In a rising trend of embracing sustainability, one more Bangladeshi listed firm has joined the Bloomberg Environmental, Social, and Governance (ESG) club, increasing the tally to 11 this year.
The latest Bloomberg data revealed that the list, based on three criteria -- environment, social responsibility, and good governance -- had 10 companies last year, while this year it has increased to 11.
However, in 2023, only 7 companies were on the list.
The list is topped by Brac Bank, which received an average score of 3.80. Next is IDLC Finance (3.51).
City Bank (2.64) got third position, which was included for the first time. Mercantile Bank has also made a new place in the list. With a 0.97 score, it got the 11th position.
LafargeHolcim Bangladesh (1.91) is up from the previous 6th to 4th position. In 2023, this company got 7th on the list.
This year, BSRM (1.41) made a big leap from 10th to 7th position.
But with a score of 3.51, IDLC Finance lost its first position and was second this time.
However, some companies have slipped from their previous positions.
Grameenphone was in 3rd place last year, but this time it has dropped to 5th place.
British American Tobacco Bangladesh has dropped from 4th to 6th place.
Walton was in 7th place last year, but this time it is in 10th place.
On the other hand, MJL Bangladesh and Square Pharma (1.05) both retained their 8th and 9th places respectively this year as well.
Marico Bangladesh, which was on the previous list, could not retain its place this year.
Bloomberg’s latest data revealed that these companies were making measurable strides towards responsible business practices with a long-term commitment to sustainability.
Corporate Bangladesh has been slow to embrace sustainability compared to its peers; however, the growing compliance among exporters has gradually popularized these practices among an increasing number of firms, said industry experts.
Good for FDI
Analysts believe that Bloomberg's ESG Rating is an important indicator for foreign investors.
As a result, this progress of Bangladesh will play a positive role in increasing confidence in the country's capital market.
Brac Bank managing director & CEO (current charge) Tareq Refat Ullah Khan said: “These recognitions from Bloomberg affirm our deep-rooted commitment to responsible banking, transparency, and impact. At Brac Bank, we believe that ESG is not just about communities, protecting the planet, or uplifting communities; it is also about building a future-ready institution that investors, regulators, coworkers, and customers can trust.”
“We remain committed to scaling up green and inclusive financing so that our progress contributes meaningfully to the nation’s sustainable development goals,” he added.
LafargeHolcim Bangladesh PLC CEO Mohammad Iqbal Chowdhury said: “Being a part of the Holcim Group, the top construction materials company in the world, we place a high value on good governance and sustainable development. At all organizational levels, we consistently maintain the highest standards of integrity, compliance, and ethics.”
“This recognition by an international organization like Bloomberg is clear proof of our commitment and spirit. I express my sincere gratitude to our employees, board of directors, shareholders, and stakeholders for their cooperation in this achievement,” he explained.
Bloomberg is a world-renowned American company that primarily provides financial information, news, and analysis.
Founded in 1981, the company delivers reliable economic and market-based information to investors, policymakers, and researchers around the world through Bloomberg terminals, television, radio, and digital platforms.
The company has been publishing ESG ratings for companies in different countries around the world since 2020.
The first ESG rating for companies in Bangladesh was published in 2023.