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.

Stakeholder Identification and Consultation
As part of its impact analysis process, IDLC follows the regulatory instructions from respective authorities and regularly consults with them regarding challenges, priorities, and future developments. IDLC’s regulatory stakeholders include Bangladesh Bank, the Department of Financial Institutions and Markets (DFIM), the Department of Environment (DoE), and others. Additionally, IDLC maintains close interactions with the Sustainable and Renewable Energy Development Authority (SREDA), whose expertise in sustainability is considered a valuable asset.

Since IDLC’s corporate clients are primarily concentrated in the Textile & RMG sector, IDLC actively engages with various associations and forums such as BGMEA, BKMEA, IFC-PACT, among others, to address industry-specific issues. Through stakeholder engagement, IDLC gains insights into current and anticipated future trends across different sectors, which helps in shaping and aligning its sustainability strategies.

Furthermore, IDLC recognizes the importance of civil society as a key stakeholder and periodically engages with civil society organizations by participating in community events and providing grants, non-profit sponsorships, scholarships, and donations to support sustainability initiatives and foster social inclusion. These efforts reflect IDLC’s commitment to SDGs 4, 5, and 6.

How did IDLC identify and work on strategic business opportunities to increase positive and reduce negative impacts?

In its 2025 PRB Responsible Banking Progress Statement IDLC reports that it identified and worked on strategic business opportunities to increase positive and reduce negative impacts as follows:

Based on its impact analysis and additional studies, IDLC identified that its corporate clients, involved in various factories and industries, are particularly interested in concessional financing solutions to support their transition and sustainability initiatives. Accordingly, IDLC engages with Bangladesh Bank to avail their refinancing schemes that promote lower GHG emissions, energy efficiency, renewable energy, waste management, and green industry practices for its customers. IDLC also provides guidance to its clients to ensure compliance with the requirements of these refinance schemes. IDLC’s portfolio information for 2024 is outlined below:

2024	Green Finance	Sustainable Finance
Total disbursement	BDT 5,855.46 million (USD 48.79 million)	BDT 22,366.71 million (USD 186.39 million
YoY disbursement growth	(12.36%)	16.23%
Portfolio size	BDT 12,479.79 million (USD 103.99 million)	BDT 39,874.50 million (USD 332.29 million)
YoY Portfolio growth	32.11%	(6.02%)

Within IDLCC’s green finance portfolio, the following segments make significant contributions:

Segment	Portfolio Size
Energy & resource efficiency	BDT 5,287.56 million (USD 44.06 million)
Green/Environment friendly establishments	BDT 2,234.10 million (USD 18.62 million)
Renewable energy	BDT 1,087.87 million (USD 9.07 million)

(USD 1 = BDT 120 as of 1 January 2025)

IDLC is consistently committed to expanding its business in green and sustainable finance solutions. Each year, a clear target is established in line with Bangladesh Bank’s guidance and regulations. For 2025, based on the current portfolio, IDLC set a disbursement target of 5% for green finance and 40% for sustainable finance. These ambitious milestones demonstrate IDLC’s unwavering dedication to sustainability and societal well-being.

 

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

• • • 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.

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/-352537.pdf

Note to IDLC: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

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

• • • 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.

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

Note to IDLC: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.