Bank Asia committed to sustainable financing

Bank Asia Limited has emphasized on investment in both green and sustainable activities aiming to encourage environment-friendly initiatives for mitigating the effects of climate change as well as achieving net zero goal by 2050, officials have said.
For averting the worst impacts of global climate change, Bank Asia has already set up 'Dedicated Sustainable Finance Help Desk' at its 10 branches in different parts of the country to strengthen the sustainable finance activities.
Besides, the bank organises learning sessions for its officials regularly to build awareness about such financing through discussion on the policy and relevant guidelines to increase bank's loan portfolios in the area.
"We're dedicating a good portion of our time to exploring the potential of sustainable finance, and towards achieving this goal, we'll stretch our efforts to its maximum level," Mr. Shafiuzzaman, President and Managing Director (Current Charge), said while explaining the bank's future strategy.
He also said Bank Asia is always committed to playing a pivotal role in economic development of the country as well as to increasing investments in the green and sustainable initiatives gradually in the coming days.
The bank is also committed to achieving net zero goal within the timeframe to tackle climate change, he added.
Since inception, Bank Asia has pioneered many new ventures including financing of Engreen Sarishabari Solar Plant, the country's first on-grid solar plant, set up at Sarishabari Sales and Distribution of Power Development Board (PDB) in Sarishabari upazila under Jamalpur district in 2017.
As per Paris Agreement, emissions need to be reduced by 45 per cent by 2030 and reach net zero by 2050.
"Our bank always focuses on sustainability issues not only from the business point of view but also on the environmental, social and governance (ESG) front in order to help the country achieve the Sustainable Development Goals (SDGs) by 2030," the top executive noted.
Meanwhile, green finance by Bank Asia jumped by more than 50 per cent to nearly Tk 43 billion in the outgoing fiscal year.
The bank provided such financial facility to nearly 100,000 borrowers in FY23 through 135 branches, 15 sub-branches, five Islamic banking windows, and nearly 5,500 agent banking outlets across the country. The number of borrowers were around 12500 in FY22.
As part of the green finance, Bank Asia is now investing in various sustainable initiatives including apparel and clothing sector, bio-gas plants, solar power, waste management and effluent treatment plants and energy saving brick kilns.
From January 2022 to June 2023, the bank has provided loans amounting to Tk 2.03 billion in renewable energy as well as Tk 568.84 million in energy & resource efficiency.
Besides, Bank Asia disbursed more than Tk 12 billion to 105,321 rural farmers from January 2022 to June 2023, out of which was approved around Tk 900 million to 15,424 farmers through Online Credit Approval System (OCAS), according to the executive.
Such finance has helped the business entities to improve their energy & resource efficiency along with reducing their operating costs to a great extent.
For the contributions to the sustainability issues, Bank Asia has been ranked among the top ten banks in sustainability rating conducted by the Bangladesh Bank for two consecutive years, 2020 and 2021.
All scheduled banks will have to participate and contribute to the execution of Intended Nationally Determined Contributions (INDCs) for attaining respective SDGs. In the INDC, Bangladesh is committed to reducing Green House Gas (GHG) emissions by 5 per cent unconditionally from Business as Usual (BaU) levels by 2030 or a conditional 15 per cent reduction in GHG emission from BaU levels by 2030.