The report reveals that BRAC Bank and City Bank have consistently featured on the list since the inception of the rating by Bangladesh Bank in 2020. Among non-bank financial institutions (NBFIs), IDLC Finance has maintained its position as one of the leading sustainable financial companies.

The number of banks and financial institutions included in the list has grown to 13 in 2023, up from 11 in the previous year, demonstrating an increased commitment to sustainable practices within the financial sector.

Bangladesh Bank introduced the Sustainability Rating four years ago to encourage lending to green, environment-friendly initiatives and sustainable agriculture. This initiative aims to promote financial activities that have a positive impact on the environment and society.

The latest rating also includes Eastern Bank, Exim Bank, Jamuna Bank, Mutual Trust Bank, Trust Bank, and Uttara Bank among the top sustainable banks. In the finance companies category, IPDC Finance and United Finance have been highlighted for their sustainable practices.

The central bank’s criteria for sustainable financing include support for green projects, sustainable agriculture, and financing for cottage, micro, small, and medium enterprises (CMSMEs). Additionally, the rating considers the lenders’ efforts in providing sustainable finance access for women, implementing in-house green banking practices, and complying with environmental and social risk management standards.

Bangladesh Bank evaluates the sustainability performance of financial institutions by analyzing factors such as board directors’ interventions, capacity-building initiatives, and the disclosure of sustainable finance practices. This comprehensive evaluation ensures that the recognized institutions are not only promoting sustainability through their lending practices but also embedding it within their organizational culture.