“SBP BSC Virtual Summer

Internship Presentation”

Green Banking Guidelines

Presenters
Group B
 Green Banking Guidelines

• Green Banking is an emerging concept for Environment sustainability it

means promoting Environment friendly practices for sustainable growth and
reduces the carbon footprint from the banking industry.
• Green Banking acknowledges responsibility of the financial sector in
supporting policies initiatives for transforming a country’s economy towards
a low carbon and climate resilient economy. Green Banking envisions
fixation of environmental consciousness as part of organizational culture
and reorientation of banking products, services and operations to reduce
environmental impact of banks and the economy.
• Importance of GRG
• Green Banking Products and Services
• Challenges to the Green Banking Guidelines
 Comparison
Green Banking in Green banking in India
Pakistan
In 2017, the SBP launched The Government of India has
green banking guidelines issued guidelines/instructions
(GBGs) to promote to banks on Green Initiatives.
environmental risk In order to implement the
management within banks green initiatives of the
and encourage climate government
finance which aims at
reducing environmental
vulnerabilities
These Guidelines deal with All public sector banks and
the following three areas: all regional rural were asked
Risk Management to:
Business Facilitation • Increase use of Electronic
• Own Impact Reduction Payment
• Increase use of Core
Banking Solution (CBS)
• Enviromental
sustainability
• Offer centralized payment
system
Green banking in
Bangladesh
The central bank of
Bangladesh has issued
policy guidelines for green
banking that aim to
prevent environmental
degradation and ensure
sustainable banking
practices.
The Guidelines cover the
incorporation of
Enviromental risk
management
• Green financing
• Climate risk funds
• Green marketing
• Online banking
• Environmental resource
management
• Green
Green finance
Pakistan India Bangladesh
financing is to
The SBP introduced The State Bank of India Implemented a
increase level green banking guidelines introduced the Green comprehensive green
of financial to promote green finance Channel as an finance policy to
in the country safeguard environmental
flows (from initial step of green
degradation and ensure
banking. The State Bank
banking, included terms sustainable
micro-credit, of environmental risks for banking practices. Banks
assessing the borrowers have included
insurance and environmental and
investment) climate change risk as
from the part of existing risk
methodology to assess a
public, private potential borrower.
and not-for- Banks/DFIs are in As per the directives of The policy was divided
profit sectors process of the State Bank of India, into three phases. In
banks/DFIs phase I,
to sustainable formulating green have taken necessary banks/DFIs have to
development banking policies to measures for green develop green banking
be implemented for banking in terms of policy. Phase II suggests
priorities. promoting policies as well as the formulating sector-
sustainable banking branch banking. specific environmental
However, a lot more policies, In phase III,
efforts are required to banks/DFIs are expected
make this process to address the entire
rigorous. ecosystem
 Possible policies for GBG
Policies for Green Banking:
1. The Bank would establish risk management procedures to identify, assess,
mitigate and monitor environmental risks arising from operations.
2. The Bank would allocate funding resources for green business facilitation
that impact on improving the carbon foot print and is more resource efficient.
• 3. The Bank would setup its branches and offices in such a way that its
operations use minimum energy and other resources leading to own impact
reduction having minimum impact on the environment.
 Conclusion
Conclusion
Promoting Green banking is the need of today’s world.
The disastrous impact of recent storms, floods, droughts, and excessive heat
that the world recently experienced, motivate us to think about reducing use of
Carbon to conserve our natural environment.
Green Banking concept will be beneficial for both the banking industries and
the economy. Not only “Green Banking” will ensure the greening of the
industries but it will also facilitate in improving the asset quality of the banks in
future.
• All this will ultimately lead to better human life and facilities as well as
sustainable developments without spoiling or destroying nature.

THANK YOU