How Green Is the Green Banking Investment in Bangladesh?: A Paradox of Green Banking Practices

How Green Is the Green Banking Investment in Bangladesh?: A Paradox of Green Banking Practices

Md Hafij Ullah (Coventry University, UK) and Parvez Mia (Macquarie University, Australia)
Copyright: © 2020 |Pages: 11
DOI: 10.4018/978-1-7998-0062-0.ch018

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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Shipbreaking Industries In Bangladesh

Shipbreaking industry creates enormous hazards like environmental pollution, including air and water pollution and fatal accidents to the shipbreaking workers. Shipbreaking is recognized as the 'most dangerous job' in the world (Karimjee, 2013). There are no human rights, occupational safety measures, and emergency supports to workers. More than 70% of the ships are dismantled in Bangladesh, India, and Pakistan. Highest ships (in terms of Tonnage) are dismantled in the Shipbreaking industries in Bangladesh. Around 1000-2000 workers died in the last 30 years in the shipbreaking industry in Bangladesh (Hossain et al., 2016). Shipbreaking also violates child labour regulations as 20% of workers are under 15 years of age.

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