Case study: How IDLC works with its clients and customers to encourage sustainable practices
IDLC is a prominent financial institution in Bangladesh that provides products and services across the Corporate, SME, Retail, and Capital Market sectors. IDLC’s portfolio composition includes approximately 29% Corporate clients, 40% SME clients, and 31% Retail (Consumer) clients. IDLC is dedicated to the core principles of sustainable development—aiming to enhance economic prosperity, foster environmental sustainability, and encourage equitable and inclusive societal growth. IDLC is a signatory of the Principles for Responsible Banking (PRB) and is, accordingly, working with its clients and customers to encourage sustainable practices and enable sustainable economic activities. Tweet This!
This case study is based on the 2024 PRB Reporting and Self-Assessment Template by IDLC, prepared in relation to its implementation of the PRB, that can be found at this link. Through all case studies we aim to demonstrate what ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Which Principles for Responsible Banking have been addressed?
The Principles for Responsible Banking addressed in this case are:
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- Principle 3: Clients and Customers
- Principle 4: Stakeholders
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With this case study you will see:
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- How IDLC proceeded with stakeholder identification and consultation, and
- How IDLC worked with its clients and customers to encourage sustainable practices and enable sustainable economic activities
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Stakeholder identification and consultation
Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.
In conducting its impact analysis, IDLC adheres to the regulatory guidelines set forth by the relevant authorities and regularly consults with them on challenges and priorities. This includes organizations such as the Central Bank of Bangladesh (Bangladesh Bank), the Department of Environment (DoE), and the Sustainable and Renewable Energy Development Authority (SREDA), all of which relate to the Sustainable Development Goals (SDGs). IDLC identified these stakeholders through a stakeholder mapping exercise that took into account pertinent national policies and guidelines. Additionally, IDLC engages with various associations and forums, such as BGMEA, BKMEA, and IFC-PACT, to tackle industry-specific issues.
How did IDLC work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?
In its 2024 PRB Reporting and Self-Assessment Template IDLC reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:
Since 2014, IDLC has been providing concessional financing for green projects and initiatives to its clients while promoting awareness about adopting environmentally friendly technologies and approaches. To facilitate this, IDLC first trained its client-facing employees, equipping them to effectively engage with clients, particularly in high-impact sectors. IDLC is beginning to witness gradual changes in the adoption of eco-friendly technologies, such as certified Green Buildings, energy and resource-efficient solutions, and waste management technologies. IDLC has identified clients in high-impact sectors—including energy, natural resources, transport, and agriculture—and are initiating conversations with them about their transition plans and identifying opportunities for support. IDLC continues to encourage its clients to undertake investment-grade energy audits and pursue various certifications, while it also leverages the refinance facilities offered by the Central Bank of Bangladesh (Bangladesh Bank).
UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet
With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.
FBRH Principles for Responsible Banking (PRB) Assurance:
First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience
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- FBRH is a GRI Certified Training Partner (Global), ISEP Training Centre and a member of CPD.
- FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
- FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.
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The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.
References:
This case study is based on published information by IDLC, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://web.idlc.com/uploads/Unep-files/-298288.pdf
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