How green is the green banking investment in Bangladesh? A Paradox of Green Banking Practices

Banking sector plays a critical role in economic development while their activities are also equally responsible for social and environmental damage such as violation of human rights, loss of biodiversity, climate change in Bangladesh. A careful examination of investing and financing activities disclosed in annual reports of 35 selected banks suggest that, while banks are taking several in-house and external green initiatives, many of them are also actively investing and funding projects like shipbreaking that are a threat to environmental sustainability and prone to the human rights violation. This study urges the government, policymakers, and central bank in developing policies and regulating banks; stakeholders in understanding banks’ commitment and actions to safeguard the environment and human rights, and managers in measuring, reporting and mitigating the social and environmental impact through their current and future lending policies.