UNITED COMMERCIAL BANK LTD.
Credit Risk Management Division
Corporate Head office, Dhaka
Instruction Circular # 1094 (A)
December 29, 2011
Sub: Green Banking Policy
The globe is encompassing immense environmental effects due to the activities of business, industries and financial houses. Moreover, the effects of climate change also create specific environmental issues for the enterprises and living beings at large. On the other hand, in-house consumption and use of paper, electricity, water, fuel, stationeries, equipments, technologies, etc. of the business and financial institutions pollutes the environment in different ways and capacities. As such, the society demands that the Banks and financial institutions should take responsibility for keeping the environment green and safeguarding the planet. Bangladesh is enormously affected from the events of environmental and climate change in recent years. Realizing the fact, the Board of Directors in its 325th meeting held on 28.12.2011 has approved a Green Banking Policy for the Bank.
The Audit committee of the Board of Directors will act as the high-powered committee, which will supervise the overall activities of the Green Banking Unit/Cell and review the policies, strategies and programs of the Bank. A separate Green Banking Unit/Cell has also been established comprising members from General Banking and Development Division, Corporate Affairs Division, Corporate Banking Division, Credit Risk Management Division, General Services Division, Human Resources and Management Division and Information and Technology Division and headed by a Deputy Managing Director. The Unit/Cell will have the responsibility of designing, evaluating and administering related green banking issues of the bank. The Unit/Cell will report to the high-powered committee of the Board as well as to Bangladesh Bank quarterly. As the phase-based activities of Green Banking cover wide range of area, responsibilities of different Divisions are specified in the Policy. The purposes of Green Banking Policy of the Bank are to ensure necessary measures to protect environmental pollution while providing service or financing customers as well as to improve in-house environment management through efficient use of various resources (i.e. reduce usage of paper, water, use energy efficient lights and equipments, etc.) at Head Office, Branches and other link offices.
Apart from enrichment of the external environment, Green Banking will help improve the performance of the Bank in the following ways:
Improve the image of the Bank by showing and serving its commitment to the environment
Significantly reduce operational cost due to less consumption of office stationeries, energy and water.
Enhance productivity as well as efficiency of the employees through skilled & optimum usage of technology
Reduce possible health hazards by installing eco-friendly equipments Save significant portion of Forestry by reducing paper usage Lessen emission of Green House Gases (GHGs) through making less corporate travelling through teleconferencing as well as arranging transport pool for the employees
Help develop customer’s consciousness on environment by arranging awareness development program
Reduce the extent of Non-Performing Loans (NPLs) if investment goes to less risky projects
The Green Banking Policy, which comprises of five chapters, is to be implemented in 3 (three) phases within December 31, 2013 as per the direction of Bangladesh Bank from time to time and will continue further. Apart from an introduction and an ending chapter, activities under different phases are elaborated in three chapters.
The Green Banking Policy also encompasses the Environmental Risk Management Policy and covers the overall environmental concerns – arising out of both external or internal sources and the respective measures to...