City Bank: Pioneering a greener, more resilient future

I see the future of sustainable finance in Bangladesh as both promising and transformative. For banks like ours, the path forward is clear: channeling capital into projects that are not just economically viable, but environmentally responsible and socially inclusive. 

Bangladesh Bank has laid a strong foundation with its green and sustainable finance taxonomies and ambitious targets. As a result, the financial sector is gradually moving from a compliance-driven mindset to an opportunity-driven one, where renewable energy, energy efficiency, climate adaptation, and inclusive financing are emerging as critical growth areas.

Being one of the most climate-vulnerable countries in the world, we cannot ignore the risks posed by floods, cyclones, and other climate shocks. These events threaten assets, disrupt business models, and challenge traditional credit decisions. At the same time, the global push toward decarbonisation means banks must integrate climate considerations into every layer of their operations—from risk management and product design to client engagement.

Yet, climate change also brings immense opportunity. The shift to a low-carbon economy opens up new avenues for investment: renewable energy, resilient infrastructure, smart grids, energy-efficient buildings, and more. 

Infograph: TBS

Sustainable finance is no longer a niche activity—it is becoming mainstream. Climate funds, blended financial instruments, and rising consumer demand for eco-friendly solutions are accelerating this transition. Banks that act early not only advance national and global climate goals but also gain a competitive edge. With Bangladesh Bank's progressive targets and supportive refinance schemes, sustainable finance is set to grow rapidly, becoming a driving force in our journey toward a greener, more resilient economy.

At our bank, we have worked to lead this transition. Over the past five years, we have consistently been recognised as one of Bangladesh's top sustainable banks. In 2024, when the central bank published its first sustainability ranking, we proudly secured the top spot. Our ESG performance was also acknowledged in Bloomberg's ESG Rating 2024, highlighting our commitment to environmental, social, and governance standards.

Last year, we disbursed Tk3,336 crore in Green Finance and Tk40,234 crore in Sustainable Finance—far exceeding the central bank's targets. We are helping families access cleaner and more affordable power through renewable energy, including 132 MW of solar projects and the country's largest 60 MW wind power plant in Cox's Bazar. 

Through sustainable agriculture, we support farmers adopting eco-friendly practices that protect livelihoods and improve yields. Green buildings and resource-efficient industries are creating healthier spaces to live and work, while support for small and medium enterprises empowers entrepreneurs, generates jobs, and uplifts communities. Every investment we make is not just financial—it is a step toward building a greener, more resilient future for Bangladesh.

Looking ahead, we aim to expand our sustainable finance portfolio even further. We plan to design sustainability-linked products tailored to different customer segments, creating lasting value for our stakeholders while advancing climate resilience, mitigation, and broader ESG priorities.

We are proud to be the first Bangladeshi bank to join the United Nations' Net Zero Banking Alliance. As part of this commitment, we have set emission reduction targets for priority sectors and are aligning investments with low-emission pathways. We are developing innovative products in renewable energy—both rooftop and utility-scale—industrial energy efficiency, electric mobility, climate-resilient agriculture, green housing, and more. 

We are also designing solutions to empower women customers and scaling concessional loans for environmentally friendly projects. ESG-linked loans will reward businesses adopting sustainable practices, while Sustainable Finance Help Desks, especially in rural areas, will guide clients toward green projects and improve access to low-cost funding.

Infograph: TBS

Of course, challenges remain. Awareness about sustainability is still limited, particularly among SMEs, and data gaps make it difficult to track environmental performance. Capacity in climate risk assessment, green technology, and project preparation needs strengthening, and pipelines of bankable green projects remain thin. Access to concessional funding is limited, and banks must balance financial returns with long-term environmental and social impact. 

These hurdles, however, are opportunities for innovation: investing in capacity building, improving ESG data systems, and deepening partnerships will help scale sustainable finance and support Bangladesh's green transition.

Regulatory support will play a key role in this journey. While Bangladesh Bank has been supportive, we need more incentives—such as increased low-cost refinance lines, concessional credit facilities, and tax or interest benefits—to encourage green investments. Mandatory sustainability disclosures aligned with global standards, integration of climate risk into risk management, and capacity-building initiatives for bankers are essential. 

The government can accelerate progress by creating an enabling environment for green project pipelines and facilitating access to global climate finance through streamlined accreditation. Partnerships with the Green Climate Fund and multilateral development banks will be critical to attract international investment and strengthen the banking sector's role in achieving national and global climate goals.

Sustainable finance is no longer an optional pursuit. For us, it is an opportunity to lead, innovate, and create lasting impact. By aligning our financial growth with environmental responsibility and social inclusion, we are not just funding projects—we are building a future that is greener, more resilient, and inclusive for all Bangladeshis.