Brac Bank unveils BD’s maiden IFRS S1, S2 reports as per ISSB 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 the publication of its maiden independent 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.

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 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. It addresses key areas such as Governance, Strategy, Risk management, as well as the Metrics related to our organisation.

As Bangladesh faces intensifying environmental risks, this initiative demonstrates how a local bank can incorporate global sustainability standards into its risk architecture, lending portfolio, and strategic direction. BRAC Bank is already advancing sector-level decarbonisation glide paths and strengthening climate stress testing mechanisms.

By publishing this landmark report, BRAC Bank reinforces its leadership in climate governance and strengthens its credibility as a partner for international investors and ESG rating agencies. For policymakers and regulators, the report serves as a model for how climate-related financial disclosures can be localised, operationalised, and scaled across the banking sector.

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 beyond just about profits, highlighting our planetary impact. We are convinced our report will set a benchmark not only in the banking industry but also in the corporate sector of Bangladesh and inspire other institutions to follow suit.”

The report is available in the following link on the BRAC Bank website for all relevant stakeholders:
https://www.bracbank.com/download/BRAC-Bank-IFRS-S1-and-S2-Report-2024.pdf