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Draft Environmental Risk Management (ERM) Guidelines for Banks and Financial Institutions

Bangladesh Current 2015

The core objective of the ESRM Guideline is to make banks and FIs realize to integrate Environment & Social (E&S) risks and incorporate appropriate risk mitigation measures in overall credit management to be able for expanding the credit/investment portfolio rather than avoid investing in high E&S risks. Guidelines expand the scope of social assessments and introduces a robust and quantitative scoring methodology for better estimation of environmental and social (E&S) risks along with risk-based screening criteria to evaluate a proposed transaction.

Issuer name

Bangladesh Bank (central bank)

More information

This update to ERM Guidelines, now titled as ESRM Guidelines, has been developed to address the first three recommendations (the database of external consultants and environmental insurance will be considered later), the feedback obtained from banks and FIs after implementation of ERM Guidelines and outcomes of Environmental & Social Risk Management (ESRM) Baseline Survey for Bangladesh Financial Sector conducted by IFC.

Reporting resources


Organizations covered by the instrument

All Companies

Target organization notes

• Insurance undertakings

Industry scope

All/none specified

ESG coverage - E (Environment)


ESG coverage- Eco (Economic & General)

Trade and Investment






Asia Pacific

Date of publication


Issuer type

Financial Market Regulators

Reporting requirements

Guidelines and standards for non-financial reporting

Mandatory or voluntary


The geographical scope


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