IDLC Finance Limited Statement on green banking as of 31 ...

IDLC Finance Limited Statement on green banking as of 31/12/2016

Policy Formulation and Governance

1.1.1 Formulation and Board/Regional Head approval of Green Banking Policy

Yes No Remarks

Yes An amended version of the Green Banking Policy, incorporating observations of FMO, has been approved by IDLC Board on June 23, 2014.

1.1.2 Allocation of Fund in the Budget for Green Banking (In Million Taka)

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Remarks

Green Finance BDT 250 Million

BDT 250 Million

BDT 250 Million

BDT 250 Million

BDT 1000 Million

Climate Risk Fund - BDT 0.02 Million

BDT 0.75 Million

BDT 0.23 Million

BDT 1.00 Million

Marketing, Training and Capacity Building

BDT 0.15 Million

BDT 0.02 Million

- BDT 0.01 Million

BDT 0.18 Million

1.1.3 Utilization of Funds (In Million Taka) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Remarks

Green Finance BDT 114.5 Million

BDT 145.2 Million

BDT 186.77 Million

BDT 339.95 Million

BDT 589.53 Million

Climate Risk Fund - BDT 0.011 Million

BDT 0.50 Million

BDT 0.16 Million

BDT 0.671 Million

Marketing, Training and Capacity Building

BDT 0.1029 Million

BDT 0.011 Million

- BDT 0.0077 Million

BDT 0.1216 Million

1.1.4 Formation of Green Banking Unit

Yes No Composition (Name, Designation & Department) Remarks

Yes Mr. Md. Shahriar Rahman, Senior Executive Officer, Green Banking Desk Mr. Kazi Farhan Zahir, DGM, Head of Structured Finance, Corporate Mr. Farzana Islam Lisa, AGM, Corporate Mr. Md. Jobayer Alam, DGM, Head of Strategic Planning Mr. Rashedul Haque, AGM, Head of Products and Marketing, Consumer Mr. Adnan Rashid, AGM, Credit Risk Management(CRM) Ms. Shamima Akter, AGM, Human Resource Department Mr. Rahat Azim, Manager, IT Ms. Tabassum Abedin, Sr. Manager, Admin Mr. Mahbub-ul-Kader, AGM, ICC (Internal Credit and Compliance) Ms. Sherifa Amreen, Manager, Marketing Communications Ms. Ayesha Haque, Manager and Head of CSR

1.2 INCORPORATION OF ENVIRONMENTAL RISK IN CORE RISK MANAGEMENT


1.2.1 No of projects applicable for environmental due diligence (EDD)

122 105 100 96 423

1.2.2 No of projects rated (Environmental Risk Rating sanctioned)

Low 86 72 69 74 301

Moderate 4 1 3 9 17

High 32 32 28 13 105

1.2.3 Rated Projects Financed

Total Number (Disbursed) 141 155 114 110 520

Low 104 118 85 79 386

Moderate 4 2 5 11 22

High 33 35 24 20 112

Total amount disbursed (in Million BDT)

3194.71 2385.03 2654.64 3437.74 11671.12

Low 2331.23 1909.83 2388.45 2676.93 9306.44

Moderate 208.8 187.50 72.96 549.72 1016.98


High 654.68 287.70 192.23 211.09 1345.7

Loan classification as of quarter end (Cumulative)

UC(standard) SMA SS DF BL

No of projects 1359

Amount (in Million BDT) 29931.93

1.3 Initiating in house environment management


1.3.1 No of branches and booths (Data in each quarter will reflect the cumulative figure)

32 branches

2 booths

33 branches

2 booths

34 branches

2 booths

34 branches

2 booths

34 branches

2 booths

1.3.2 No of branches powered by solar energy (Data in each quarter will reflect the cumulative figure)

2 2 2 2 2

1.3.3 No of booths powered by solar energy (Data in each quarter will reflect the cumulative figure)

2 2 2 2 2

1.3.4 Introduction of Green Office Guide or General Instruction

Yes No Remarks

Yes A Green Office Guideline has been approved by the Management on June 24, 2014

1.3.5 Pin points of Green Office Guide or General Instruction

Remarks

The Green Office Guideline focuses on saving electricity, water and paper, and maintenance of a clean and hygienic office environment across branches, through systematic intervention across the following areas:

1. Green Code of Conduct for IDLC Staff; 2. Green Office Premises; 3. Green Technologies; and 4. Staff Training;

1.3.6 Inventory Details Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Remarks

Consumption of Water(In Million Taka) 0.13 0.15 0.14 0.14 0.56

Consumption of Paper(In Million Taka) 0.5 0.6 0.6 0.6 2.3

Energy Consumption (In Million Taka)

Electricity 4.1 6.5 6 5.8 22.4

Gas 0 0 0 0 0

Fuel 2.2 2.5 2.5 2.5 9.7

1.3.6 Others (Please Specify) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Remarks

1.4 Introducing Green Financing (In Million BDT)


ETP No Amount No Amount No Amount No Amount No Amount

For Installation of ETP(Amount Disbursed)

3 47.5 Million

2 47.0 Million

1 13.57 Million

1 50.12 Million

7 148.07 Million

Direct Green

Projects financed having ETP(Full amount disbursed)

- - 2 25.2 Million

1 26.7 Million

1 80 Million

4 131.9 Million

Indirect Green

Bio-gas Plant

Solar panel/Renewable Energy Plant

1 40.0 Million

1 27.5 Million

2 67.5 Million

Direct Green

Solar Energy /Renewable Energy Plant

Indirect Green


Bio-fertilizer Plant

Hybrid Hoffman Kiln (HHK)/ (Conversion from FCK to Zigzag)/Compressed Block

Direct Green

Fire safety 1 40.0 Million

2 8.0 Million

1 6.5 Million

1 10 Million

5 64.5 Million

Direct Green

Green Industry 1 60.0 Million

2 45.0 Million

2 50.0 Million

2 172.33 Million

7 327.33 Million

Direct Green

Energy Efficiency 1 3.0 Million

2 20.0 Million

3 23.0 Million

Direct Green

Green Finance at reduced rate of interest

-

1.5 Utilization of Climate Risk Fund


1.5.1 Fund for part of CSR activities (Event) related to climate change (In million taka)

- BDT 0.011 Million

BDT 0.5 Million

- BDT 0.511 Million

1.5.2 Fund for part of CSR activities (project) related to climate change (In million taka)

- - - BDT 0.16 Million

BDT 0.16 Million

Tree Plantation for planting 200 samplings at BCIC College, BCIC School at Mirpur and Lalmatia Womens’ College. The plantation was conducted with support from Tarru Pallab, a voluntary organization managed by renowned environmentalists in Bangladesh.

1.6 Introduction Green Marketing

1.6.1 Introduction of Green banking Products (Please Specify)

During the last quarter of the year 2016, IDLC Green Desk put emphasis on IDLC’s commitment

towards sustainability and attended several workshops as a part of green marketing & capacity

building program.

IDLC GBU attended a half day event on renewable energy on November 29 from 9:30-13:00 at

Gardenia Grand Hall, Gulshan- 2 titled “Renewable Energy -Sustainable Growth in Textile Industry”

organized by Swedish multinational clothing-retail company H&M (Hennes & Mauritz AB). At the

event, IDLC shared it’s experience on green energy financing and showcased green financing

products especially on renewable energy financing what are available for an investor.

On 28th November, 2016 IDLC hosted FMO at their premises for a discussion session as a part of

environmental & social due diligence review process. A factory visit was arranged as a study Tour

comprising the representatives of FMO & IDLC to learn best practices and to share experience in

the field of environmental & social compliance management by IDLC. Throughout this experience

sharing session, IDLC officials showcased IDLC’s green finance financial modalities and IDLC’s

experience in its journey towards sustainability.

In this quarter, IDLC’s Chittagong branch the prestigious LEED (Leadership in Energy and

Environmental Design) Gold Certification from USGBC (United States Green Building Council) under

the category of commercial interior. The branch is the first of its kind to achieve such

acknowledgement under the aforementioned category among the financial institutions of

Bangladesh. This is another milestone of IDLC’s journey as the best financial institution to practice

sustainable business in Bangladesh. (Annexure II A)

Green Desk is also preparing a new brochure for green marketing and as the agreement with IFC

regarding their contribution in developing such thing.

1.7 Employee Training, Consumer Awareness and Green Event

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Total Remarks

1.7.1 No of programs/trainings/seminar/ workshops/awareness program exclusively conducted for Green Banking

9 6 7 5 27 Representatives of IDLC attended a

workshop titled "Reducing Water &

Recovering Heat” dated 16th

November, 2016 at Hotel Westin,

Dhaka by International Finance

Corporation (IFC) Bangladesh PaCT

team in collaboration with Textile

Technology Business Center (TTBC).

The objective for organizing the event

was to showcase some of the different

ways how heat can be conserved and

reused, and water usage can be

reduced in the textile sector, and how

this can have an impact on the overall

production efficiency and

sustainability. Representative of IDLC

chaired the Panel Discussion session to

share the problems & prospects of

resource efficiency financing in

Bangladesh. (Annexure II B)

1.7.2 No of participants covered 43 59 36 34 172

Employees 34 32 14 24 104

Customers 9 27 22 10 68 Representatives of IDLC attended a convention on green brick was held on 11th December, 2016 in a city hotel aimed at creating awareness among the people for sustainable development of

1.7.3 Green Events (Please Specify) 1 1 1 1 4

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Total Remarks

the country. Bangladesh Infrastructure Finance Fund Limited (BIFFL) organized the convention titled ‘Green Brick Convention-2016’. Mr. AMA. Muhith, MP, honorable Finance Minister graced the occasion as a Chief Guest. Among others, Executive Director of Bangladesh Centre for Advance Studies Dr. A Atiq Rahman, Country Director of Asian Development Bank Kazuhiko Higuchi and Bangladesh Bank Governor Fazle Kabir will present on the occasion.

This convention brought together the environment expert, consultant & solutions providers, interested entrepreneur, financier, officials of different ministries along with development partners. (Annexure II C)

1.8 Disclosure of green banking activities

Disclosure In Status Remarks

Annual Report Yes In continuation with the previous years, green banking activities and its achievements has been covered exclusively on IDLC’s Annual Report 2015 and Annual Sustainability Report 2015.

Website Yes Green Banking activities are updated regularly under the section “Green Banking and Sustainability” in IDLC’s website (www.idlc.com). Furthermore, different news and press releases are also available in the website news section.

Media Yes Throughout this quarter, IDLC’s green banking activities were picked by several printing media & DF’s newsletter as one of the prominent one in promoting sustainable business.

http://www.idlc.com/

Disclosure In Status Remarks

Preparation of Independent green banking and sustainability report

Yes IDLC as the 1st financial institution has been publishing an independent Sustainability Report following the GRI (Global Reporting Initiatives) Guidelines since 2011. In continuation with that, IDLC will publish its Annual Sustainability Report 2016 featuring the IDLC’s commitment towards CSR & Green Banking Activities over the year 2016.

2.1 Sector specific environment policy

2.1.1 Formulation of sector specific Environment Policy (Under phase 2) (If yes then please give pin points in a separate sheet)

Yes No Remarks

In Process

IDLC with support from FMO and FI Konsult, is implementing an ESMS (Environmental and Social Management System) across the organization. It is on full rollout across the organization from March 1, 2016. With several improvements along the way, the system is now an integral part of IDLC’s credit risk management framework.

2.1.2 Name of the sectors for which specific environment policy formulated

Following sectors has been decided considering sector specific exposure and their environmental and social risk: Textiles, apparels and accessories, power and energy, iron and steel, building materials, cement, glass, ceramics and pipes, pharmaceuticals, food and beverage, telecommunication, transport, paper and packaging etc.

2.2 Green Strategic Planning

2.2.1 Formulation of green strategic planning (If yes then please describe in a separate sheet)

Yes No Remarks

In process

2.3 Environment Risk Management Plan

2.3.1 Formulation of Banks specific environmental risk management plan and guideline

Yes No Remarks

Yes IDLC fulfils Bangladesh Bank Environmental Risk Management (ERM) guideline for FI dated January, 2011 and the ECR-1997 standard within its organizational framework. IDLC also complies with the UNGC and UNEP FI principles on a voluntary basis being the only listed FI in Bangladesh. IDLC have been implementing Environmental and Social Management System (ESMS) from March 1, 2016 to compute

scoring of risk of different sectors, under different business segment. With a developed categorization tool which was built upon the ERM guideline of Bangladesh Bank, IFC exclusion list & ADB safeguard for financing, environmental & social action plan for financial activities is on full roll out across its credit risk management framework. Meanwhile, IPFF cell of Bangladesh Bank arranged a public consultation meeting on Environmental & Social Policies and Procedures to be followed by the participating banks and financial institutions (PFIs) and subprojects in getting long term financing under proposed Investment Promotion & Financing Facility (IPFF) project II, to be financed by the World Bank and GoB and implemented by Bangladesh Bank dated 30th November, 2016 at Jahangir Alam Conference Room (4th floor, main building) of Bangladesh Bank, Head Office, Motijheel, Dhaka. As per Bangladesh Bank’s requirement, GBU submitted a written feedback on this draft version of ESRM guidelines of IPFF II and after the publication of the new guideline, IDLC will make necessary changes to maximize our opportunity from IPFF II credit facility.

Annexure-1

(Taka in million)

Total Loan

Disbursement

(Funded)

Direct Green

Finance

(Disbursement)

Indirect Green

Finance

(Disbursement)

Toal Green

Finance

(Disbursement)

Direct Green Finance

as % of Total Loan

Disbursement

10,532.54 259.95 80.00 339.95 2.47%

Amount (in million

Taka )

Amount (in million

Taka )

Setting up of Bio-gas

Plant

in existing Dairy &

poultry Farm

Solar Home

System

Integrated Cow

Rearing

and Setting up of Bio-

gas Plant

Solar Micro/Mini

Grid

27.50

Organic Manure from

Slurry

Solar Irrigation

Pumping System

Mid Range Bio-gas

Plant

Solar PV

Assembly Plant

Biomass based large

scale Bio-gas Plant

Solar PV Plant

capable to produce

1 MW or more

Power

Poultry & Dairy based

large scale Bio-gas

Plant

Solar Cooker

assembly Plant

Solar Cooker

assembly Plant

Hydro-Power Hydropower (Pico,

Micro & Mini)

Solar Water

Heater Assembly

Plant

Wind- PowerWind Energy driven

Power Plant

Solar Air Heater &

Cooling System

Assembly Plant

Solar Energy

Driven Cold

Storage

Surface Water

Purification Plant

using Solar Pump

Progess of Green Finance

October-December 2016

Renewable Energy

IDLC Finance Limited

Details of Green Finance

Bio-gas

Solar Energy

Amount (in million

Taka )

Amount (in

million Taka )

Substitution of

Conventional Lime

Kiln by Energy

Efficient Kiln

Energy efficient

Improved Cook

Stove(ICS)/ICS

Renewable/Hybrid

Cook Stove

Assembly PlantSubstitution of

Conventional lighting

system, electronic

material, Boiler with

energy efficient

alternatives on the

basis of Energy Audit

LED Bulb/Tube

Manufacturing Plant

Auto sensor power

switch assembly Plant

LED Bulb/Tube

Assembly Plant

Waste Heat Recovery

System

Amount (in million

Taka )

Amount (in

million Taka )

Methane Recovery

from Municipal waste

& to produce Power

Auto sensor power

switch assembly

Plant

Municipal waste to

Compost

Hazardous waste

treatment facility

Amount (in million

Taka )

Amount (in

million Taka )

Biological Effluent

Treatment Plant

(ETP) 50.12

Waste Water

Treatment Plant

Combination type

(Chemical

+Biological) of ETP

Sewage Water

Treatment Plant

Conversion of

Chemical ETP to

Combination type

(Chemical+

Biological) of ETP

Central Effluent

Treatment Plant

Amount (in million

Taka )

Production of

Burnable Oil from

waste Tire by the

Process of Pyrolysis

Energy Efficiency

Solid Waste Management

Liquid Waste Management

Alternative Energy

Amount (in million

Taka )

Setting up of

Hybrid Hoffman

Kiln(HHK)/Tunnel

Kiln/equivalent

technology in Brick

manufacturing

Industry

Amount (in million

Taka )

Compressed Block-

Brick

Autoclaved Aerated

Concrete

Amount (in million

Taka )

Amount (in

million Taka )

Waste Paper

Recycling Plant for

production of

recycled paper

Recyclable Poly

Propylene Thread &

Baggage

Manufacturing Plant

Plastic Waste

Recycling Plant

(PVC, PP, LDPE,

HDPE,PS)

PET Bottle

Recycling Plant

Recyclable Baggage

Manufacturing Plant

Solar Battery

Recycling Plant

Used Lead Acid

Battery Recycling

Plant

Amount (in million

Taka )

Establishment of

Green Industry 172.33

Amount (in million

Taka )

Ensuring Work

Environment and

Security of Workers

of Textile and

Garments Industry

10.00

Amount (in million

Taka )

Vermicompost

Palm Oil Plant

Amount (in million

Taka )

Fire Burnt Brick

Recycling & Recyclable Product

Green Industry

Others

Miscellaneous

Safety and Security of Factory

Non Fire Block Brick

HAS FULFILLED THE REQUIREMENTS OF THE FOLLOWING LEVEL OF CERTIFICATION ESTABLISHED BY THE U.S. GREEN BUILDING COUNCIL

IN THE LEED GREEN BUILDING RATING SYSTEMTM AND VERIFIED BY THE GREEN BUILDING CERTIFICATION INSTITUTE.

S. RICHARD FEDRIZZI, PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL

MAHESH RAMANUJAM, PRESIDENT GREEN BUILDING CERTIFICATION INSTITUTE

CHITTAGONG BRANCH,IDLC FINANCE LIMITED

Chittagong, Bangladesh

LEED 2009

LEED FOR COMMERCIAL INTERIORS

November 2016

11/25/2016

Arif KhanCEO & Managing DirectorIDLC Finance LimitedIDLC Corporate Head Office Bay’s Galleria (1st Floor), 57 GulshanAvenueDhaka, Dhaka 1212Bangladesh

Greetings,

On behalf of the U.S. Green Building Council, I congratulate you onachieving LEED certification for Chittagong Branch, IDLC Finance Limited.Your project has achieved LEED gold certification under the LEED forCommercial Interiors Rating System with a total of 62 points.

LEED certification identifies Chittagong Branch, IDLC Finance Limited asa showcase example of sustainable design and demonstrates yourleadership in transforming the building industry. In honor of this impressiveachievement and in appreciation of your participation in LEED, we arepleased to present you with the enclosed certificates recognizing youraccomplishment.

Now that your project has achieved LEED certification, we encourage youto share your project with the green building community. Please follow theprompt in LEED Online to make it a “public” project. Public projectsappear in our LEED project directory, in our Green building InformationGateway (GBIG), and you will have the ability to share your story bycreating a LEED project profile to post to USGBC.org.

Congratulations on earning LEED certification, and thank you for yourcommitment to our common goal of building a healthy, sustainable future.

Sincerely,

S. Richard Fedrizzi CEO & Founding ChairmanU.S. Green Building Council

Annexure II B

Workshop on “Reducing Water and Recovering Heat” organized By IFC PaCT team

Annexure II C

BIFFL Green Brick Convention 2016

IDLC Finance Limited Statement on green banking as of 31 ...

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