Policy Guidelines

Environmental Risk M anag ement/ G reen B anking

For

Export Import Bank of Bangladesh Limited

E nv ir onm
Introduction:

Policy Guidelines F or ent a l R isk M a na g em ent / Gr een B a nk ing

The state of environment in Bangladesh is deteriorating signific antly . The k ey areas of deterioration inc lu de land degradation ( over-ex ploitation, u nb alanc ed u se of agro-c hemic als and improper disposal of haz ardou s w aste) , w ater pollu tion and sc arc ity ( regional and seasonal availab ility , and q u ality of b oth su rfac e and grou nd w ater) , air pollu tion ( u nprec edented grow th in passenger vehic les and c ontinu ou s indu strial development) , b iodiversity resou rc es ( destru c tion and degradation of land, forest and aq u atic resou rc es) and impac ts of natu ral disasters ( periodic floods and c y c lones/ storm su rges in c oastal areas) . R apid popu lation grow th, improper u se of land poor resou rc e Bangladesh is already one of the most c limate vu lnerab le c ou ntries. I t w ill b ec ome even more vu lnerab le du e to c limate c hange and is ex pec ted to b e one of the w orst affec ted c ou ntries du e to c limate c hange impac ts. F loods, tropic al c y c lones, storm su rges and drou ghts are lik ely to b ec ome more freq u ent and severe in the c oming y ears. These w ill c au se b oth damage to people and property and hinder ec onomic progress. Bangladesh Bank instru c ted to all Bank s in Bangladesh to protec t their financ ing from the risk s arising ou t of the deteriorating environmental sc enario and the c limate c hange impac ts. Bu siness D evelopment O ffic ers and investment risk management offic ials shall c onsider environmental risk in the c redit/ investment risk grading in prac tic e to redu c e the gap b etw een perc eption and prac tic e in the Bank . I f Bank and all financ ial institu tions in Bangladesh move tow ards managing environmental risk s in their operations and c onsider these environmental risk as a part of financ ing dec isions w ill b e w ork ed as a most u sefu l and important tool tow ards b oth loc al and glob al su stainab le development. W e are aw are that glob al w arming is an issu e that c alls for a glob al response. G reen financ e as a part of G reen Bank ing mak es great c ontrib u tion to the transition to resou rc e-effic ient and low c arb on indu stries i.e. green indu stry and green ec onomy in general. G reen b ank s or environmentally responsib le b ank s do not only improve their ow n standards b u t also affec t soc ially responsib le b ehavior of other b u siness.

A b out E nv ironm P urp os e

e nta l R is k

M a na g e m

e nt:

The overall pu rpose of E nvironmental R isk M anagement is to u nderstand and manage risk that arises from environmental c onc erns. This b rings a foc u s on planning and implementing polic ies and proc edu res to mitigate environmental risk s. The spec ific pu rposes are to: E x amine the environmental issu es and c onc erns assoc iated w ith potential b u siness ac tivities proposed for financ ing I dentify , evalu ate and manage the environmental risk and the assoc iated financ ial implic ations arising from these issu es and c onc erns E nhanc e the c redit/ invest risk appraisal proc ess

A p p roa ch

The follow ing approac hes have b een u sed to enhanc e environmental risk management: Bank s shou ld b e ab le to asc ertain risk s arising ou t of environmental issu es The prac tic e shou ld b e direc ted tow ards addressing the foc u sed environmental prob lem that is c au sing the risk s. I t shou ld not b e u sed as a tool to solve prob lems in general
P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 2 of 20

The prac tic e needs to b e valu e adding to the b orrow er and shou ld not b e polic ing in natu re. Bank s shou ld w ork w ith the potential b orrow ers in a c ollab orative manner. Together, they shou ld plan the b u siness ac tivity that w ill adeq u ately address the environmental risk . Bank s shou ld u se E nvironmental R isk M anagement to strengthen the relationship w ith the b orrow er and not to c reate u nease.

E nvironmental R isk M anagement shou ld foc This intended for inc u lc ating responsib le redu c ing financ ing. H ow ever, if there irresponsib le and managing these risk s financ ing.

u s on managing risk s and not on avoiding risk s. financ ing prac tic es and not for disc ou raging/ are b u siness ac tivities that are inherently are not feasib le, the Bank / F I shou ld avoid

A dop ting

G re e n B a nk ing

P ol icy / E R M

G uide l ine :

G reen Bank ing P olic y / E R M G u ideline needs to b e c overed throu gh time frame w ork w hic h w ill b e segregated into 3 phases.

P h a s e -I

A s per Bangladesh Bank s gu ideline, Bank s are to develop green b ank ing polic ies and show general c ommitment on environment throu gh in-hou se performanc e. The time lining for the ac tions to b e tak en u nder P hase-I sho u l d n o t ex c eed D ec em b er 31 , 20 1 1 . T ak i n g i n t o c o n si d er at i o n t he sam e E X I M B an k has t ak en t o i m pl em en t t he f o l l o w i n g s:

1 .1

Bank has formu lated an environmental or G reen Bank ing polic y and strategy for approval the Board of D irec tors. A s per c lau se # 1 .1 of BR P D c irc u lar # 2 dated 27 / 0 2/ 20 1 1 , formation of a high pow ered c ommittee c omprising the D irec tors of the Board is u nder proc ess: The c ommittee shall b e responsib le for review ing the b ank s environmental polic ies, strategies and program. The c ommittee also shall approve a fu nd in the annu al b u dget alloc ation for green b ank ing. Bank s has also formed a separate G reen Bank ing U nit or C ell having the responsib ility of designing, evalu ating and administering related green b ank ing issu es of the b ank . The follow ing senior ex ec u tives shall b e assigned w ith the responsib ility of heading the u nit. G reen Bank ing C ommittee: 1 . D r. M ohammed H aider A li M iah- A dditional M anaging D irec tor 3 . M r. A b du l L atif Barab hu iy a- D epu ty M anaging D irec tor 2. M r. M . S iraj u l I slam-D epu ty M anaging D irec tor M emb er M emb er H ead of the U nit

P ol icy

F orm

ul a tion a nd G ov e rna nce

7 . M d. S hamsu r R ahman C how dhu ry -S enior V ic e P resident

6 . M r. S heik h M oy een U ddin- E x ec u tive V ic e P resident

5 . M r. K h. R u my E hsanu l H u q .-S enior E x ec u tive V ic e P resident

4 . M r. S iraj u l H oq u e M iah S enior E x ec u tive V ic e P resident

M emb er

M emb er

M emb er

M emb er

The u nit/ c ommittee w ill report regarding statu s/ position of green b ank ing of the b ank to the ab ove high pow ered c ommittee time to time. The c ommittee w ill also monitor the implementation progress req u irement of c hange in polic y in ac c ordanc e w ith gu ideline/ instru c tion of Bangladesh Bank .

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 3 of 20

1 .2

Bank has dec ided to inc orporate E nvironmental and C limate C hange R isk as part of the ex i st i n g c r ed i t r i sk m et ho d o l o g y ( C R G ) presc rib ed to assess a prospec tive c u stomer and formu late/ c irc u late follow ing c hec k list for different spec ific sec tors:
1 .3 . T e c h n i c a l A n n e x e s . 1 .3 .1 G e n e r a l E n v ir o n m e n t a l D u e -D i l i g e n c e C h e c k l i s t .

Incorp ora tion of E nv ironm

e nta l R is k

in C R M :

This check list is to be used for all proposals for financing being considered by the Banks. If there are no specific checklists for the particular sector under consideration, the general E D D alone, is to be used to determ ine the E nv R R rating. Branches are to com plete a response to each of these q uestions as Y es or N o or N ot A pplicable ( N A ) , and determ ine the E nv R R . If a q uestion does not apply to the sector under consideration, it should be ex cluded by deducting from the total num ber of q uestions used to calculate the percentages in determ ining the E nv R R .The j ustification for any ex clusion is to be docum ented separately and retained on file w ith the E nv R R checklists. P a r t ic u la r s P ossible sources of env ironm ental risk 1 .E n v ir o n m e n t a l C le a r a n c e s : In the proposal of financing, hav e all the applicable com pliances to env ironm ental law s. i.e. site clearances certificate and env ironm ental clearance certificate, been obtained from the D epartm ent of E nv ironm ent ( D O E ) . H av e these clearances been obtained after subm itting the appropriate docum ents for the different pollution category of industries ( G reen, O range-A , O range-B and R ed) 2. L a n d l o c a t i o n / s i t e : Is the land location / site free from v ulnerability from an env ironm ental perspectiv e? V ulnerability can arisedue to the issues such as the location being on the riv er bank( floods) and on national parks/ forests( non-com pliance) ? 3 .C lim a t e C h a n g e : Is the proposal for financing protected against clim ate change related im pacts such as cyclones , storm surges, floods and droughts if relev ant? Borrow er s E nv ironm ental M anagem ent S ystem s 4 .C o m m it m e n t : Is the potential borrow er s top m anagem ent com m itted to env ironm ental m anagem ent? 5 .M a n p o w e r : H as the potential borrow er planned for m anpow er resources to address env ironm ental issue? 6 .S k i l l s : If so , is the m anpow er skilled to address env ironm ental issue? 7. L a b o u r / s o c i a l i s s u e s : D oes the m anagem ent adoptgood practices v is--v is occupational health & safety and associated issues such as child labour, forced labour, w age com pensation, discrim ination and w orking hours? De t e r m i n i n g o v e r a l l E n v R R The italiciz ed q uestions are the m ore im portant/ critical ones. The E nv R R is determ ined as follow s: C riteria If answ ers to any one of the italiciz ed q uestions is N o italiciz ed q uestions is Y es Y e s / N o / N A

E nv R R

If answ ers to all q uestion is N o

but 5 0 %

or m ore of the non italiciz ed and less of the

H igh

H igh

If answ ers to all italiciz ed q uestions is Y es and if answ ers to less than 2 5 % rem aining q uestion is N o

If answ ers to all italiciz ed q uestions is Y es and if answ ers to m ore than 2 5 % than 5 0 % of the rem aining q uestion is N o

M oderate L ow

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 4 of 20

S e c t o r E n v ir o n m

e n t a l D u e -D i l i g e n c e C h e c k l i s t : A g r i -b u s i n e s s ( P o u l t r y &

D a ir y )

P o u lt r y : This checklist should be used for all proposals for financing in the poultry sub-sector of the agri-business. P lease com plete a response to each of these q uestions as Y es or N o or N ot A pplicable ( N A ) , and determ ine the E nv R R . L e g a l C la s s if ic a t io n : A s per E C R 1 9 9 7 , this is O range A category up to 2 5 0 birds in urban areas and up to 1 0 0 0 in rural areas. A nd, this is O range B category for abov e 2 5 0 birds in urban area and abov e 1 0 0 0 in rural areas. K e y is s u e s a n d p r o p o s e d t e c h n o lo g ie s / a p p r o a c h e s Y e s / N o / N A

1 . A v i a n i n f l u e n z a : D oes the business activ ity take adeq uate m anagem ents m easures to protect from anim al diseases / pathogens such as A v ian influenz a ( S train H N 5 1 ) ? 2. S o l i d Is there prov ision for appropriate m anagem ent of solid w aste including w aste feed , anim al w aste, carcasses, sedim ents and sludge from w aste w ater treatm ent facilities? A re there responsible m ethods to dispose the solid w aste/ sludge from included in the design? a s t e w a t e r / E T P : the E TP w a s t e :

P a r t ic u la r s

been

3 .W

4 .H a z a r d o u s m

D oes the design ensure that there is no bypass arrangem ent for the E TP w ater m anagem ent processes? a t e r ia ls :

Is there an E ffluent Treatm ent P lant ( E TP ) or appropriate w aste w ater m anagem ent processes to treat the w aste w ater discharges? or w aste

5 .M o n it o r in g :

A re there adeq uate system s for the handling , storage and transport of haz ardous m aterials? A nd, is there adeq uate sheck to ensure only perm issible haz ardous m aterials are in use? H as env ironm ental m onitoring, pathogens, been planned? in in g o v e r a ll E n v R R particularly protection from diseases causing

De t e r m

The italiciz ed q uestions are the m ore im portant/ critical ones. The E nv R R is determ ined as follow s: C riteria If answ ers to any one of the italiciz ed q uestions is N o italiciz ed q uestions is Y es

E nv R R

If answ ers to all q uestion is N o

but 5 0 %

or m ore of the non italiciz ed and less of the

H igh

H igh

If answ ers to all italiciz ed q uestions is Y es and if answ ers to less than 2 5 % rem aining q uestion is N o

If answ ers to all italiciz ed q uestions is Y es and if answ ers to m ore than 2 5 % than 5 0 % of the rem aining q uestion is N o

M oderate L ow

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 5 of 20

D a ir y : This checklist should be used for all proposals for financing in the diary sub- sector of the A gri -business. please com plete a response to each of these q uestions as Y es or N o or N ot A pplicable ( N A ) , and determ ine the E nv R R . L e g a l C la s s if ic a t io n : A s per E C R 1 9 9 7 , for dairy farm , this is O range A category for 1 0 cattle or below in urban areas and 2 5 or below in rural areas. A nd this is O range B category for abov e 1 0 in urban areas and abov e 2 5 num bers in rural areas and for dairy processing, this is O range B category. K e y is s u e s a n d p r o p o s e d t e c h n o lo g ie s / a p p r o a c h e s Y e s / N o / N A

1 .W

Is there an E ffluent Treatm ent P lant ( E TP ) to treat the w aste w ater discharges in the design? D oes the E TP D esign ensure that there is no By pass arrangem ent? w a s t e :

a s t e w a t e r / E T P :

P a r t ic u la r s

2. S o l i d

3 .A ir e m

H av e proper prov isions been m ade for the m anagem ent of organic solid w aste in dairy processing facilities? is s io n s :

A re there responsible m ethods to dispose the solid w aste/ sludge from included in the design?

the E TP

been

4 .M o n i t o r i n g

A re air em ission prev ention and control m easures system s installed from the com bustion of fuel in turbines, boilers, com pressors and other engines for pow er and heat generation? H as env ironm ental m onitoring, particularly effluent characteristics, been planned? :

De t e r m

in in g

o v e r a ll E n v R R

The E nv R R C r it e r ia

The italiciz ed q uestions are the m ore im portant/ critical ones. is determ ined as follow s:

If answ ers to all q uestion is N o

If answ ers to any one of the italiciz ed q uestions is N o italiciz ed q uestions is Y es

E n v R R or m ore of the non italiciz ed and less of the H igh H igh

but 5 0 %

If answ ers to all italiciz ed q uestions is Y es and if answ ers to less than 2 5 % rem aining q uestion is N o

If answ ers to all italiciz ed q uestions is Y es and if answ ers to m ore than 2 5 % than 5 0 % of the rem aining q uestion is N o

M oderate L ow

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 6 of 20

1 .3 .2

S e c t o r E n v ir o n m

e n t a l D u e -D i l i g e n c e C h e c k l i s t : C e m

e n t

This checklist should be used for all proposals for financing in the cem ent sector. P lease com plete a response to each of these q uestions as Y es or N o or N ot A pplicable ( N A ) , and determ ine the E nv R R . L e g a l c la s s if ic a t io n : A s per E C R 1 9 9 7 . this is red category. p r o p o s e d t e c h n o lo g ie s / a p p r o a c h e s Y e s / N o / N A

K e y is s u e s a n d

1 .A ir e m

2. W

A re air em ission prev ention and control m easures system s installed in all point sources of em issions in operational process and also in the handling and storage of interm ediate and final goods? Is there an E ffluent Treatm ent P lant ( E TP ) to treat the w aste w ater discharges ? w a s t e : the E TP been a s t e w a t e r / E T P :

is s io n s :

P a r t ic u la r s

3 .S o lid

4 .N o is e :

H av e proper prov isions been m ade for the m anagem ent of clinker production w aste and kiln dust??

A re there responsible m ethods to dispose the solid w aste/ sludge from included in the design?

solid w aste including

5 .M o n it o r in g :

H av e noise control m easures been put in place in grinding, transportation?

handling and

D oes env ironm ental m onitoring for continuous m onitoring eq uipm ent on all dust em ission lines?

De t e r m

The E nv R R C riteria

The italiciz ed q uestions are the m ore im portant/ critical ones. is determ ined as follow s:

in in g

o v e r a ll E n v R R

If answ ers to all q uestion is N o

If answ ers to any one of the italiciz ed q uestions is N o italiciz ed q uestions is Y es

E nv R R or m ore of the non italiciz ed and less of the

but 5 0 %

H igh

H igh

If answ ers to all italiciz ed q uestions is Y es and if answ ers to less than 2 5 % rem aining q uestion is N o

If answ ers to all italiciz ed q uestions is Y es and if answ ers to m ore than 2 5 % than 5 0 % of the rem aining q uestion is N o

M oderate L ow

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 7 of 20

1 .3 .3

S e c t o r E n v i r o n m e n t D u e -D i l i g e n c e C h e c k l i s t : C h e m P h a r m a c e u t ic a ls )

ic a ls ( F e r t iliz e r s , P e s t ic id e s , a n d

F e r t iliz e r s : This checklist should be used for all proposals for financing in the fertiliz er sector. P lease com plete a response to each of these q uestions as Y es or N ot A pplicable ( N A ) , and determ ine the E nv R R . L e g a l c la s s if ic a t io n A s per E C R 1 9 9 7 , this is R ed category. K e y is s u e s a n d p r o p o s e d t e c h n o lo g ie s / a p p r o a c h e s Y e s / N o / N A

1 .H a z a r d o u s c h e m

2. W

D oes the design prov ide for handling, storage and transportation of haz ardous chem icals in the m anufacture of fertiliz ers? Is there an E ffluent Treatm ent P lan ( E TP ) to treat the w aste w ater discharge in the design? D oes the E TP design ensure that there is no bypass arrangem ent? w a s t e : a s t e w a t e r / E T P :

ic a ls :

P a r t ic u la r s

3 .S o lid

A re there responsible m ethods to dispose the solid w aste/ sludge from included in the design?

the E TP been

4 .A ir e m

D oes the business activ ity include an approach tow ards handling and disposal of spent catalyst/ tox ic m etals, if any? H av e prov isions been m ade for the m anagem ent of these haz ardous w aste? A re air em ission prev ention and control m easures in place for am m onia, nitric ox ides and nitrous ox ides in nitrogenous fertiliz er m anufacturing, and in utilities such as boilers? A re noise control m easures in place for the large-siz ed rotating m achines? D oes env ironm ental m onitoring include continuous m onitoring system s of storm for pH , fluoride & am m onia? in in g o v e r a ll E n v R R w ater is s io n :

5 .N o is e :

6 .M o n it o r in g :

De t e r m

The italiciz ed q uestions are the m ore im portant / critical ones. The E nv R R is determ ined as follow s: C r it e r ia E n v R R

If answ ers to all italiciz ed q uestions is Y es and if answ ers to less than 2 5 % rem aining q uestions is N o

If answ ers to all italiciz ed q uestions is Y es and if answ ers to m ore than 2 5 % than 5 0 % of the rem aining q uestions is N o

If answ ers to all italiciz ed q uestions is Y es but 5 0 % q uestions is N o

If answ ers to any one of the italiciz ed q uestions is N o

or m ore of the non italiciz ed and less of the

H igh

H igh

M oderate L ow

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 8 of 20

P e s t ic id e s : This checklist should be used for all proposals for financing in the pesticide sector. P lease com plete a response to each of these q uestions as Y es or N o or N ot A pplicable ( N A ) , and determ ine the E nv R R . L e g a l c la s s if ic a t io n : A s per E C R 1 9 9 7 , this is R ed category. p r o p o s e d t e c h n o lo g ie s / a p p r o a c h e s Y e s / N o / N A

K e y is s u e s a n d

P a r t ic u la r s 1 .G u id e lin e s : Is the pesticide m anufacturing been carried out in line w ith the W H O guidelines, S tockholm C onv ention and R otterdam C onv ention 2. H a z a r d o u s c h e m i c a l s : D oes the design prov ide for handling, storage and transportation of haz ardous chem icals in the m anufacture of pesticide? 3 .W a s t e w a t e r / E T P : Is there an E ffluent Treatm ent P lan ( E TP ) to treat the w aste w ater discharge in the design? D oes the E TP design ensure that there is no bypass arrangem ent? 4 .S o lid w a s t e : A re there responsible m ethods to dispose the solid w aste/ sludge from the E TP been included in the design? H as prov ision been m ade for the proper m anagem ent of solid w aste ( e.g. chem ical residues and filtrates) and liq uid w aste ( e.g. spent solv ents) ? 5 .A ir e m is s io n : A re proper air pollution control dev ices included to tackle em issions during pesticide m anufacturing, form ulating and packaging? 6 .M o n it o r in g : D oes env ironm ental m onitoring include continuous m onitoring system s of storm w ater for pH , fluoride & am m onia? 7. F i r e / e x p l o s i o n s : H av e proper design prov isions been m ade to prev ent fire and ex plosion haz ards that m ay arise from solv ent use, handling and storage? 8. M o n i t o r i n g : Is env ironm ental m onitoring, particularly the effluent characteristics, proposed on a periodic/ regular basis? De t e r m in in g o v e r a ll E n v R R

The italiciz ed q uestions are the m ore im portant / critical ones. The E nv R R is determ ined as follow s: N o % or m ore of the non italiciz ed answ ers to m ore than 2 5 % answ ers to less than 2 5 % and of the E n v R R H igh H igh M oderate L ow

C r it e r ia If answ ers to any one of the italiciz ed q uestions is If answ ers to all italiciz ed q uestions is Y es but 5 0 q uestions is N o If answ ers to all italiciz ed q uestions is Y es and if less than 5 0 % of the rem aining q uestions is N o If answ ers to all italiciz ed q uestions is Y es and if rem aining q uestions is N o

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 9 of 20

P h a r m

a c e u t ic a ls :

This checklist should be used for all proposals for financing in the pesticide sector. P lease com plete a response to each of these q uestions as Y es or N o or N ot A pplicable ( N A ) , and determ ine the E nv R R . L e g a l c la s s if ic a t io n A s per E C R 1 9 9 7 , this is O range B category. This is classified as life sav ing drugs. K e y is s u e s a n d p r o p o s e d ic a ls : t e c h n o lo g ie s / a p p r o a c h e s Y e s / N o / N A

1 .H a z a r d o u s c h e m 2. W a s t e w a t e r /

P a r t ic u la r s

H av e m ethods been including for the safe storage and use of haz ardous chem icals? Is there an E ffluent Treatm ent P lan ( E TP ) to treat the w aste w ater discharge in the design? D oes the E TP design ensure that there is no bypass arrangem ent? w a s t e : E T P :

3 .S o lid

A re there responsible m ethods to dispose the solid w aste/ sludge from included in the design? is s io n :

the E TP been

4 .A ir e m

A re there responsible m ethods to dispose off-specification drugs/ dam aged m edicines? H av e m ethods to m anage the haz ardous air pollutants ( e.g. benz ene and carbon tetrachloride and toluene) and odorous com pounds ( e.g. m ercaptans) ? H av e proper procedures been follow ed if there is the use of particular generic resources that hav e threats to biodiv ersity? Is env ironm ental m onitoring, particularly of the air em issions ( stack and fugitiv e) , proposed on a periodic/ regular basis? in in g o v e r a ll E n v R R

5 .G e n e r ic r e s o u r c e s :

6 .M o n it o r in g :

D e t e r m

The italiciz ed q uestions are the m ore im portant / critical ones. The E nv R R is determ ined as follow s: C r it e r ia E n v R R

If answ ers to all italiciz ed q uestions is Y es but 5 0 % q uestions is N o

If answ ers to any one of the italiciz ed q uestions is N o

or m ore of the non italiciz ed and of the

H igh

H igh

If answ ers to all italiciz ed q uestions is Y es and if answ ers to less than 2 5 % rem aining q uestions is N o

If answ ers to all italiciz ed q uestions is Y es and if answ ers to m ore than 2 5 % less than 5 0 % of the rem aining q uestions is N o

M oderate L ow

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 10 of 20

1 .3 .4

S e c t o r E n v ir o n m

e n t D u e -D i l i g e n c e C h e c k l i s t : E n g i n e e r i n g

a n d

b a s ic m

e t a l:

This checklist should be used for all proposals for financing in the engineering and basic m etal sector. P lease com plete a response to each of these q uestions as Y es or N o or N ot A pplicable ( N A ) , and determ ine the E nv R R . L e g a l c la s s if ic a t io n A s per E C R 1 9 9 7 , this is orange B category for engineering w orks up to BD A nd, this is R ed category for engineering w orks abov e BD Tk. 1 0 , 0 0 , 0 0 0 . K e y is s u e s a n d p r o p o s e d t e c h n o lo g ie s / a p p r o a c h e s Y e s / N o / N A Tk. 1 0 , 0 0 , 0 0 0 and re-rolling,

1 .A ir e m

2. W

H av e appropriate air pollution control eq uipm ent at the em issions points and also ex haust prov isions in the v arious m etal m anufacturing processes? H as an E TP for the cleaning and rinsing stream s included in the design? D oes the E TP design ensure that there is no bypass arrangem ent? w a s t e : a s t e w a t e r / E T P :

is s io n :

P a r t ic u la r s

3 .S o lid

A re there responsible m ethods to dispose the solid w aste/ sludge from included in the design?

the E TP been

4 .N o is e :

Is proper m anagem ent of the different types of solid w astes been undertaken? A re m easures to control noise from activ ities? the m echanical eq uipm ent and physical

5 .F ir e e x p lo s io n s :

6 .M o n it o r in g :

H av e proper design prov isions been m ade to prev ent fire and ex plosion haz ards that m ay arise from operation? Is env ironm ental m onitoring, particularly of the air em issions ( stack and fugitiv e) , proposed on a periodic/ regular basis? in in g o v e r a ll E n v R R

D e t e r m

The italiciz ed q uestions are the m ore im portant / critical ones. The E nv R R is determ ined as follow s: C r it e r ia E n v R R

If answ ers to all italiciz ed q uestions is Y es and if answ ers to less than 2 5 % rem aining q uestions is N o

If answ ers to all italiciz ed q uestions is Y es and if answ ers to m ore than 2 5 % than 5 0 % of the rem aining q uestions is N o

If answ ers to all italiciz ed q uestions is Y es but 5 0 % q uestions is N o

If answ ers to any one of the italiciz ed q uestions is N o

or m ore of the non italiciz ed and less of the

H igh

H igh

M oderate L ow

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 11 of 20

1 .3 .5

S e c t o r E n v ir o n m

e n t a l D u e -D i l i g e n c e C h e c k l i s t : H o u s i n g

This checklist should be used for all proposals for financing in the housing sector. P lease com plete a response to each of these q uestions as Y es or N o or N ot A pplicable ( N A ) , and determ ine the E nv R r. L egal classification A s per E C R 1 9 9 7 , this is not classified. K ey issues and proposed technologies/ approaches P a r t ic u la r s Y e s / N o / N A

1 .S e w a g e :

H as a sew age treatm ent plant ( S TP ) of a siz e appropriate to the req uirem ents been included in the design? Is there a j ustification for the chosen siz e? D ose the S TP design ensure that there is not bypass arrangem ent?

2. D u s t :

3 .N o is e :

D oes the proposed business activ ity hav e appropriate m easures to control the dust pollution during construction? A re m easures to control noise from the large construction activ ities?

4 .D e b r is :

5 .M o n it o r in g :

A re there m easures to m anage the construction debris?

Is env ironm ental m onitoring, particularly of the air em issions and effluent discharges, proposed on a periodic/ regular basis? in in g o v e r a ll E n v R R

De t e r m

The italiciz ed q uestions are the m ore im portant/ critical ones The E nv R R C riteria is determ ined as follow s:

If answ ers to all italiciz ed q uestions is yes and if answ ers to m ore than 2 5 % than 5 0 % of the rem aining q uestions is N o If answ ers to all italiciz ed q uestions is yes and if answ ers to less than 2 5 % rem aining q uestions is N o

If answ ers to all italiciz ed q uestions is yes but 5 0 % q uestions is N o

If answ ers to any one of the italiciz ed q uestions is N o

or m ore of the non italiciz ed and less of the

H igh

E nv R R

H igh

M oderate L ow

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 12 of 20

1 .3 .6

S e c t o r E n v ir o n m

e n t a l D u e -D i l i g e n c e C h e c k l i s t : P u l p

&

p a p e r

This checklist should be used for all proposals for financing in the pulp & paper sector. P lease com plete a response to each of these q uestions as Y es or N o or N ot A pplicable ( N A ) , and determ ine the E nv R r. L e g a l c la s s if ic a t io n : A s per E C R 1 9 9 7 , this is R ed category. K ey issues and proposed technologies/ approaches P a r t ic u la r s 1 .W Y e s / N o / N A

2. A i r e m

H as an E TP of a siz e appropriate to the req uirem ents been included in the design? Is there a j ustification for the chosen siz e? D oes the proposed business activ ity hav e appropriate air pollution control eq uipm ent at the em issions points, particularly the pulp processing and utilities? A re there responsible m ethods to dispose the solid w aste/ sludge from included in the design? W a s t e : the E TP been is s io n s :

a s t e w a t e r /

E T P :

3 .S o lid

4 .O d o u r : 5 .N o is e :

A re there m easures to m anage the large q uantities of solid w aste ( though nonhaz ardous) ? A re m easures for prev enting and controlling odour been planned? the large m echanical eq uipm ent and physical

6 .M o n it o r in g :

A re m easures to control noise from activ ities?

Is env ironm ental m onitoring, particularly of the effluent s characteristics, proposed on a periodic/ regular basis? in in g o v e r a ll E n v R R

De t e r m

The E nv R R

The italiciz ed q uestions are the m ore im portant/ critical ones. is determ ined as follow s:

If answ ers to all italiciz ed q uestions is yes and if answ ers to m ore than 2 5 % than 5 0 % of the rem aining q uestions is N o If answ ers to all italiciz ed q uestions is yes and if answ ers to less than 2 5 % rem aining q uestions is N o

If answ ers to all italiciz ed q uestions is yes but 5 0 % q uestions is N o

If answ ers to any one of the italiciz ed q uestions is N o

C riteria

or m ore of the non italiciz ed and less of the

H igh

E nv R R

H igh

M oderate L ow

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 13 of 20

1 .3 .7 S e c t o r E n v i r o n m

e n t a l D u e -D i l i g e n c e C h e c k l i s t : S u g a r &

d is t ille r ie s :

This checklist should be used for all proposals for financing in the sugar and distilleries sector. P lease com plete a response to each of these q uestions as Y es or N o or N ot A pplicable ( N A ) , and determ ine the E nv R r. L e g a l c la s s if ic a t io n A s per E C R 1 9 9 7 , this is R ed category. K ey issues and proposed technologies/ approaches P a r t ic u la r s Y e s / N o / N A

1 .W

3 .S o lid

H as an E TP of a siz e appropriate to the req uirem ents been included in the design? Is there a j ustification for the chosen siz e of E TP ? A re there responsible m ethods to dispose the solid w aste/ sludge from included in the design? W a s t e : the E TP been

a s t e w a t e r /

E T P :

3 .W

H av e m ethods to store and dispose solid w astes ( generated from raw m aterial) been planned in the design? a t e r :

the treatm ent of

4 .A ir e m

A re w ater consum ption reduction approaches been adopted to reduce the ov erall w ater intake? is s io n s :

5 .O d o u r :

D oes the proposed business activ ity hav e appropriate air pollution control eq uipm ent at the em issions points, particularly the steam boilers?

6 .M o n it o r in g :

A re m easures for prev enting and controlling odour been planned? Is env ironm ental m onitoring, particularly of the effluent s characteristics, proposed on a periodic/ regular basis? in in g o v e r a ll E n v R R

De t e r m

The E nv R R

The italiciz ed q uestions are the m ore im portant/ critical ones. is determ ined as follow s:

If answ ers to all italiciz ed q uestions is yes and if answ ers to m ore than 2 5 % than 5 0 % of the rem aining q uestions is N o If answ ers to all italiciz ed q uestions is yes and if answ ers to less than 2 5 % rem aining q uestions is N o

If answ ers to all italiciz ed q uestions is yes but 5 0 % q uestions is N o

If answ ers to any one of the italiciz ed q uestions is N o

C riteria

or m ore of the non italiciz ed and less of the

H igh

E nv R R

H igh

M oderate L ow

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 14 of 20

1 .3 .8 S e c t o r E n v i r o n m

e n t a l D u e -D i l i g e n c e C h e c k l i s t : T a n n e r y

This checklist should be used for all proposals for financing in the tannery sector. P lease com plete a response to each of these q uestions as Y es or N o or N ot A pplicable ( N A ) , and determ ine the E nv R r. L e g a l c la s s if ic a t io n A s per E C R 1 9 9 7 , this is R ed category. K ey issues and proposed technologies/ approaches P a r t ic u la r s 1 .H a z a r d o u s c h e m ic a ls :

Y e s / N o / N A

2. W

D oes the business activ ity include appropriate haz ardous chem icals m anagem ent m ethods in pretreatm ent, dyeing and other processes? D oes the proposed business activ ity hav e its ow n E TP ? If it is to a C om m on E TP , is this in w orking order? a s t e w a t e r / E T P :

D oes the E TP design ensure that there is no bypass arrangem ent? D oes the proposed business activ ity include a chrom e recov ery unit in its design?

3 .S o lid

If the past-E TP treated w astew ater discharged into a w aste body from draw n for other applications? W a s t e :

w here w ater is

5 .O d o u r :

Is the m anagem ent of solid w astes properly planned and m ethods of disposal identified? A re there m ethods to control the odour from nuisance to the surrounding com m unity? Is env ironm ental m onitoring, regular basis? in in g o v e r a ll E n v R R leather tanning as these constitute a

A re there responsible m ethods to dispose the solid w aste/ sludge from included in the design?

the E TP been

6 .M o n it o r in g :

particularly C hrom ium

V I, proposed on a periodic/

De t e r m

The E nv R R C riteria

The italiciz ed q uestions are the m ore im portant/ critical ones. is determ ined as follow s:

If answ ers to all italiciz ed q uestions is yes and if answ ers to m ore than 2 5 % than 5 0 % of the rem aining q uestions is N o If answ ers to all italiciz ed q uestions is yes and if answ ers to less than 2 5 % rem aining q uestions is N o

If answ ers to all italiciz ed q uestions is yes but 5 0 % q uestions is N o

If answ ers to any one of the italiciz ed q uestions is N o

or m ore of the non italiciz ed and less of the

H igh

E nv R R

H igh

M oderate L ow

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 15 of 20

1 .3 .9

S e c t o r E n v ir o n m

e n t a l D u e -D i l i g e n c e C h e c k l i s t : T e x t i l e a n d

a p p a r e ls

This checklist should be used for all proposals for financing in the tex tile sector. P lease com plete a response to each of these q uestions as Y es or N o or N ot A pplicable ( N A ) , and determ ine the E nv R r. L e g a l c la s s if ic a t io n A s per E C R 1 9 9 7 , this is O range B category. K ey issues and proposed technologies/ approaches P a r t ic u la r s Y e s / N o / N A

1 .H a z a r d o u s c h e m

2. W

D oes the business activ ity include appropriate haz ardous chem icals m anagem ent m ethods in pretreatm ent, dyeing and other processes? D oes the proposed business activ ity hav e its ow n E TP ? a s t e w a t e r / E T P :

ic a ls :

If business activ ity uses specific dyes ( e.g. chrom e dyes, sulphur dyes or phenolic com pounds) in dyeing process, is there a m ethod to check the lim its of particular com pounds in the effluent discharged? 3 .S o lid H as the E TP design ensured that there is no bypass arrangem ent? W a s t e :

4 .A ir e m

Is the m anagem ent of solid w astes properly planned and m ethods of disposal identified? The w astes include trials, trim m ings, cuttings of fabrics, spent dyes, pigm ents, and printing pastes; and E TP sludge containing m ainly fibres and grease. A re air pollution control dev ices planned in the finishing processes such as coating and dyeing to m anage air em issions that m ay contain tox ic com pounds? e x p lo s io n s : is s io n s :

5 .F ir e a n d

6 .M o n it o r in g :

H av e proper design prov isions been m ade to prev ent fire and ex plosion haz ards that m ay arise from operations? Is env ironm ental m onitoring, periodic basis? e n t s : particularly effluent characteristics, proposed on a

7. E x p o r t r e q u i r e m

If it is an ex port-oriented business or part of the supply chain, hav e all the buyer env ironm ental req uirem ents been m et? in in g o v e r a ll E n v R R

De t e r m

The E nv R R C riteria

The italiciz ed q uestions are the m ore im portant/ critical ones. is determ ined as follow s:

If answ ers to all italiciz ed q uestions is yes and if answ ers to m ore than 2 5 % than 5 0 % of the rem aining q uestions is N o If answ ers to all italiciz ed q uestions is yes and if answ ers to less than 2 5 % rem aining q uestions is N o

If answ ers to all italiciz ed q uestions is yes but 5 0 % q uestions is N o

If answ ers to any one of the italiciz ed q uestions is N o

or m ore of the non italiciz ed and less of the

H igh

E nv R R

H igh

M oderate L ow

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 16 of 20

1 .3 .1 0

S e c t o r E n v ir o n m

e n t a l D u e -D i l i g e n c e C h e c k l i s t : S h i p

b r e a k in g

This checklist should be used for all proposals for financing in the ship breaking sector. P lease com plete a response to each of these q uestions as Y es or N o or N ot A pplicable ( N A ) , and determ ine the E nv R r. L e g a l c la s s if ic a t io n A s per E C R 1 9 9 7 , this is O range B category. K ey issues and proposed technologies/ approaches P a r t ic u la r s 1 .C e r t if ic a t e :

Y e s / N o / N A

2. H a z a r d o u s c h e m

D o the m anagem ent m ethods include obtaining a certificate from country? ic a ls :

the ex porting

3 .W

D oes the business activ ity include appropriate haz ardous chem icals m anagem ent m ethods during sorting, storage and reuse? D oes the proposed business activ ity hav e an E TP in its design? W a s t e : a s t e w a t e r / E T P :

4 .S o lid

H as the E TP design ensured that there is no bypass arrangem ent?

6 .M o n it o r in g :

Is the m anagem ent of solid w astes properly planned and m ethods of disposal identified? particularly effluent characteristics, proposed on a

7. E x p o r t r e q u i r e m

Is env ironm ental m onitoring, periodic/ regular basis? e n t s :

If it is an ex port-oriented business or part of the supply chain, hav e all the buyer env ironm ental req uirem ents been m et? in in g o v e r a ll E n v R R

De t e r m

The E nv R R C riteria

The italiciz ed q uestions are the m ore im portant/ critical ones. is determ ined as follow s:

If answ ers to all italiciz ed q uestions is yes and if answ ers to m ore than 2 5 % than 5 0 % of the rem aining q uestions is N o If answ ers to all italiciz ed q uestions is yes and if answ ers to less than 2 5 % rem aining q uestions is N o

If answ ers to all italiciz ed q uestions is yes but 5 0 % q uestions is N o

If answ ers to any one of the italiciz ed q uestions is N o

or m ore of the non italiciz ed and less of the

H igh

E nv R R

H igh

M oderate L ow

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 17 of 20

1 .3 .1 1

M a t r ix f r o

q u ic k o n

g u id a n c e o n

p o t e n t ia l E n v ir o n m

e n t a l r is k s :

A. O v e r a l l R i s k
Sl. No.

b a s e d

P r o je c t L o c a t io n
E n g . C le a r L a n d / Si t e C li m C h g e R e m a r k s , if a n y

D e s c r i p t i on

A 1 A 2 A 3

O n the coast Inland-F lood plain Inland-outside flood plan

Y es Y es Y es

Y es Y es N o

Y es Y es N o

B . S e c t o r S p e c if ic R is k
Sl. No. D e s c r i p t i on E n v . C le a r E f f l. H a z . C h e m W a s t e A ir E m . O t h e r s R e m a r k s , if a n y

B1 B2 B3 B4 B5 B6 B7 B8 B9 B1 0 B1 1 B1 2 B1 3

A gri-P oultry A gri-D airy C em ent C hem icalsF ertiliz ers C hem icalsP esticides C hem icalsP harm aceuticals E ngg. A nd basic m etal H ousing P ulp & paper S ugar & distilleries Tannery Tex tile and apparels S hip breaking

Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es

Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es

Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es

Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es

Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es

Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es Y es

A v ian F lu N oise N oise W H O G uidelines, F ire/ E x plosions G enetics, Bioethics, L abour N oise, F ire/ ex plosions N oise, D ebris N oise, O dour W ater av ail, odour odour L abour, F ire/ E x pl & E x port R eq ts. L abour

Y e s : S ource of R isk m ust be considered N o : S ource of R isk not applicable This m atrix should be seen as indicativ e. This is based on the feedback receiv ed from Bangladesh. Banks/ F Is in

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 18 of 20

1 .4 A

1 .5 I n t r o d u c i n g

' G reen O ffic e G u ide' or at least a set of general instru c tions shou ld b e c irc u lated to the employ ees for effic ient u se of elec tric ity , w ater, paper and reu se of eq u ipments for ex ample: online c ommu nic ation & doc u ment, dou b le-side printing to save papers, E c ofont in printing, u se sc rap paper as notepads, avoid disposab le c u ps/ glasses, I nstallation of energy effic ient elec tronic eq u ipments and au tomatic shu tdow n of c ompu ters, fans, lights, air c oolers, etc . G r een f i n an c e:

I n i t i at i n g

I n -ho u se E n v i r o n m

en t M an ag em

en t :

E c o friendly b u siness ac tivities and energy effic ient indu stries w ill b e given preferenc e in financ ing b y b ank . E nvironmental infrastru c tu re su c h as renew ab le energy proj ec t, c lean w ater su pply proj ec t, w astew ater treatment plant, solid & haz ardou s w aste disposal plant, b io-gas plant, b io-fertiliz er plant shou ld b e enc ou raged and financ ed b y b ank . C onsu mer loan programs may b e applied for promoting environmental prac tic es among the c lients. 1 .6 Bank w ill financ e the ec onomic ac tivities of the flood, c y c lone and drou ght prone areas at the regu lar profit rate w ithou t c harging additional risk premiu m. H ow ever, b ank s w ill advic e to the E X I M Bank F ou ndation to b u ild/ retain a C limate C hange R isk F u nd for distrib u tion to the affec ting people in c ase of emergenc y . The fu nd may b e u sed for C S R ac tivities. 1 .7 G reen mark eting is the mark eting of produ c ts that are presu med to b e environmentally safe. G reen mark eting is ex pec ted to help aw areness development among c ommon people. O n l i n e b an k i n g i s a g r een b an k i n g . Bank s w ill give more emphasis to mak e the easiest w ay to help environment b y eliminating paper w aste, saving gas and c arb on emission, redu c ing printing c osts and postage ex penses. 1 .8 S u ppo r t i n g E m pl o y ee T r ai n i n g , C o n su m er A w ar en ess an d G r een E v en t : Bank w ill issu e c irc u lar, gu ideline and arrange training, w ork shop, seminar etc for b u ilding aw areness among the employ ees and its c u stomers. 1 .9 D i sc l o su r e an d R epo r t i n g : D isc losu re and R eporting to Bangladesh Bank and others on G reen Bank ing A c tivities w ill b e made periodic ally and u pgrading the same in ou r w eb sites as w ell. 1 .8 O n l i n e B an k i n g : I n t r o d u c in g G r een M ar k et i n g : C r eat i o n o f C lim at e R i sk F u n d :

Phase-I I
The time lining for the ac tions to b e tak en u nder P hase-I I w i l l n o t ex c eed 20 1 2. 2.1 S ec t o r S pec i f i c E n v i r o n m en t al P o l i c i es: D ec em b er 31 ,

Bank w ill formu late strategies to design spec ific polic ies for different environmental sensitive sec tors su c h as A gric u ltu re, A gri-b u siness ( P ou ltry & D airy ) , A gro farming, L eather ( Tannery ) , F isheries, Tex tile and A pparels, R enew ab le E nergy , P u lp and P aper,S u gar and distilleries, C onstru c tion and H ou sing, E ngineering and Basic M etal, C hemic als ( F ertiliz ers, P estic ides and P harmac eu tic als) , R u b b er and P lastic I ndu stry , H ospital/ C linic , C hemic al Trading, Bric k M anu fac tu ring, S hip b reak ing etc . Bank w ill determine green targets to b e attained throu gh strategic planning. Bank w ill determine a set of ac hievab le targets and strategies, and disc lose these in the annu al reports and w eb sites for green financ ing and in-hou se environment management. 2.2 G r een S t r at eg i c P l an n i n g :

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 19 of 20

2.3 S et t i n g A

G reen Branc h w ill b e featu red b y the provision of the max imu m u se of renew ab le energy , u se of energy saving b u lb s and other eq u ipments, elec tric ity u se, u se of rec y c led w ater etc . S u c h a b ranc h of the b ank w designated as a G reen Branc h . T he G r een B r an c h w i l l b e en t i t l ed t o l o g o appr o v ed b y B an g l ad esh B an k . The c riteria for c ertific ation of a G c irc u lated b y Bangladesh Bank in du e c ou rse of time. 2.4 I m pr o v ed I n -ho u se E n v i r o n m en t M an ag em en t :

u p G r een

B r an c hes:

natu ral light, u se of redu c ed w ater and ou ld b e spec ific ally d i spl ay a spec i al reen Branc h w ill b e

S trategy of reu se, rec y c ling of materials and eq u ipments, and sou rc e redu c tion and w aste minimiz ation strategy shou ld b e part of in-hou se environmental management in P hase-I I . Bank s shou ld inc reasingly rely on virtu al meeting throu gh the u se of video c onferenc ing in lieu of phy sic al travel w hic h w ou ld help saving c ost and energy . 2.5 R i g o r o u s P r o g r am st o E d u c at e C l i en t s: r e g ar d ing t h e ir

Bank will init iat e wo r ks h o p , s e m inar and c u s t o m e r g e t t o g e t h e r t o awar e t h e m p ar t ic ip at io n t o war d s p r o t e c t io n t h e e nv ir o nm e nt f r o m d if f e r e nt h az ar d s . 2.6 D i s c l o s u r e a n d R e p o r t i n g o f G r e e n B a n k i n g A c t i v i t i e s : D is c lo s u r e and R e p o r t ing t o Bang lad e s h Bank and o t h e r s o n G r e e n Banking m ad e p e r io d ic ally and u p g r ad ing t h e s am e in o u r we b s it e s as we ll.

A c t iv it ie s will b e

T h e t im e lining f o r t h e ac t io ns t o b e t ake n u nd e r P h a s e -I I I w i l l n o t e x c e e d 20 1 3.

Phase-I I I :

D e c e m

b e r 31 ,

3.1 D e s i g n i n g a n d I n t r o d u c i n g I n n o v a t i v e P r o d u c t s : T o e x p lo r e / inno v at e e nv ir o nm e nt f r ie nd ly id e as and p r o d u c t s , a m ar ke t ing / d e v e lo p m e nt u nit will b e f o r m e d u nd e r g u id anc e o f s e nio r m anag e m e nt . Banks like G ar r ang t h ir d p 3.2 R e p o r t i n g will p u b lis h ind e p e nd e nt G r e e n A nnu al R e p o r t f o llo wing int e r nat io nally ac c e p t e d f o r m at lo b al R e p o r t ing I nit iat iv e s ( G R I ) t ar g e t ing t h e ir s t ake h o ld e r s . T h e r e s h o u ld b e e m e nt f o r v e r if ic at io n o f t h e s e p u b lic at io ns b y an ind e p e nd e nt ag e nc y o r ac c e p t ab le ar t y . in S t a n d a r d F o r m a t w it h E x t e r n a l V e r if ic a t io n :

Bank will r e p o s it e S u p e r v is q u a r t e r ly r e p r e q u ir e d t o c o d a y s o f t h e u p d a t e d wit h

4 .

R ep o r t i n g

r t it s init iat iv e s io n o f B a n g la o r t o n J u n e 3 nt inu e t o s u b m r e s p e c t iv e q u t h e d is c lo s u r e s

G r een

B an k i n g

/ ac t iv it ie s u nd e r t d e s h B a n k o n q 0 , 2 0 1 1 b as is w it r e p o r t s o n t h e a r t e r e n d . Bank o n g r e e n b anking

Pr ac t i c es o n

h e s aid p r o g r am t o t h e D e p a r u a r t e r l y b a s i s . Bank will s u i t hi n J u l y 1 5 , 2 0 1 1 and s s u b s e q u e n t q u a r t e r s w it h in will ke e p it s a n n u a l r e p o r t init iat iv e s / ac t iv it ie s .

Q u ar t er l y

B asi s:

t m e n b m it im ilar t h e and w

t o f O f f it s f ir s t ly will b e n e x t 1 5 e b s it e s

P o lic y G u id e lin e s f o r E n v ir o n m e n t a l R is k M a n a g e m e n t / G r e e n B a n k in g rd [Approved by the Board in its 73 meeting held on 19/06/2011] Page 20 of 20