Green Banking Disclosure of Private Commercial Banks in Bangladesh

Abstract

Green banking is a normal banking activity with a focus on environment & society. Green banking was introduced to make the financial sector more aware of the changing climate and carbon footprint. In green banking, banks are required to do in-house management, which includes less use of paper, renewable energy, water management, use of solar energy etc. Sustainable development and preservation of the environment are now recognized globally as overriding imperatives to protect the planet from the ravages inflicted on it by mankind. Green Banking includes all the environmental or ecological factors with an aim to protect the environment and natural resources. Corporate Social Responsibility (CSR), Environment Risk Management (ERM) is part of green banking. Green Banking is also known as sustainable financing. In Bangladesh environment is rapidly falling down due to unawareness. In developing countries like Bangladesh commercial banks are the major contributor to the economy. The central bank of the country Bangladesh Bank introduces Green Banking for all the banks and financial institutions in 2011. As per Bangladesh Bank the Board of Director, CEO and Regional Manager are responsible to monitor the green banking activities. So commercial banks made a Green Banking Unite (GBU) to control the green banking activities. By green banking, the organization gets a polite acceptance to their stakeholders. As per Bangladesh Bank policy standard all banks and financial institutions have to do quarterly report on green banking and have to update that information on their annual report. Green Banking is still in a primary stage in Bangladesh.