Status of Green Accounting in Bangladesh

Abstract

The study explores the current status of Green Accounting and Reporting (GAR) practices in Bangladesh's banking sector, focusing on corporate sustainability and environmental matters. The research also aims to measure the extent of GAR practices of all thirty commercial banks listed in the stock exchanges based on GRI Standards, focusing broadly on green issues from an environmental perspective. Specifically, the research is based on three objectives to enhance the core objective by simultaneously addressing three research questions. This study used content analysis as the main method to answer the first and second research questions. Further, the survey method, mainly a questionnaire, was employed to address the third and final research question. The first research objective explores the overall nature of GAR practices in Bangladesh's banking industry, analyzing the content of specific areas of GAR information in the annual reports of 30 selected banks listed in the stock exchanges. The results indicate a significant increase in the adoption of GAR practices in recent years. The second objective measures the extent of GAR practices by Bangladeshi banks, explicitly focusing on adherence to GRI Standards regarding the environment. The study finds that almost all sampled banks provided GAR information but needed to be fully compliant with the GRI Standards. The third and final research objective identifies the challenges Bangladeshi banks currently face in adopting GAR practices. A questionnaire survey was conducted with 20 selected staff members of the sustainability department of the banks to identify the challenges in practice. Key challenges hindering the adoption of GAR in the banking sector include undeveloped green infrastructure, lack of awareness about green technologies, unskilled workforce, lack of consciousness about green accounts, low adoption of green initiatives, inadequate in-house green activities, lack of coordination with different stakeholders, and insufficient information about green issues. The research results promote sustainability and environmental responsibility in the financial industry, helping banks attain ongoing improvement and nurture connections with stakeholders. This allows banks to adequately explain sustainable growth's positive and negative implications, improving transparency and accountability. The xi study offers policy recommendations to encourage implementing GAR practices in Bangladesh's banking sector, aiming to inspire authorities to develop sustainable initiatives and reporting practices.