Promoting green businesses in Bangladesh

Production of goods and services, investment, laws and policies all have their respective impact on environment. There are many eco-friendly financial instruments available in the world today. Some of these are eco-investment, green investment, green banking, green stocks, green bonds, green mutual funds, green savings accounts, green money market accounts and green certificates of deposit.
As a part of environment-friendly investment, the companies in recent years focus not only on profit maximisation but also socially responsible approach where businesses are not responsible to stockholders and stakeholders. Among the stakeholders, the environmental issues are focussed on  investment pattern of a company. Generally it is the obligation of firms to use its resources in ways to benefit the society. An approach that contributes to sustainable development by environmental benefits for the stakeholders is the core activity of socially responsive businesses and trade communities.
It is now unequivocally recognised that businesses and corporate houses are now moving beyond the strict consideration of profit maximisation to an area also known as Corporate Social Responsibility (CSR). One important aspect of CSR is that it is not legally binding; rather it is voluntary social and environmental steps for socially-responsive business and ethics. Relevant uses of terminology refer to CSR reporting including such terms as 'sustainable reporting', 'social responsible accounting', 'social accounting', 'corporate social disclosures' and 'social and ethical accounting'. It simply refers to external reporting of social, ethical and environmental aspects of business organisations. It is also considered to be a set of actions designed to promote sustainable development in three aspects--economic, social and environment.
Bangladesh is one of the most environmentally vulnerable countries in the world today. The present environmental condition of the country is not at all in equilibrium. Severe air, water and noise pollutions are threatening human health, ecosystems and economic growth of Bangladesh. Air pollution is caused by increasing population, burning fossil fuels, industrialisation and associated motorisation. The water pollution is caused due to industrialisation. The underground water of Bangladesh has been polluted due to arsenic poisoning. The inhabitants of major cities of Bangladesh are also exposed to high level of noise pollution. Environmental degradation of the country is also caused due to poverty, over-population and lack of awareness on the subject. It is manifested by deforestation, destruction of wetlands, soil erosion and natural calamities.
In Bangladesh's stock market, there is no single company which offers green stocks. But several listed companies in the DSE and the CSE are focused on social and environmental issues which are also part of the stakeholders of the companies. There are many companies working on environmental issues. For example, Aftab Automobile Limited (DSE: AFTABAUTO) introduced HINO buses which are widely operated on all the routes of the country. The company has also introduced environmental friendly (CNG-driven) AK1JMKA model HINO buses for the first time in the country. To provide the highest luxury on roads, Aftab Automobiles Limited has recently introduced 'HINO RM2KSKA' model which is the most luxurious transport in the country.On the other hand, Berger Paints Bangladesh Limited (DSE: BERGERPBL) is continuing with environment-friendly range of 'BreatheEasy'- the first-ever odour-free and eco-friendly paint in Bangladesh. Two more products were launched in 2012. The new products were 'BreatheEasy Wall Putty' and 'BreatheEasy Water Sealer'. The BreatheEasy series are environment-friendly since these have low volatile organic compound (VOC). Its 'stain-free' and 'anti-bacterial' features protect the wall from stains and fungi.
In the services and real estate sector, Eastern Housing Limited (DSE: EHL) states the mission is to build and develop environment-friendly apartments, commercial buildings and land projects using the highest standards of safety, architecture, engineering and green technology. Manzurul Islam, Chairman of the Eastern Housing Limited said that "In order to ensure environment-friendly sustainable real estate, we have emphasised on the usage of environment-friendly building materials, effective wastage management and efficient energy systems." For the distinguished shareholders, the company focusses on environment-friendly sustainable real estate by usage of environment-friendly building materials, effective wastage management and efficient energy systems.
Dhaka Electric Supply Company Ltd. (DSE: DESCO) encouraged the use of renewable energy and ensure installation of eco-friendly solar panel with capacity of around 2.7 MW for 2,491 numbers of consumers at their premises up to June 30, 2012 in line with the government policy. DESCO installed solar panel with capacity of 17.04 kW at its own 48 installations up to June 30, 2012.
As a non-banking financial institution, IDLC Finance Limited (DSE: IDLC) is more concerned about environment. Selim R. F. Hussain, CEO & Managing Director told the stakeholders that IDLC's external environmental efforts mainly revolved around continuing tree plantation initiative, which was begun a few years ago, and the launching of an environmental awareness campaign in  different schools. This initiative was aimed at educating children on matters such as environmental pollution and mitigation, responsible consumption of natural resources, adoption of the 3R principle of Reduce, Reuse and Recycle to minimise wastage etc. IDLC covered 11 schools and is receiving very positive feedback from these schools.
In the ceramics sector, Monno Ceramic Industries Limited (DSE: MONNOCERA) is a strong supporter of environment, using, for example, only natural non-toxic materials in its porcelain, and only recycled pulp in its packaging disposal of waste factory products in accordance with the Federal and the European standards. Monno does not employ children or discriminate between genders, and has an equal opportunity policy. It also cares for the community, providing welfare, vocational training, basic education for those less well-off, together with a home for the underprivileged children. Those graduating from these programmes are helped to find jobs according to their individual abilities. Monno's own ethical and social environmental policy is in accord with that of its customers and has satisfied the requirements of all factory and ethical audits independently carried out on their behalf.
Trust Bank has started its green journey after having green banking, development considering environment, conserving environment and biodiversity and environmental risk management guidelines.
The Bangladesh Bank issued guidelines for environmental risk management and green banking in 2011 and is probably the only central bank which has issued such an indicative guideline for green banking. The guidelines aim to ensuring environment- friendly business practices by banks and financial institutions to incorporate environmental risks into Core Risk Management (CRM) and to promote sustainable financial and economic growth.
There are other companies named Alltex Industries Limited (DSE: ALLTEX), Anlima yarn Deying Limited (DSE: ANLIMAYARN), Bank Asia (DSE: BANKASIA), Envoy Textile Limited (DSE: ENVOYTEX), Prime Bank Limited (DSE: PRIMEBANK), Apex Spinning & Knitting Mills Limited (DSE: APEXSPINN), Lanka Bangla Finance Limited (DSE: LANKABAFIN), the Dacca Dyeing & Manufacturing Co. Limited (DSE: DACCADYE), National Bank Ltd (DSE: NBL), Generation Next Fashions Limited (DSE: GENNEXT), Malek Spinning Mills Limited (DSE: MALEKSPIN), Metro Spinning (DSE: METROSPIN), Prime Textile (DSE: PRIMETEX), Beximco Company (DSE: BEXIMCO), Saiham Textile (DSE: SAIHAMTEX) and Square Textile (DSE: SQUARETEXT) working for environmental policies which cover actual statements of policy, investment appraisal to include consideration of the environment, statements indicating that pollution from operations have been or will be reduced, disclosing the company's energy polices.
Environmental product process is covering waste(s) management, eco-efficiency, pollution and emissions, noise, spills, visual quality including attempts to identify, improve, control, treat or prevent carbon sequestration, climate change, products and product development, improvements in products (including products that care for and help protect the environment), air emission information, water discharge information, research on new methods of production to reduce environmental pollution, pollution prevention technologies, pollution control of industrial process, pollution reductions in the conduct of business operations, solid waste disposal information, conservation of natural resources, recycling plant of waste products, installation of effluent treatment plant, land reclamation and forestation programmes, raw material conservation, designing facilities harmonious with the environment, undertaking wildlife conservation and noise.
The environmental energy is related to energy saving and conservation, use/ development/exploration of new sources, efficiency, insulation etc., utilisation of waste materials for energy conservation, discussion of the company's efforts to reduce energy consumption, voicing the company's concern about energy shortage, direct energy use, indirect energy use, disclosing energy savings resulting from product recycling, disclosing increased energy efficiency of products and receiving an award for an energy conservation programme.
The environmental financial focus on discussion of areas with financial/economic impact, discussion of environmental-economic interaction, contingency provisions, environmentally-related loans, grants, costs of purchasing and installing environment- friendly machines and equipment, maintenance and consultancy costs, past and current expenditure for pollution control, future estimates of expenditures for pollution control equipment and facilities and a record of allocation of specific fund.
The writer is Lecturer, the Department of Business Administration, Daffodil International UniversityWebsite: http://faculty.daffodilvarsity.edu.bd/profile/bba/jewel-kumar.html