From renewable energy to women-led enterprises, Jamuna Bank is shaping a sustainable finance strategy designed to balance economic progress with social and environmental responsibility
Mirza Elias Uddin Ahmed, managing director of Jamuna Bank. Sketch: TBS
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Mirza Elias Uddin Ahmed, managing director of Jamuna Bank. Sketch: TBS
At Jamuna Bank PLC, I view sustainable finance as the bridge between profitability and responsibility. For a country like Bangladesh—climate-vulnerable yet economically dynamic—sustainable finance is not optional; it is essential. To me, it means channelling capital into areas that drive growth while reducing environmental risks and promoting inclusivity.
For example, financing renewable energy, circular economy initiatives, and climate-resilient agriculture is critical. But equally important is ensuring access to credit for SMEs, women entrepreneurs, and marginalised communities. In our context, sustainable finance is about resilience—enabling Bangladesh to remain competitive while also advancing its Vision 2041 and SDG commitments.
The government and Bangladesh Bank deserve recognition for laying the groundwork. Policies such as the Sustainable Finance Policy, ESRM guidelines, and refinancing schemes have created momentum across the sector. However, I believe these measures need strengthening to match the scale of our challenges. We still require a harmonised green taxonomy, broader incentives like tax benefits, and stronger credit guarantee mechanisms.
Infograph: TBS
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Infograph: TBS
Another issue is capacity. Many businesses—especially SMEs—struggle to prepare bankable proposals. Unless policies also provide support for technical assistance and project structuring, the pipeline for green projects will remain thin. So, while the regulatory framework is directionally sound, it must evolve further if Bangladesh is to unlock its full potential.
Encouragingly, we are already witnessing growing demand for green and ESG-linked products. Export-oriented industries such as garments and textiles are seeking financing for energy-efficient machinery, rooftop solar systems, and effluent treatment plants. This is driven not only by cost savings but also by international buyer requirements. On the social side, women entrepreneurs and MSMEs are increasingly seeking financing for housing, healthcare, and education.
That said, demand is often constrained by limited technical knowledge and difficulties in meeting ESG reporting standards. Despite these hurdles, I am confident demand will continue to accelerate as businesses realise that sustainability is no longer an ethical choice but a global compliance standard.
Infograph: TBS
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Infograph: TBS
From my experience, the single largest barrier is project bankability. Many potential borrowers lack feasibility studies or technical audits, and SMEs in particular struggle to present investment-ready proposals. A second challenge is tenor mismatch—most sustainable projects require long repayment terms, yet our banking system is built on short-term deposits. Accessing foreign capital is also limited by currency risks. Finally, the absence of standardised data and verification systems creates hesitancy.
These barriers can only be addressed through blended finance, stronger reporting standards, and capacity development—steps that will encourage both local and foreign investment.
At Jamuna Bank, we have already begun embedding ESG considerations directly into our lending framework. Every loan appraisal now incorporates environmental and social criteria, particularly for high-impact sectors like textiles, leather, and agro-processing. We ensure compliance with environmental regulations, and in higher-risk cases, we conduct detailed due diligence that includes community impact and governance assessments.
Equally important is post-disbursement monitoring. We visit sites, gather data, and track performance to ensure that commitments are being met. We are also training our teams to embed ESG thinking into everyday banking decisions. For us, ESG is not a box to be ticked; it is central to risk management and long-term growth.
One project that highlights this approach is our financing of Shah Fatehullah Textiles Mills Ltd., a platinum-rated, LEED-certified spinning mill. Very few spinning mills in Bangladesh have achieved such recognition, and we are proud to have played a role in this milestone. By financing energy-efficient machinery and securing refinancing from Bangladesh Bank, we helped the project reduce energy consumption and emissions while maintaining financial flexibility. This initiative not only benefitted our client but also set a benchmark for sustainability within the textile value chain.
Looking ahead, I believe sustainable finance will become mainstream in Bangladesh within the next decade. Climate risks, international buyer expectations, and regulatory pressures will make ESG integration unavoidable. I expect to see growth in sustainability-linked loans, green bonds, and blended finance models. Emerging sectors such as distributed renewable energy, electric mobility, and climate-resilient agriculture will further drive financing demand.
For banks like ours, sustainable finance will serve both as a risk management tool and a growth opportunity. It will shape not only our portfolios but also our long-term competitiveness in a changing global financial landscape.
To businesses and financial institutions just beginning their sustainability journey, my advice is simple: start small, but start now. Businesses can begin with practical steps—energy audits, water efficiency measures, and improved worker safety. Financial institutions should embed ESG into their risk frameworks and pilot green products, even on a small scale.
Equally important is collaboration—whether with regulators, industry associations, or development partners. Transparency also matters; reporting on sustainability progress builds trust with both buyers and financiers. The sooner businesses and banks integrate sustainability, the greater their resilience and long-term prospects will be.
Sustainable finance, to me, is not just a banking strategy—it is a national imperative. For Bangladesh, it is the key to building an economy that is not only competitive but also resilient and inclusive.
