BRAC Bank PLC said 83 per cent of its lending portfolio was aligned with sustainable finance in 2025, more than double Bangladesh Bank’s regulatory benchmark of 40 per cent, as the lender expanded financing for climate action, financial inclusion and responsible banking.
The bank disclosed the figures in its ESG & Sustainability Report 2025, published on Wednesday under the theme “Driving Innovation, Advancing Inclusion & Creating Impact.”
The report highlights how environmental, social and governance (ESG) considerations have been integrated into the bank’s strategy, financing decisions, risk management, operations and governance framework.
According to the report, BRAC Bank financed around Tk5,045.3 crore in low-carbon and climate-related technologies in 2025. It also supported two utility-scale solar projects with a combined generation capacity of 135 MW, which are estimated to avoid around 150,000 tonnes of carbon dioxide emissions annually.
A key highlight of the report was the bank’s issuance of Bangladesh’s first Tk1,000 crore Social Bond, aligned with the International Capital Market Association (ICMA) Social Bond Principles 2025.
The bond is aimed at supporting priority social sectors, including CMSMEs, women-led businesses, agriculture, affordable housing and essential services, while creating opportunities for impact-focused investment in Bangladesh’s capital market.
BRAC Bank said the sustainability report follows globally recognised reporting frameworks, including the International Sustainability Standards Board’s (ISSB) IFRS S1 and S2 standards, the Global Reporting Initiative (GRI) Standards and the Partnership for Carbon Accounting Financials (PCAF) Global GHG Accounting and Reporting Standard.
The bank calculates its financed greenhouse gas emissions using the PCAF methodology. The assessment has been endorsed by PCAF and publicly disclosed through the organisation’s platform.
BRAC Bank Managing Director and Chief Executive Officer Tareq Refat Ullah Khan said sustainability has become central to the bank’s capital allocation, risk management and long-term value creation.
“Sustainability is integral to how we allocate capital, manage risk and create long-term value,” he said.
“Our ambition is to continue raising the standard for responsible banking in Bangladesh by expanding inclusive finance, strengthening climate resilience and using innovation to create measurable impact for people, the economy and the environment.”
The bank was recognised as Bangladesh’s top sustainable bank by Bloomberg, receiving an ESG score of 3.94, according to the report. Bangladesh Bank also recognised the bank among the country’s top sustainable banks for the fifth consecutive year.
The report said BRAC Bank’s sustainability efforts focus on three broad areas — People, Planet and Prosperity — covering sustainable finance, climate action, financial inclusion, digital innovation, social impact and responsible governance.
Established in 2001, BRAC Bank PLC, traded as BRACBANK on the Dhaka Stock Exchange, has grown with a particular focus on small and medium enterprise (SME) financing.
The bank currently operates 310 branches and sub-branches, 330 ATMs, 446 SME Unit Offices and 1,119 agent banking outlets.
With more than two million customers and a workforce of over 10,000 people, the bank serves corporate, retail and SME customers across Bangladesh.
BRAC Bank said it remains the country’s largest collateral-free SME financier after 24 years of operation and continues to focus on governance, transparency and compliance in the banking sector.
