How Trust Bank is putting sustainability at the heart of banking
With innovative green finance solutions and a strong ESG framework, Trust Bank is leading the charge toward a sustainable and climate-resilient Bangladesh
Sustainability, to me, means conducting activities in a way that does not harm the environment or deplete natural resources, while supporting long-term ecological, social, and governance balance.
In Bangladesh's context, sustainable finance is any financial service whether investment, banking, insurance, trading, or advisory that explicitly integrates environmental, social, and governance (ESG) criteria into business or investment decisions. The goal is lasting benefits for both clients and society at large.
In practice, sustainable finance encompasses green banking, sustainable agriculture, sustainable MSMEs, and corporate social responsibility initiatives that are socially responsible and environmentally conscious.
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I believe the government and regulatory framework in Bangladesh provide a strong foundation to encourage sustainable finance. The Sustainable Finance Department of Bangladesh Bank has prioritised initiatives that address environmental, social—including gender equality—economic, and governance issues.
Through policies and schemes, including a Refinance Scheme for Environment-Friendly Products, the central bank enables banks and financial institutions to access low-cost funds for financing renewable energy and other eco-friendly projects. These measures make sustainable finance more accessible and attractive to the market.
Speaking of market demand, I have seen it steadily rise over the years. Environmentally friendly products are gaining acceptance as businesses and investors increasingly recognise the importance of sustainable development. Today, there is strong demand for financing renewable energy systems, biogas plants, certified energy and resource efficiency projects, LED manufacturing, recycling plants, jute product manufacturing, eco-friendly bricks, and green industries, among others.
By June 2025, sustainable finance disbursements in Bangladesh reached Tk343,170.81 million, accounting for 54.45% of total loan disbursement. Green finance, a subset, has also grown impressively, reaching Tk14,571.26 million, or 11.04% of total term loans.
Yet, challenges remain. One of the biggest barriers is the lack of technical knowledge and awareness. Many projects require certifications from national or international agencies, such as energy audits or LEED certification for green buildings, and banks often perceive these as risky due to unfamiliarity with the requirements. High implementation costs can further deter smaller enterprises.
To overcome these barriers, we need focused training, knowledge sharing, and awareness campaigns for all stakeholders in the financial ecosystem. Only then can sustainable finance realise its full potential in Bangladesh.
At my bank, integrating ESG into lending and investment decisions is not optional—it is a core principle. We follow Bangladesh Bank's guidelines and Sustainable Finance Policy, which incorporates green finance, CSR, agriculture, and MSME financing. Every credit proposal undergoes Environmental and Social Due Diligence (ESDD) in line with ESRM guidelines. If a project is assessed as high-risk, it is reviewed by the Board or Executive Committee before approval. This rigorous approach ensures that our financing supports environmentally and socially responsible development while safeguarding the stability of the financial system.
I have seen firsthand the impact of these initiatives. For example, Trust Bank financed the creation of a 'Solar Village' in Hawolipara, Jenaidah, through ARS Bangladesh Limited. We have also financed biogas plants and solar home systems, making us a pioneer in renewable energy financing. In Gulshan, we funded the LEED-certified City Skype Building, a landmark green building. Through digital banking and mobile financial services, we now reach over 4.9 million people nationwide, directly promoting financial inclusion and sustainability.
Looking ahead, I see sustainable finance becoming central to Bangladesh's economy over the next five to ten years. It will play a key role in mobilising private capital to support climate-neutral, low-carbon, and resource-efficient initiatives. Our work aligns with global sustainability goals, including the UN SDGs and the Paris Climate Agreement. With progressive policies and growing awareness, I am optimistic about the transformative impact sustainable finance can have on both society and the economy.
Finally, my advice to businesses and financial institutions starting their sustainability journey is simple: put sustainability at the heart of every decision. Environmental management should be a priority, especially for banks, which are critical intermediaries in financing economic activities. We must address ecological and social risks proactively, and see sustainability not as a choice, but as a responsibility.
By investing in green finance and responsible CSR initiatives, we can reduce environmental threats, mitigate climate change, and promote equity and inclusion. The global climate crisis—from droughts and floods to rising sea levels—demands urgent collective action, and the banking sector must lead the way. Sustainable finance is more than a strategy; it is our contribution to preserving life on this planet.
