BRAC Bank unveils Bangladesh’s first independent IFRS S1 and S2 reports in accordance with ISSB standards

BRAC Bank has published the country's first independent IFRS S1 and S2 Report, marking a historic milestone in climate and sustainability risk disclosure under the globally recognised framework developed by the International Sustainability Standards Board (ISSB).

By releasing this pioneering report, BRAC Bank becomes the only bank in Bangladesh—and one of the few worldwide—to adopt the newly introduced IFRS S1 and S2 standards. This positions the bank as a leader in transparency, corporate responsibility, and climate governance, both nationally and internationally.

The IFRS S1 and S2 standards, introduced in 2023, establish a unified, investor-focused framework for disclosing sustainability and climate-related financial information. BRAC Bank has taken a bold step by voluntarily incorporating these standards into its 2024 reporting cycle, setting a precedent for financial institutions in emerging markets.

The report provides a comprehensive overview of how BRAC Bank identifies, manages, and discloses its exposure to sustainability and climate risks and opportunities. It details board-level ESG oversight, integration of sustainability into business strategy, climate risk management systems, and a full greenhouse gas (GHG) emissions footprint, including Scope 1, Scope 2, and Scope 3 emissions.

Significantly, the report includes financed emissions measured using the global PCAF (Partnership for Carbon Accounting Financials) methodology—an advanced climate impact assessment practice rarely adopted in developing countries.

This landmark report offers valuable insights for regulators, investors, development partners, and customers seeking future-ready, responsible financial institutions. It aligns with key national and international frameworks, including the United Nations Sustainable Development Goals (UN SDGs), Bangladesh's Nationally Determined Contributions (NDCs), and Bangladesh Bank's Green Finance Policy.

In the face of escalating environmental risks, BRAC Bank's initiative demonstrates how a local bank can embed global sustainability standards into its risk architecture, lending portfolio, and strategic planning. The bank is already advancing sector-level decarbonisation paths and enhancing climate stress testing capabilities.

By publishing this first-of-its-kind report in Bangladesh, BRAC Bank reinforces its leadership in climate governance and bolsters its credibility as a preferred partner for international investors and ESG rating agencies. The report also serves as a model for policymakers and regulators on localising and operationalising climate-related financial disclosures across the banking sector.

Tareq Refat Ullah Khan, Managing Director and CEO (Current Charge) of BRAC Bank, said,
"At BRAC Bank, transparency and accountability form the foundation of responsible banking. This report tells our full story—not just about profits, but about our impact on the planet. We believe this initiative will set a benchmark across the banking and corporate sectors of Bangladesh and inspire others to follow."

The full report is accessible to all stakeholders at: https://www.bracbank.com/download/BRAC-Bank-IFRS-S1-and-S2-Report-2024.pdf