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How Green Is the Green Banking Investment in Bangladesh?: A Paradox of Green Banking Practices
Abstract
The banking sector plays a critical role in economic development while its activities are also equally responsible for social and environmental damage such as violation of human rights, loss of biodiversity, and 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 threaten environmental sustainability and are prone to human rights violation. This chapter 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.
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