Eastern Bank partners with IFC to enhance climate risk management

Eastern Bank PLC (EBL) has entered into a strategic partnership agreement with the International Finance Corporation (IFC) to strengthen its climate risk management capabilities.

EBL has become the first commercial bank within Bangladesh's banking sector to collaborate with the IFC on the development of robust climate risk management frameworks.

This initiative seeks to augment EBL's capacity to evaluate and manage both physical and transition risks associated with climate change.

Supported by Denmark under the Bangladesh Climate Advisory Partnership, the project will align EBL's risk management practices with international standards, thereby fortifying its resilience to climate-related financial impacts.

Ali Reza Iftekhar, managing director and CEO of EBL, and Mehdi Cherkaoui, regional manager of upstream and advisory services, financial institutions group for South Asia at IFC, signed the agreement at a recent ceremony in Dhaka, according to a press release.

Commenting on the partnership, Iftekhar remarked, "We are proud to be the first bank in Bangladesh to incorporate a dedicated climate risk management framework in partnership with the IFC."

"This initiative will reinforce our institutional resilience and underscore our enduring commitment to sustainability and responsible banking."

"It exemplifies EBL's proactive stance in addressing climate-related financial risks and our dedication to supporting Bangladesh's transition to a low-carbon economy," he added.

Senior officials from both organisations were also present.