Eco-efficiency adopted by banks: Greening the heart of finance

The banking sector in Bangladesh has long been associated with financial discipline, professionalism, and a highly structured corporate culture. Yet today, as climate risks deepen and sustainability takes centre stage globally, banks are being asked to assume a new role: champions of environmental responsibility. The shift is not cosmetic. It is a response to a growing recognition that banks are not only financiers of the economy but also major institutions whose operations, culture, and policies directly influence environmental outcomes.

At the heart of this transformation lies the concept of eco-efficiency — delivering more value with fewer environmental costs. Across Bangladesh, eco-efficiency is gradually becoming embedded in banking practice. Rooftop solar panels, digital-first operations, paperless systems, energy-efficient buildings, and even rethinking the formal "suit-and-tie" dress culture are now part of an evolving conversation. The once conservative and tradition-bound banking sector is slowly reimagining itself as a greener and more responsible industry.

City Bank PLC has emerged as one of the early leaders in embedding eco-efficiency within its operational framework. Mohammad Firoz Alam, the Bank's Chief Risk Officer, emphasises the breadth of its approach.

"City Bank is committed to operating in an eco-efficient and sustainable manner, integrating environmental and social considerations into its internal operations," he explains. "To reduce its environmental footprint, City Bank is progressively installing rooftop solar and Solar Home Systems at branches, sub-branches, and ATMs. The Bank also emphasises digitalisation and a 'Go Paperless' strategy by leveraging digital documentation, collaboration tools, and measures to reduce printing. Energy efficiency is further enhanced using LED lighting, energy-efficient devices, motion and occupancy sensors, daylight-responsive dimming, and behavioural awareness.

Staff awareness programmes, Environment Week campaigns, and gender diversity initiatives illustrate that eco-efficiency is not only about technology or infrastructure but also about cultivating the right values and behaviours. The Bank sees sustainability as a culture that must be lived daily, not merely a target in annual reports.

Dhaka Bank PLC offers another compelling example of how eco-efficiency is becoming mainstream in banking. Mukarram Hossain Chowdhury, Senior Executive Vice President, underscores the Bank's steady transition to greener operations.

"At Dhaka Bank, sustainability starts within our own operations. We are steadily transitioning to eco-efficient practices by digitising processes—such as online bill submission—to reduce paper usage, and by installing energy-efficient lighting across our head office and branches. We are also integrating hybrid vehicles into our fleet to improve fuel efficiency. In parallel, we promote digital banking solutions which enhance customer convenience while reducing commuting-related emissions."

Eastern Bank PLC (EBL) has pushed the eco-efficiency conversation further by embedding sustainability directly into its physical infrastructure. Managing Director Ali Reza Iftekhar highlights the green transformation beginning with the Bank's head office.

"At Eastern Bank PLC, we believe true transformation begins within. Our journey toward eco-efficiency starts at our Head Office, a green-certified building designed to minimise environmental impact. Solar glass louvers generate 16 kW of clean electricity daily, while rainwater harvesting and on-site wastewater treatment systems reduce reliance on scarce natural resources. The premises are also a plastic-free zone, where single-use bottles and folders have been replaced with sustainable alternatives."

This infrastructural innovation is complemented by a strong digital-first mindset. EBL has streamlined LC documentation, cutting paper use by nearly half. Its platforms — such as EBL Connect and SkyPay — are steadily reducing reliance on cash-based systems. In 2024 alone, SkyPay enabled over 10 million cashless transactions, while the Bank's digital onboarding for non-resident Bangladeshi customers expanded financial inclusion.

EBL's approach demonstrates how eco-efficiency can be embedded in both brick-and-mortar design and everyday customer processes. Sustainability is not treated as an add-on but as an organising principle across the Bank's operations.

Prime Bank PLC is another institution that has made eco-efficiency a defining element of its internal culture. Deputy Managing Director and Chief Risk Officer, Md. Ziaur Rahman, points to the Bank's success in weaving sustainability into both strategy and daily practice.

"Prime Bank PLC has made significant progress in this area by integrating sustainability into both its strategic framework and day-to-day operations. The Bank has introduced energy-efficient lighting, HVAC systems, insulation, motion-sensor lighting, and low-energy appliances across its facilities. Furthermore, the adoption of digital statements, e-signatures, and cloud-based documentation has drastically cut down on paper consumption. Prime Bank is also transitioning its corporate vehicle fleet toward electric and hybrid models, reinforcing its commitment to eco-efficient practices."

NCC Bank PLC has undertaken a series of effective initiatives to bring eco-efficiency into its daily operations. Across both its Head Office and branch network, the Bank has introduced sensor-based lighting and sensor-controlled water distribution systems, while also maximising the use of natural daylight to reduce dependence on electricity. These measures not only lower energy and water consumption but also create a more sustainable working environment.

Alongside resource management, NCC Bank is actively promoting a paperless culture. Official communication increasingly relies on e-mail rather than printed documents, while customer services are also becoming greener. The Bank has launched its Green PIN service for cardholders, allowing PINs to be generated digitally, and has discontinued thermal paper receipts at ATMs to cut down on waste.

Eco-efficiency is not only about infrastructure or digital systems. It also requires cultural change, and sometimes that means rethinking long-held traditions. Professor Main Uddin of the Department of Banking and Insurance at Dhaka University highlights one such issue: the dress culture of bankers.

"In Bangladesh's banking sector, the 'suited-and-booted' dress code has long been a symbol of professionalism," he observes. "Yet beneath this polished image lies a contradiction: the country's hot and humid climate makes such attire impractical, forcing banks to rely heavily on air conditioning to keep employees comfortable. This dress culture drives excessive energy consumption, inflates operational costs, and worsens the carbon footprint of financial institutions."

He suggests that professionalism does not have to mean discomfort or waste. Banks could embrace smart-casual attire, encourage the use of breathable cotton clothing sourced from Bangladesh's own textile industry, and adjust air conditioning settings to the global eco-standard of 24–26 degrees Celsius. By doing so, they would not only save energy but also support local industries and reduce the need for heavy cooling systems.

Taken together, these examples paint a clear picture: eco-efficiency in Bangladesh's banks is no longer an abstract concept but a living, evolving practice. Bangladeshi banks are demonstrating that financial institutions can reduce their environmental impact while maintaining — and in many cases enhancing — customer services and profitability.

Bangladesh is one of the most climate-vulnerable countries in the world, facing rising seas, erratic floods, cyclones, and extreme heat. Against this backdrop, banks embracing eco-efficiency is not a symbolic gesture; it is an urgent necessity. By reducing their own carbon footprints and financing greener projects, banks can both mitigate climate risks and build resilience in the wider economy.

If adopted across the sector, eco-efficiency could transform Bangladesh's banking system into a model of responsible growth. More importantly, it would show that in a nation where climate vulnerability is a daily reality, sustainable banking is not only possible but profitable, practical, and deeply necessary.

For Bangladesh's banks, greening the heart of finance may prove to be one of the most important investments they ever make.