BRAC Bank says 83% of lending portfolio aligned with sustainable finance
BRAC Bank PLC has published its ESG and Sustainability Report 2025, outlining the bank's sustainability performance and impact across People, Planet and Prosperity.
Published under the theme "Driving Innovation, Advancing Inclusion and Creating Impact", the report highlights the bank's progress in sustainable finance, climate action, financial inclusion, social impact, digital innovation and responsible governance, according to a press release.
It demonstrates how environmental, social and governance considerations are increasingly being integrated into the bank's strategy, financing, risk management, operations and decision-making.
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A key feature of the report is its strengthened alignment with globally recognised sustainability reporting standards. It incorporates disclosures aligned with the International Sustainability Standards Board's IFRS S1 and S2 standards, alongside the Global Reporting Initiative Standards and the Partnership for Carbon Accounting Financials' Global GHG Accounting and Reporting Standard.
BRAC Bank calculates its financed greenhouse gas emissions using the PCAF methodology. Its assessment has been endorsed by PCAF and publicly disclosed on the organisation's platform.
The report also highlights BRAC Bank's issuance of Bangladesh's first Tk1,000 crore social bond, aligned with the International Capital Market Association's Social Bond Principles 2025.
The bond supports priority social sectors, including cottage, micro, small and medium enterprises, women-led businesses, agriculture, affordable housing and essential services. It also seeks to broaden opportunities for impact-oriented investment in Bangladesh's capital market.
In 2025, 83% of BRAC Bank's lending portfolio was aligned with sustainable finance, significantly exceeding Bangladesh Bank's regulatory benchmark of 40%.
The bank also financed approximately Tk5,045.3 crore in low-carbon and climate-related technologies and supported two utility-scale solar projects with a combined capacity of 135 megawatts.
The projects are estimated to prevent approximately 150,000 tonnes of carbon dioxide emissions annually.
The report further highlights BRAC Bank's recognition by Bloomberg as Bangladesh's top sustainable bank, with an ESG score of 3.94. Bangladesh Bank also recognised it as one of the country's top sustainable banks for the fifth consecutive year.
"Sustainability is integral to how we allocate capital, manage risk and create long-term value," said Tareq Refat Ullah Khan, managing director and CEO of BRAC Bank.
"Our ambition is to continue raising the standard for responsible banking in Bangladesh by expanding inclusive finance, strengthening climate resilience and using innovation to create measurable impact for people, the economy and the environment," he added.
The ESG and Sustainability Report 2025 is available in the Investor Relations section of BRAC Bank's website
