BRAC Bank has publicly disclosed 100 per cent of its greenhouse gas emissions, covering full spectrum from internal operations to emissions generated through its financing activities, said a press release dated July 24.
With the release of its Sustainability and Impact Report 2024, BRAC Bank completed a full-scale carbon accounting exercise, reporting a total of 1,477,468 tonnes of carbon dioxide equivalent (tCO2e) across direct (Scope 1), energy-related (Scope 2) and value chain (Scope 3) emissions.
Under Scope 1, which includes direct emissions from sources owned or controlled by the bank such as diesel generators, refrigerants, and fleet fuel, the bank reported 1,630 tCO2e.
For Scope 2, covering indirect emissions from purchased electricity, the figure stood at 16,671 tCO2e.
Scope 3 emissions, which encompass indirect impacts across the value chain, amounted to 1,459,167 tCO2e. Of this, 1,423,479 tCO2e came from Category 15 financed activities 鈥� emissions generated by businesses and sectors the bank supports. These alone represent over 96 per cent of BRAC Bank鈥檚 total reported carbon footprint. The remaining Scope 3 emissions, totalling 35,687 tCO2e, were linked to business travel, waste, procurement and employee commuting.
This positions BRAC Bank as a national frontrunner in South Asia among financial institutions voluntarily reporting Category 15 emissions under Scope 3 as defined by the GHG Protocol 鈥� considered the most complex and material aspect of a bank鈥檚 climate impact, with quantification based on the globally recognised Partnership for Carbon Accounting Financials (PCAF) standard, the release said.
Additionally, 18,112 tonnes of emissions were avoided through the bank鈥檚 clean energy investments and solar infrastructure, leading to a net climate impact of 1,459,356 tCO2e for 2024.
The exercise revealed key insights: three sectors 鈥� petroleum and chemicals, food and beverage, and metal manufacturing 鈥� were responsible for 61.5 per cent of these emissions, despite comprising only 21 per cent of the loan book.
To ensure accuracy, the bank aligned its methodology with global frameworks including the GHG Protocol, Global Reporting Initiative (GRI) Standards and International Financial Reporting Standards (IFRS) S1 and S2 under the International Sustainability Standards Board (ISSB). It also used internal sustainability risk tools such as sectoral carbon intensity metrics and Climate Vulnerability Indexes (CVI) to assess portfolio risks, the release said.
Beyond the data, this marks a shift in the bank鈥檚 operating philosophy. BRAC Bank has embedded emissions intensity and sectoral indicators into its credit risk framework, enabling real-time monitoring. This lays the foundation for sustainability-linked loans, climate-tied credit products, and preferential terms for clients undertaking measurable transitions.
The move strengthens Bangladesh鈥檚 standing in the global green finance space. Full transparency, particularly of financed emissions, positions BRAC Bank to engage with international development finance institutions (DFIs), green social and sustainability bond markets, and global ESG investors on a firmer footing.