Dhaka Bank: Shaping Bangladesh’s sustainable economy
Bangladesh’s future depends on sustainable finance—not as an abstract policy, but as a lifeline. As climate threats intensify, the flow of capital into renewable energy, resilient infrastructure and green enterprises will determine whether growth today can secure prosperity tomorrow
When I think about sustainable finance in the context of Bangladesh, I see it not as an abstract policy framework, but as an urgent necessity. Our country stands at the frontline of climate change—rising sea levels, stronger cyclones, and increasing resource constraints are not distant possibilities; they are realities we grapple with every year.
For us, sustainable finance means directing capital into projects that can fuel economic growth while safeguarding the environment, advancing social equity, and ensuring good governance. In other words, it is about protecting both today's development and tomorrow's opportunities.
That is why I believe investments in renewable energy, sustainable agriculture, and climate-resilient infrastructure are not optional luxuries, but imperatives. Every taka we channel into such areas is not just a financial decision; it is a shield for our people and our future.
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Policy and regulatory environment
Over the years, I have seen a significant shift in how our government and regulators approach sustainable finance. The Government of Bangladesh has clearly prioritised renewable energy—especially grid-connected solar projects—while also addressing plastic waste reduction and supporting sustainable MSMEs. These are promising steps.
Bangladesh Bank has also played a crucial role. Its Green Banking Policy Guidelines and Sustainable Finance Policy, along with refinancing schemes for renewable energy, energy efficiency, and environmentally friendly projects, have provided strong direction to the industry. Instruments such as the Green Transformation Fund, the Technology Development Fund, and refinance schemes for green products and SMEs have encouraged banks to adopt sustainability more seriously.
Looking ahead, I believe we need more targeted tax incentives, blended public–private financing models, and stronger capacity-building initiatives. These would help businesses and financiers integrate ESG (Environmental, Social, and Governance) principles more effectively. I am particularly optimistic about the Credit Guarantee Schemes that Bangladesh Bank plans to extend to Participating Financial Institutions (PFIs) for green and sustainable finance products. Such measures will expand financing opportunities and reduce risk for institutions willing to invest in sustainability.
Market demand for ESG-linked products
The demand for green and ESG-linked financial products is growing, particularly among export-oriented industries. Many of these companies must meet international ESG compliance standards to remain competitive in global supply chains.
The demand for green and ESG-linked financial products is growing, particularly among export-oriented industries. Many of these companies must meet international ESG compliance standards to remain competitive in global supply chains. A good example is the surge in interest around rooftop solar solutions—thanks to their affordability, grid connectivity, and attractive Opex models.
A good example is the surge in interest around rooftop solar solutions—thanks to their affordability, grid connectivity, and attractive Opex models. Institutional investors are also increasingly drawn to ESG-aligned portfolios.
That said, the domestic retail market is still at a nascent stage. To move forward, we must raise consumer awareness of the long-term value of sustainable investments. Without this, mass adoption will remain slow.
Barriers we face
Of course, the path is not without obstacles. The most pressing challenges are the lack of technical expertise, the perception that sustainable solutions are expensive, and the absence of standardised ESG data. Too many businesses still treat sustainability as a cost rather than an investment in long-term resilience.
Moreover, our capital markets for green bonds, sustainability-linked loans, and other instruments remain underdeveloped. This narrows the financing options available to businesses that want to make the transition.
Our approach at Dhaka Bank
At Dhaka Bank, we have taken deliberate steps to embed ESG criteria into every aspect of our decision-making. Environmental compliance, social safeguards, and governance standards are all assessed before we approve financing. Our Environment and Social Due Diligence (ESDD) matrix ensures that no project bypasses this scrutiny.
We have also set up a Sustainable Finance Help Desk to coordinate green lending and ensure compliance with Bangladesh Bank's reporting requirements. Our goal is to make ESG integration the norm across the entire portfolio, not just in niche products.
In practice, this means financing projects in renewable energy, particularly solar, as well as energy-efficient machinery, waste management, effluent treatment plants, eco-friendly construction, CMSMEs, ICT, and healthcare. One initiative I am particularly proud of is our "Oditiya Loan", designed to support women entrepreneurs.
Through Bangladesh Bank's refinance scheme, these loans come with a low 5% interest rate and even offer a 1% incentive for timely repayment. This facility empowers women to expand and modernise their businesses, directly contributing to social inclusion.
A case in point
One of the most inspiring examples of sustainable finance I have been involved with is our support for Saiham Knit Composite Ltd. (SKCL), a forward linkage enterprise of the Saiham Group of Industries. SKCL is a LEED Silver-certified green factory that received Tk. 1,562.98 million in financing from Dhaka Bank to acquire advanced, energy-efficient machinery.
This project, certified by SREDA and verified by Benchmark Solutions, significantly reduces carbon emissions while boosting resource efficiency. More importantly, it strengthens SKCL's global competitiveness, allowing it to maintain and grow partnerships with eco-conscious buyers like H&M. For me, this project exemplifies how sustainable finance can create a win-win: reducing environmental impact while driving commercial success.
As part of its long-standing CSR commitment, Dhaka Bank has been championing women's empowerment—most notably by sponsoring the Bangladesh Women's National Team for the past seven years, a support that has played a role in the team's recent success.
Looking ahead
I have no doubt that within the next five to ten years, sustainable finance will become fully mainstream in Bangladesh. Global supply chains are demanding higher ESG performance, and our exporters will have no choice but to embrace cleaner technologies.
Digital technologies will also revolutionise ESG reporting and monitoring, making data more transparent and actionable. Those institutions that adapt quickly will gain a competitive advantage, while those that lag behind risk being left out of global markets.
For businesses and financial institutions just beginning their sustainability journey, my advice is simple: start now. Even small steps—like improving energy efficiency, reducing waste, or ensuring better worker conditions—can yield immediate, measurable results. Engage with your banks early, because many of us, including Dhaka Bank, are ready to provide financial support and facilitate refinancing for sustainable initiatives.
Most importantly, stop thinking of sustainability as just a compliance requirement. It is a strategic pathway to resilience, growth, and global competitiveness. The sooner we embrace it, the stronger our economy and society will be—today and for generations to come.
