Green Banking

Green Banking

The environment of the world is facing serious threat because of environmental pollution and climatic change. Rapid climatic changes is causing negative impacts on agriculture, forests, water resources, human health, bio-diversity, etc. Unusual rising of green house gas, unlawful destruction of forests , unplanned use and misuse of natural resources are the main causes of environmental pollution and climatic change. Environmental hazards have been occurred through air and water pollution, scarcity of water, narrowing river channels, faulty disposal of hospital, industrial and household waste, destruction of forest, earth filling of ponds and water bodies. The environment of Bangladesh is also deteriorating rapidly. Collective measures by all quarters are necessary to protect the environment pollution and environmental hazard. As the most vulnerable among the countries under the threat of climatic change risk, the financial institutes of Bangladesh also should play important role to prevent the environmental hazard worldwide.

Banking sector performs a vital role in the economy of a country. Industries founded by bank finance make dynamics of the economy, but simultaneously, the environmental pollution have been occurred by their production, process and related activities. Besides, banks should also ensure optimum use of natural resources like paper, toner, gas, water, electricity, fuel etc. The people engaged in banking sector could be able to perform in environmental safety in versatile ways. Following the various steps worldwide for prevention of environmental hazards, banks should be more careful in the development of their internal environment, as well as they could be more conscious to influence their partners, clients, stake-holders in such activities.

Objectives of Green Banking

The core objective of green banking is to ensure customer services, finance, protection of internal environment of management through adoption and compliance of environment friendly banking policy. Other objectives are –

  • Playing direct role for protection of environmental pollution at national and international level through adoption of environment friendly banking policy.
  • Encouraging project finance in environment friendly projects and discouraging the projects detrimental to good environment.
  • Adoption of Social commitment and ethics consciousness based banking policy.
  • Ensure the optimum use of gas, water, electricity, office-stationery, etc.
  • Increasing the use of on-line communication, on-line customer service, ATM, etc.
  • Protection of forest resources through optimum use of paper and toner.
  • Increase environment friendly activities in customer service, financing, internal environment of management, i.e growth in on-line customer service, ATM, etc.
  • Development of environment consciousness among bankers and customers.
  • Priorities the environment friendly and energy saving technology in official procurement.
  • Provide sponsorship for the development of public consciousness through encourages the environment friendly activities.
  • Publishing and communicating memo, circular, statement through web mail / web site without normal printing.