nos) of Head office & Branch level.

9.Arranged workshop for desk level 55 Credit officers of Branch level (48 Branches).

10.200 (Two Hundred) Officers were trained on this subject in their foundation training Course.

11.Regularly reporting the progress of implementation of Green Banking Activities to Bangladesh Bank on quarterly basis

12.A general instruction has already been circulated to the employees for efficient use of electricity, water, paper and reuse of equipments. Preparation of "Green Office Guide" is in progress.

13.Deployed one dedicated full time official who will is acting as assistant co-coordinator in Green Banking Policy Implementation Unit (GBPIU) of Head Office.

14.Bank has opened a separate Web Page for disclosing latest progress of its implementation on regular basis.

15.All of its Branches are operating fully under online banking systems.

16.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.

17.Rigorous program to educate client is underway.

18.The Bank has laid due importance on introducing green financing through encouraging:

a.Eco-friendly business activities & energy efficient industries.

b.Environmental infrastructure such as renewable energy project, Clean Water Supply Project, Waste Water Treatment Plant, Solid & hazardous wastage disposal plant, Bio-gas Plant, Bio-Fertilizer Plant

c.Bank has already financed 02 (Two) ETP amounting Tk. 445.46 Million & on 18 (Eighteen) project having ETP nos of amounting Tk. 7383.30 Million (as of 31-03-2013)

d.Bank has already financed 03 (Three) Bio Gas plant amounting Tk. 604.78 Million (as of 31-03-2013)

e.Bank has already financed 01 (One) Solar Panel amounting Tk. 132.78 Million (as of 31-03-2013)

f.Bank also financed 18 (Eighteen) Brick field using 5 (Five) HHK & 13 (Thirteen) Zigzag kiln technology amounting Tk. 581.48 Million (as of 31-03-2013) as project loan & working capital.

g.Consumer Loan program for promoting environmental practices among the clients.

19.Moreover, for in-house environmental management Bank has instructed to all officials of Branch level & Head Office level (See circular in details).

a.To take measures to save electricity, energy, water, paper and stationery consumption. As such progress report of the consumption pattern of paper, stationery, electricity, energy, water etc. is required to be prepared and reviewed periodically (at least monthly ) by the branches and Head Office divisions for taking necessary appropriate measures for improving efficiency i.e. utilization of resources.

b.In place of relying on printed documents, on line communication should be extensively used (wherever possible) for office management to save papers.

c.Installation of energy efficient electronic equipments and automatic shutdown of computers, fans, lights, Air Coolers etc shall be implemented in consultation with concerned division of Head Office gradually for reducing electricity consumption. Replacement of normal bulbs in branches/offices of the banks with energy saving bulbs may be taken as an immediate step in this regard.

d.Making use of solar energy at the premises as an alternative source of electricity may be initiated in consultation with and approval from concerned authority of the Bank.

e.Preserve maintenance schedule of Generator and Air Conditioner and other major electrical and electronic equipments for monitoring its performance as well as fuel/energy efficiency.

f.All officials of the bank are advised to ensure that their PC, Fan and other office equipment is turned off whenever those equipments are not in use for prolonged period of time. Office schedule should be maintained properly so that unnecessary stay in Branch/office could be avoided and as such office period should be utilized effectively.

g.In procurement of vehicle and other electrical and electronic equipments, fuel/energy efficiency should be considered with priority.

h.Take steps to save fuel from corporate business travel.

i.Create awareness among the employees for efficient use of electricity, paper, stationery, water, fuel and reuse of equipments and paper. Officials are encouraged to print both side of a page for draft copy.

j.All divisions should focus on minimizing resources at every possible aspects of work. All officials of the bank are advised to discharge their duties in environmentally responsible ways.

20.Formulated strategies (Draft) to design specific policies for different environmental sensitive sectors Such as 1. Agri Poultry, 2. Agri Dairy, 3. Textile, 4. Pulp & Paper, 5. Cement & 6. Tannery & Leather industry (Draft of these 6 sectoral guideline has already been completed which to be approved by Board shortly.

21.Established 6 (Six) Branches using solar energy (partially) & attempt are being undertaken to open new Branches based on solar energy, where possible.

22.To address Environmental Risk & other social issues, ERM (Environmental Risk Management) Guideline issued by Bangladesh Bank (See ERM Guideline) shall be used as specific guideline manual. Besides, regulatory directives from different authorities of GOB shall also be followed to lessen Environmental risk issues.

23.Circulated categories of industries to all Branches & Divisions of Head Office as per Environmental Conservation Rules (ECR) 1997 (See Circular in details) regarding conservation of Environment, Improvement of standard and control of environmental pollution from various sources.

24.Circulated a reminder letter to all Branches and Divisions of Head Office for completing EnvRR (Environmental Risk Rating) in addition to Credit Risk for all existing/prospective Borrowers (See Circular in details).