Leading the way: National Bank's journey towards sustainable banking

As the world evolves, the pursuit of economic growth has taken centre stage. But this progress has also led to significant challenges such as biodiversity loss, climate change, and environmental degradation. Social issues like poverty alleviation have become increasingly crucial alongside economic advancements.

Sustainable banking aims to foster environmentally sound practices within the banking sector. A sustainable bank actively considers social and ecological factors to protect the environment, embracing its role as an ethical and sustainable institution. 

This commitment manifests in various ways, such as promoting online banking, facilitating electronic bill payments, and implementing energy-efficient technologies in its operations.

National Bank's sustainable initiatives 

National Bank Limited (NBL) is actively pursuing sustainable banking practices, following the guidelines set by the Bangladesh Bank. Their approach is structured and formalised to ensure long-term success.

NBL has developed a Sustainable Banking Policy, which outlines the framework for our sustainability efforts. This policy is not static; it is regularly updated to keep pace with changes in the economy, ensuring that NBL's practices remain relevant and effective.

Additionally, NBL follows Environmental and Social Risk Management (ESRM) guidelines, which are essential for evaluating potential risks when making credit and investment decisions. These guidelines highlight the need for a strong Environmental and Social Management System within the bank. 

By adhering to these standards, as detailed in Bangladesh Bank's Circular No. 03 from June 26, 2022, NBL ensures it can adapt to shifts in the banking sector.

NBL's sustainable banking initiatives 

The bank is committed to sustainable banking, following the guidelines from Bangladesh Bank. This commitment is evident in several key environmental initiatives, like making strides in energy efficiency by introducing solar power in several of its branches. This move towards alternative energy is part of an ongoing effort to reduce the bank's carbon footprint.

The bank also plays a significant role in financing eco-friendly projects. By providing funds for initiatives like Effluent Treatment Plants (ETPs) in industries such as textiles and leather, NBL is helping to promote environmentally sustainable business practices. In 2022 alone, the bank disbursed Tk29.7 crore to support projects using green technologies.

In line with its sustainability goals, NBL has implemented Temenos 24, a global core banking system, to enhance its online banking services. This system supports a wide range of online banking features, which help reduce paper waste by offering digital alternatives for account management, fund transfers, utility payments, and more.

NBL has also made banking more convenient and resource-efficient by enabling customers to access their accounts from any branch across Bangladesh. Additionally, the introduction of SMS banking services allows customers to conduct various transactions without needing paper, further supporting the bank's sustainable practices.

NBL iPower App 

In January 2021, NBL launched the innovative "NBL iPower App," facilitating seamless online transactions and recognized as one of the best banking platforms in the country. The app signifies NBL's commitment to promoting paperless banking. Currently, NBL is revamping the app to offer advanced digital services, transitioning to a comprehensive super app named 'NBL Infinity.'

Debit and Credit cards 

NBL has pioneered the introduction of credit and debit cards in Bangladesh, offering a safer and more convenient alternative to cash. The bank provides a range of Platinum, Gold, and Silver cards, including the recent launch of EMV chip-based cards and the Mastercard Multi-Currency Debit Card. These cardholders benefit from 24/7 access to banking functionalities and various payment services, contributing to a seamless banking experience.

National Bank is deeply committed to sustainable banking. By adopting alternative energy sources, funding eco-friendly projects, and enhancing digital banking, NBL not only reduces its environmental impact but also makes banking more convenient for its customers. 

At NBL, the focus is on driving sustainable growth. Through eco-friendly practices, the bank aims to lessen its environmental footprint and improve the well-being of communities. Whether it's introducing solar power in branches or financing green projects, NBL is dedicated to building a brighter, more sustainable future. Together, the bank is making banking greener, smarter, and more accessible for everyone.

The writer is the managing director and CEO of National Bank Limited. He is a fellow member of the Institute of Cost and Management Accountants of Bangladesh (ICMAB) and the first Certified Sustainability Reporting Assurer (CSRA) in Bangladesh.