BRAC Bank unveils IFRS-aligned climate risk report

BRAC Bank has unveiled the country's first independent IFRS S1 and S2 Report, a globally aligned framework for climate and sustainability risk disclosure developed by the International Sustainability Standards Board.

With the release of this inaugural IFRS report, the bank becomes the sole financial institution in Bangladesh, and among a select few worldwide, to adopt the newly introduced standards, said a press release.

This positions BRAC Bank at the forefront of transparency, corporate responsibility, and climate governance, both nationally and internationally.

Introduced in 2023, the International Financial Reporting Standards (IFRS) S1 and S2 offer a unified, investor-oriented framework for disclosing sustainability- and climate-related financial information.

In a pioneering move, BRAC Bank has voluntarily integrated these frameworks into its 2024 reporting cycle, setting a benchmark for financial institutions in emerging economies.

Commenting on the report, Tareq Refat Ullah Khan, managing director and CEO (current charge) of the bank, stated, "This report is our way of telling the full story—not just about profits, but about our planetary impact."

He added, "We are confident that our report will set a benchmark not only within the banking sector but across the broader corporate landscape of Bangladesh, inspiring other institutions to follow suit."

The report provides a comprehensive overview of how BRAC Bank identifies, manages, and discloses its exposure to sustainability and climate-related risks and opportunities.

It features detailed metrics on board-level ESG oversight, the integration of sustainability into business strategy, climate risk management systems, and the bank's full greenhouse gas (GHG) emissions footprint, including Scope 1, Scope 2, and Scope 3 emissions.

Notably, the report includes disclosure of financed emissions, applying the globally recognised the Partnership for Carbon Accounting Financials (PCAF) methodology, an advanced climate impact measurement practice seldom adopted in developing markets.

This report delivers actionable insights for regulators, investors, development partners, and customers seeking accountable and forward-thinking financial institutions.

It reflects BRAC Bank's alignment with both national and international frameworks, including the United Nations Sustainable Development Goals (UN SDGs), Bangladesh's Nationally Determined Contributions (NDCs), and the Bangladesh Bank's Green Finance Policy.