Environmentally and Socially Responsible Business (ESRB) Practices Guideline for the Banking Sector
Project Coordinator : Mr. Iftekar Ahmed
Project Duration : March, 2005- May, 2005
Development Partner : KATALYST
BEI, with support from KATALYST, developed an environmentally and Socially Responsible Business (ESRB) practices guideline for the banking sector. Taking into account of the relationships between banks and other financial institutions on one side, and private enterprises on the other, both in terms of asset/lending and liability/deposit basis, these frequent interactions offer plenty of opportunity to address and promote Environmental Socially Responsible Business (ESRB) practices. Financial institutions, therefore, had a tremendous potential to play an important role in disseminating information among their commercial clients and in stimulating them into sustainable business practices.
Empirical evidence suggests that the level of awareness and understanding of ESRB practices is not very prevalent among Bangladeshi private enterprises. Many multinational banks, and even some foreign-owned banks, in Bangladesh had already adopted Corporate Social Responsibility (CSR) requirements into their loan policy, as part of their sustainable business strategy and risk assessment in terms of “clean lending”. In contrast, the majority of local banks are not aware of this important tool for promoting sustainable business.