Sustainability: The New Notion of Bangladesh’s Corporate World

Within the space of just a few decades, the term "sustainability" has experienced an extraordinary rise to fame, moving from the fringes to the mainstream as it has become one of the defining features of 21st-century reality. Today, the term sustainability encompasses a whole paradigm shift to our understanding of the world and our place within it, which is set to have a fundamental and pervasive effect on how we manage and design systems in this century, as it will affect all aspects of our economy.  Although sustainable business is not a new concept in Bangladesh, we are lagging in incorporating sustainability into our lives, even compared to our neighbouring countries. As per the Sustainable Development Report (SDR 2025), Bangladesh was positioned 114th among 167 countries, while India, Sri Lanka, and Pakistan ranked 99th, 93rd, and 140th, respectively.

The idea of reaching net zero is a part of corporate sustainability that involves a company balancing its greenhouse gas emissions with the quantity it extracts from the atmosphere, resulting in total emissions equating to zero. The Net-Zero Banking Alliance (NZBA), convened by the UN and led by banks, unites a worldwide coalition of banks that are voluntarily dedicated to independently aligning their financing practices with the pathways necessary to achieve net zero emissions by 2050, in accordance with limiting global warming to 1.5°C. Nearly all banks in Bangladesh that were featured in the list of the country's top sustainable banks, such as Dutch-Bangla Bank PLC, BRAC Bank PLC, and City Bank, are members of the NZBA group.

On the other hand, renewable energy refers to energy derived from natural sources that are continuously replenished, and companies around the globe are progressively shifting towards renewable energy sources, motivated by a blend of economic, environmental, and social influences, which indeed support the concept of corporate sustainability. In 2024, renewable energy sources accounted for approximately 2% of the overall electricity generation in Bangladesh. In contrast, countries such as Thailand and Pakistan had figures of 15% and 6.8%, respectively. Solar accounts for the majority of the existing renewable energy capacity, totalling 968 MW. Bangladesh’s production of electricity from hydropower is under 1%, which is significantly low compared to the global average of 13%. However, recently, there have been some encouraging developments, particularly in the area of renewable energy spending, which falls under green financing. Last year, banks allocated 229.59 billion BDT, reflecting an 81.6% rise compared to their expenditures in 2022.

Sustainability refers to fulfilling the needs of the present without compromising the future. In the context of business, this concept is known as corporate sustainability. Corporate sustainability is the integral approach to business aimed at enhancing competitive positioning and profitability through the sustained creation of shared value, co-creation practices with stakeholders, and the integration of ESG (Environmental, Social, and Governance) factors in decision-making. It goes beyond environmental concerns to include economic, cultural, ethical, and social sustainability. Bangladesh Bank first introduced this concept in 2011. Subsequently, in 2013, policy guidelines for Green Banking were released for all banks and financial companies operating within the country. Yet the result we received is on the Green Banking initiative is far from adequate. During the preparation of the report, I interviewed two individuals: one who works at a local bank and the other at an international bank. Both recognized that the bank's involvement in sustainable or green banking is considerably lacking. As per their statement, Bangladesh Bank provides incentives to various industries, such as export and agriculture, which aid in the growth of these sectors. However, there is a notable absence of adequate incentives for green banking, which fails to encourage entrepreneurs to pursue sustainable business practices.

Overall, achieving corporate sustainability successfully involves not only environmental practices and pledges to reduce carbon emissions but also ensuring that human rights are upheld at every tier of the supply chain. It thrives because it links business expansion with accountability towards individuals and the environment. When organizations opt to function in environmentally friendly and ethical manners—such as minimizing pollution, conserving energy, or ensuring fair treatment of employees—they not only safeguard the ecosystem but also gain the confidence of customers, staff, and investors.


Zaina Afreen Shirazi is an A
Level student in St. Joseph 
International School, Dhaka.