BRAC Bank unveils Bangladesh’s first climate risk report under IFRS standards

BRAC Bank has published 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 (ISSB).

With publication of the maiden IFRS Report, BRAC Bank becomes the only bank in Bangladesh, and one of the few globally, to adopt the newly introduced standards—positioning itself at the forefront of transparency, corporate responsibility, and climate governance both nationally and internationally, according to a media release. 

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

BRAC Bank has taken a pioneering step by voluntarily integrating these frameworks into its 2024 reporting—setting a precedent for financial institutions in emerging economies, the release says. 

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

It includes detailed metrics on board-level ESG oversight, 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 discloses financed emissions, applying the global PCAF (Partnership for Carbon Accounting Financials) methodology—an advanced climate impact measurement practice rarely implemented in developing markets.

This first-of-its-kind report in Bangladesh offers practical insights for regulators, investors, development partners, and customers seeking responsible and future-oriented financial institutions, according to the release. 

Tareq Refat Ullah Khan, Managing Director and CEO (Current Charge), said: “At BRAC Bank, we believe transparency and accountability are the bedrock of responsible banking. This report is our way of telling the full story—not just about profits, but about our planetary impact. We are convinced our report will set a benchmark not only in the banking industry but also in corporate sector of Bangladesh and inspire other institutions to follow suit.”