Written by The Banking Post
BRAC Bank PLC has released its 2024 Sustainability and Impact Report, making it one of the first banks in Bangladesh—and across South Asia—to voluntarily disclose all categories of greenhouse gas (GHG) emissions, including the most complex Scope 3 Category 15: financed emissions.
📊 Total Emissions Breakdown (tCO₂e)
| Scope | Description | Emissions (tons) |
|---|---|---|
| Scope 1 | Direct from internal operations | 1,630 |
| Scope 2 | Indirect from electricity usage | 16,671 |
| Scope 3 | Value chain (primarily loans) | 1,459,167 |
| Total | Combined footprint | 1,477,468 |
| Net (after clean energy offsets) | 1,459,356 |
💡 Financed Emissions: The Key Driver
Scope 3 accounts for over 96% of the bank’s total footprint, driven by high-emission sectors financed by BRAC Bank.
Top 3 sectors:
- Petroleum & Chemicals
- Food & Beverages
- Metal Manufacturing
Despite receiving just 21% of total loan disbursement, these sectors contribute 61.5% of total emissions.
🌱 Clean Energy Investment & Strategy
BRAC Bank offset 18,112 tons of carbon emissions through solar and clean energy initiatives in 2024. A key highlight includes funding a 68 MW grid-tied solar power plant, expected to prevent over 70,000 tons of carbon annually.
Total Transition Finance Disbursed: BDT 53,357 million
Purpose: Develop climate-smart technologies, support decarbonization and high-emission sector transformation.
📐 Reporting & Risk Tools
To ensure precision and compliance, BRAC Bank aligned with:
- GHG Protocol, GRI, IFRS S-1/S-2 (ISSB)
- Partnership for Carbon Accounting Financials (PCAF)
- Climate Vulnerability Index (CVI)
- Sector-specific carbon intensity metrics
GHG intensity and sectoral exposure are now integrated into the bank’s credit risk framework, enabling climate-aligned lending strategies and future green financial products.
🌍 A Regional Benchmark
BRAC Bank is now positioned as a climate accountability leader in Bangladesh’s financial sector and is well-placed to engage:
- ESG-driven investors
- Global development agencies
- Green bond markets
The bank’s climate commitment also includes:
- Sector-specific carbon reduction roadmaps
- Real-time emissions monitoring tools
- Carbon literacy for clients and staff
🧭 What It Means
This landmark disclosure reflects a paradigm shift—not just pledges, but data-backed action to decarbonize Bangladesh’s economy. BRAC Bank’s proactive stance lays the groundwork for financial-sector climate reform and a collaborative path forward with investors pursuing measurable environmental impact.
