Data Analysis on Environmental Investment

1. Report:
Volunteer Disclosures and Environmental Accounting
BBA 19th
Batch
Dept. Of Accounting & Information System
University Of Dhaka
Submitted To:
Ahasan Uddin
Lecturer
Dept. Of A&IS
Submitted By:
GROUP EXID-2
Section –B
Date: 3 November 2014

2. 1
Abstract
The report entitling “Environmental Accounting and Reporting practices”. The report is written
on the basis of secondary data of four Bangladeshi banks. The data is collected from the annual
reprts-2013. Business cannot be run successfully ignoring the contribution of environment. Later
or sooner it will affect. (Bharucha & Erach, 2005) For this reason this report is made concerning
the investment done regarding environment. The thing as sunray is every bank has their own
green banking project. Every bank has been investing a certain portion of earning for the
betterment of the environment but this cannot be said a satisfactory implement. The actual
scenario is far poor from the expectation.
Group List:
Grpoup EXID-2
ID Name
146 Maliha Jahan
115 Ardra Lailac
110 Md.Naymur Rahman Shakil
116 Md. Shohan Molla
120 Afroza Mitu
141 Kaniz Fatema Nourin
Table of content:
Contents
Abstract.........................................................................................................................................................1
Group List: Grpoup EXID-2.............................................................................................................................1
Table of content:...........................................................................................................................................1

3. 2
Table of Voluntary Disclosure:.....................................................................................................................2
Objective:......................................................................................................................................................6
Statement of problems:................................................................................................................................6
Literature Review: ........................................................................................................................................7
A Brief Introduction Of Four Banks:............................................................................................................7
Uttara Bank Ltd: .......................................................................................................................................7
Premier Bank Ltd:.....................................................................................................................................8
Islami Bank Ltd: .......................................................................................................................................8
AB Bank Ltd:............................................................................................................................................8
Research Methodology: ................................................................................................................................9
Sample section:.........................................................................................................................................9
Selection of period:...................................................................................................................................9
Data sources:.............................................................................................................................................9
Techniques used for data analysis:............................................................................................................9
Calculating Reporting Index:.....................................................................................................................9
Findings and Analysis : Sentences, Words, Charts and Pictures:...............................................................10
Words of sentences: ....................................................................................................................................10
Table no.1.Showing the environmental disclosure location in words of sentences:...........................11
Statistical Analysis......................................................................................................................................11
Graphical representation of table no.2: .................................................................................................12
Graphical epresentation of table no.3: ....................................................................................................13
Broad Discussion:.......................................................................................................................................13
Policy Implication:......................................................................................................................................14
Limitation:...................................................................................................................................................14
Conclusion ..................................................................................................................................................15
References ..................................................................................................................................................15
Table of Voluntary Disclosure:

4. 3
SL
No.
Particulars Uttara
Bank
Ltd
Premei
r Bank
Ltd
Islami
Bank
Ltd
AB
Bank
Ltd
Operating & Financial Review
Nature of the business
1. Nature of the operation Y Y Y Y
2. Significant changes in operation (if any) N N N N
3. Major Products, Services and Customers Y Y Y Y
4. Number of markets it serves Y Y Y Y
Industry Outlook
5. Market & Competitive environment and its
competitive position
Y N Y Y
6. Regulatory environment N N Y Y
7. Technological Change N N Y Y
Management's Objectives and Strategies
8. Mission & Vision Y Y Y Y
9. A description of the company‟s business
model
N N Y N
Entity's most significant resources
10. Description of available resources N N Y Y
11. Management of resources N N Y N
Entity’s Principal Risks and Uncertainties
12. Description of risks and Director‟s policy to
manage those risks
Y Y Y N
13. Potential Opportunities of the entity Y N Y Y
Significant relationships with stakeholders
other than members
14. Description of distribution to shareholders Y Y Y Y
15. Description of capital raising and share
repurchase
N N Y N
Analysis of financial position of the entity
16. Both present and future factors affecting
financial position
Y Y Y Y
17. Highlight accounting policies set out in the
notes to F/S
Y Y Y Y
18. A description of the capital structure Y Y Y Y
19. the treasury policies and objectives Y N Y Y
20. Result of operations (Segment / Product
wise performance)
Y Y Y N
Cash Flows of the entity
21. Cash inflows and outflows during the year Y Y Y Y
22. Segmental cash flows Y Y Y N
23. Important factors affecting current and
future cash flows
N N N N
Liquidity of the entity

5. 4
24. Current and prospective liquidity Y Y Y Y
25. Major financial covenants N N N N
Key Performance Indicators (KPIs)
26. The definition and calculation method of
each KPI
Y N Y Y
27. Purpose and Source of underlying data Y N Y Y
Quantification or Commentary on Future
Targets
N N Y N
28. Previous year‟s KPI and the changes N N Y Y
29. Statement of compliance Y N Y Y
Total ( Number of compliance) 18 14 27 20
Particulars
Uttara
Bank Ltd
Premeir
Bank Ltd
Islami
Bank
Ltd
AB
Bank
Ltd
Social & Environmental Reporting
Environmental
Entity's policies regarding environment N Y Y Y
Assessment of key environmental risks and
company's response.
N N Y N
Governmental legislations on environmental
matters and entity's compliance.
N N N N
Significant initiatives taken by the company. N N Y N
Key environmental performance indicators. Y N Y Y
Environmental cost information. N N Y N
Training and awareness N N Y N
Monitoring and follow up N N Y N
Social (GRI guideline) on Sustainability
Reporting
Management Approach items with reference
to the Society Aspects
N N Y N
Goals and performance N N N N
Organizational policy to risk assessment and
mitigation of whole life cycle
N N Y N

6. 5
Organizational responsibility N N Y N
Training and awareness N N Y N
Monitoring and follow up N N Y N
;2
Total ( Number of compliance) 1 1 12 2
Human Capital Reporting
Quantitative
Personnel cost (broken down into
divisions/segments)
N Y Y N
Sales/net income per employee N Y Y N
Size and composition of workforce(including
sales/administrative staff ratio)
N N Y N
Rate of employee turnover N N N N
Rate of absenteeism N N N N
Qualitative
Structure of remuneration(including
bonus/incentives)
N N Y N
Employee retention/redundancy schemes N N N N
Job rotation and mobility schemes N N N N
Total ( Number of compliance) 1 3 4 2
Particulars Uttara Bank
Ltd
Premeir Bank
Ltd
Islami Bank
Ltd
AB Bank Ltd
Operating & Financial
Review
18 13 27 20
Social & Environmental
Reporting
1 1 12 2
Human Capital Reporting 1 3 4 2
Total 20 17 43 24

7. 6
Objective:
The whole objective of the study is to critically evaluate the EAR practices in the selected banks.
However, the specific objectives of this repot are:
1. To identify the need for environmental accounting and reporting practices.
and reporting in the selected firms. (Genn & Richard, Nov 1, 2014)
2. To examine the position of environmental information in the Annual Reports of the
sample organizations during the year-2010. (Fortner & M., Jan 1, 1994)
3. To suggest some measure as to overcome the problems thereby improving environment
accounting and reporting practices in the samples. (Kumar & Arnab, n.d.) (n.d.)
Statement of problems:
As the selected four banks have their own green banking project but they did not disclose the
investment amount fully. They have just shown the numerical in total. This total figure does not
give a whole disclosure. Bangladesh is very prone to global warming. Natural calamity prone
country which needs most investment regarding environment planning. (Basak, n.d.) Tree
plantation is a vital need for our country now days. Carbon di oxide is increasing in the air which
is very deteriorating for health. Tree lessens the carbon di oxide and increases the oxygen for us.
It is a balancing material. We need to focus on this more. But people are busy in cutting woods
and get them ready for trading. Most of the bank made the disclosure about environment is about
5 percent. The length of page discussing environmental issues and investment is very poor. Most
they are busy in showing off how much revenue they have made. Though having a disclosure
policy for this issue, they do not follow it. Government also is not taking any steps for this
aspect.

8. 7
Literature Review:
Environmental Management Accounting grew up from corporate environmental accounting and
branched off along the lines of management accounting. Environmental accounting, on the other
hand, continued to grow along the lines of financial accounting and dealt with the
institutionalizing environmental financial performance where environmental accounting was
used as a common term to advance the cause of environmental responsibility through accounting.
We can see the usage of the term environmental cost accounting for the purpose of identifying
and allocating environmental costs. The distinction between both the branches and to align them
along the hereditary lines (management and financial accounting) became more pronounced after
was formalized through guidance documents released. This document provided the ground for
delinking environmental conscious efforts through accounting along the lines of cost accounting
and its usage in decision making. It is well known that formal accounting standard to handle
ecological sensitive information still remains at voluntary disclosure level in spite of valiant
support from scholars and researchers to institutionalize standards of ecological accounting the
definition was crystallized and its separation from environmental accounting was complete .
A Brief Introduction Of Four Banks:
Uttara Bank Ltd:
Uttara Bank Limited (UBL) was established in 1965 with the head office located at Motijheel
in Dhaka. At the time of its establishment, it was named "Eastern Banking Corporation". After
the liberation war of Bangladesh, the bank was nationalized. In 1983, it became the first
privatized bank of Bangladesh. Uttara Bank Limited has 220 branches in Bangladesh. The
Bank's internal and external operational activities is operated by 12 (Twelve) Zones in different
regions of the country. It operates through 220 fully computerized and Online (Real Time
Online) branches, 39 AD (Authorised Dealer) Branches to ensure best possible and fastest
services to its valued clients. It is also affiliated with nearly 600 financial institutions worldwide.
The Board of Directors consists of 13 members. The bank is headed by the Managing Director
who is the Chief Executive Officer; Mr. Shaikh Abdul Aziz is currently holding this place. The

9. 8
Head Office is located at Bank‟s own 18-storied building at Motijheel, the commercial center of
the capital, Dhaka.
Premier Bank Ltd:
The Premier Bank Limited is incorporated in Bangladesh as banking company on June 10, 1999
under Companies Act.1994. Bangladesh Bank, the central bank of Bangladesh, issued banking
license on June 17, 1999 under Banking Companies Act.1991. The Head Office of The Premier
Bank Limited is located at Banani, one of the fast growing commercial and business areas of
Dhaka city
Islami Bank Ltd:
Islami Bank Bangladesh Ltd. (IBBL) is the pioneer of Islamic banking in Bangladesh. It
became incorporated on March 13, 1983 as a public limited company under the Companies Act
1913.[3]
It has 36.91% local and 63.09% foreign shareholders. With 285 branches and 11,465
staffs, IBBL is the largest private banking network in Bangladesh.[4]
When IBBL was established,
it was the first bank in south-east asia to provide banking service based on Shariah.[5]
The bank is
listed with both Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd
AB Bank Ltd:
AB Bank Limited is the pioneer in commercial banking under private ownership in Bangladesh.
It started functioning as Arab Bangladesh Bank Ltd. on 12 April, 1982. „To be the trendsetter
for innovative banking with excellence and perfection‟ was pronounced as the banks vision. Side
by side it spoke out about its mission, „To be the best performing bank in the country‟.
Since inception AB Bank Limited has spread over the country through 82 branches at all
economically potential locations. ABBL has established a foreign branch in Mumbai, India and a
subsidiary finance company in Hongkong.
AB Bank Limited provides all commercial banking services like Current and Savings accounts,
fund transfer, and utility bills receiving. In addition it presents a good number of deposit and
credit schemes for the clients

10. 9
Research Methodology:
Purpose of this study indicates the major concentration of this study. The core objective of this
study is to serve a reasonable answer about environmental issues the business sector concerns
and make investment for its betterment. To serve that core purpose, the main focus of this study
has been set out is the impact of projecting on environment, how many investment has been
done, how much good effect is seen in the environment for this investment. There have been
many studies conducted on different other aspects of environment accounting and reporting but
very little studies has focused on this aspect of fair accounting and reporting on environment so
far. So, the purpose of this study is to give a clear idea on this issue and create a awareness and a
strong motive for environment accounting and reporting in Bangladesh. This section contains
sample section procedures, section of period, (Barrow & J., 1999) sources of data, calculation of
environmental reporting index and techniques used for analysis.
Sample section:
Sample is a group of unit select from a large group (population) (Mccoll et al., n.d.).In this report we
selected four sample companies from banking sector which are listed both CSE & DSE.
SECTOR AVAILABLE NO. OF
LISTED COMPANIES
SELECTED NO.OF LISTED
COMPANY
Banking 30 4
Source: http://www.dsebd.org/by_industrylisting1.php
Selection of period:
We conduct this study in 2014 and to make this study more reliable we selected 4 annual reports from 4
banks that are our sample and we collected annual reports of 2013.
Data sources:
We conduct this study on the basis of secondary data and those are collected from annual report of 2013.
Techniques used for data analysis:
For analysing data we use average, standard deviation, coefficient of variance and correlation techniques.
Calculating Reporting Index:
For calculating reporting index, we have to determine disclosure volume through both weighted
disclosure index and un-weighted disclosure index (Wallance, 1994). Researchers such as
Wallance(1994). According to this procedure, an item scores „1‟if disclosed and‟0‟ if not
disclosed. This procedure used in the corporate annual reports and calculation can make little or
no difference to the findings. past experience shows that the use of weighted and un-weighted

11. 10
scores for the items disclosed in the corporate annual reports and calculation can make or little
difference to the findings. (Tayib, 1998). The un-weighted disclosure method measures the total
disclosure score of a selected company (cook, 1992).
TD=∑
Where, d=1 if item di is disclosed.
0=if item is not disclosed
n=number of items
The main theme is that all items of the disclosed information are considered equally to average
users (Lehmann & Joseph, n.d.)
Findings and Analysis : Sentences, Words, Charts and Pictures:
Words of sentences:
Here we count all words and sentences that represents environments disclosures of our sampling
banks. Table no. 1 shows the environmental disclosure location in words and sentences.

12. 11
Table no.1.Showing the environmental disclosure location in words of sentences:
Location in annual
report
Total
word(AB
bank)
Total
sentences
(AB bank)
Total
word(
Premier
Bank)
Total
sentences(
Premier
Bank)
Total
word
(Islami
bank)
Total
sentences(
Islami
bank)
Total
word
(uttara
bank)
Total
sentences
(uttara
bank)
Chairman‟s statement 0 0 0 0 104 4 0 0
Managing directors
statement
33 3 0 0 57 3 65 3
BODs statement 0 0 124 5 64 3 0 0
Income statement 0 0 0 0 0 0 0 0
Balance sheet 0 0 0 0 0 0 0 0
Corporate philosophy
report
0 0 0 0 0 0 0 0
CSR report 26 1 0 0 77 7 63 3
Other 13 2 9 1 642 69 11 1
Total 72 6 133 6 944 86 139 7
Statistical Analysis
Here we use four banks which is our samples. From these samples Islami bank ltd maximum words that
is 944 and sentences that is 86 and other three banks use less than 250 words and less than 18 sentences to
disclosure their environment factors.

13. 12
Table No 02: Showing the ranges words and sentences used for environmental disclosure
Range of
Word used
No. of
Company
% in the
Sample
Range of Sentences
Used
No. of
Company
% in the
Sample
0-250 3 75.00% 0-18 3 75.00%
250-500 0 0.00% 18-36 0 0.00%
500-750 0 0.00% 36-54 0 0.00%
750-1000 1 25.00% 54-90 1 25.00%
total 4 100.00% Total 4 100.00%
Graphical representation of table no.2:
0 1 2 3 4 5 6 7 8 9
No. of Company
% in the Sample
Range of Sentences Used
No. of Company
% in the Sample
word and sentence used
0-250 250-500 500-750 750-1000 total

14. 13
Table No 2. Shows that the mean, Std. Deviation .Minimum and Maximum use of words and sentences in
environmental disclosure. Here
Graphical epresentation of table no.3:
Broad Discussion:
For these study four banks has been selected. Every bank has green banking project which is a
part of global initiate to save the environment form different hazards. As having corporate social
responsibility which leads them to contribute generously to the development of green banking.
As a prudential and time befitting initiate Bank has incorporated a number of green banking
projects in its business operation which are highly beneficial for the environment and the health
of the society as well. The policies with regard to environmental management are being observed
in our lending practices. (Theodore et al., n.d.)For which the banks are always against financing
the trade business having potentially harmful impacts on environment. Their lending policies are
supportive and nourishing to environment.
0
100
200
300
400
500
600
700
800
900
1000
Mean S.D Minimum Maximum
Word Sentence
Word Sentence
Mean 322 26.25
S.D 360.06 34.5
Minimum 72 6
Maximum 944 86

15. 14
Banks Name Investment in Total (Tk million)
Uttara Bank Limited 29.8
Premier bank ltd 0
Islami bank ltd 49840.91
AB Bank Ltd 0
Policy Implication:
Environmental policy refers to the commitment of an organization to the laws, regulations, and other policy
mechanisms concerning environmental issues and sustainability. This policy can be deliberately taken to direct
and oversee human activities and thereby prevent harmful effects on the biophysical environment and natural
resources, as well as to make sure that changes in the environment do not have harmful effects on human
(McCormick, 2001).
Banks use those environmental polices so that the activities done by the banks causes no harm to the
environment. They invest a large amount for keeping the environment sound and healthy by creating
consciousness among the people.
Government, regulatory bodies etc. are established for making environment policy to guideline the people
and organizations how to keep healthy , fresh environment and by analysing those policies companies set
their environmental rules and regulations. Here our sample banks that are AB bank, Premier bank, Islami
bank and Uttora bank use different types of policies such as “green banking” to protect the environment.
Through reading this report owner ,managers and employees of the companies are motivated to
implement environmental policy to protect our environment. (Sheldon & Yoxon, n.d.)
Limitation:
This report provides results about the environmental disclosure practised by the banking sector in
Bangladesh. Here we use four sample banks for interpreting the result about environmental disclosures.
When we prepare this article there are some limitation which sometimes cannot be ignored. (Hitchens et
al., n.d.)
The limitations regarding the report are given below:
 Using secondary data only.
 Using only 2013 years data.
 Using sample banks which sometimes interpret error.
 All of the sample bank are not provide the full information about environment policies or the
amount they invested for the well- being of environment.
 They don‟t provide any information how they implement the activities regarding environment.

16. 15
Conclusion
This report only focusing on the environmental disclosures made by banking sector through using
sample banks ( AB bank ltd. Premier bank ltd., Islami bank ltd and uttora bank ltd). Out of 30 banks
we use 4 banks were only one bank that is islmi bank ltd gives enough disclosures about but other
three banks don‟t give sufficient information about environment discloures. There are another
scopes of conducting other studies in the same direction in the following issues, (Measham &
Lockie, n.d.) Importance of environmental disclosure in annual report, Prospects and
challenges of EAR in Bangladesh, Role of Environmental Accounting and Reporting in
creating environmental awareness among the corporate stake holders in Bangladesh etc. by
reading this disclosures hopefully owners, managers and the persons making annual report
will be more conscious to provide information about environment disclosers.
References
Barrow & J., C., 1999. Environmental Management: Principles and Practice.
Basak, A., n.d. Environmental Studies.
Bharucha & Erach, 2005. Textbook of Environmental Studies for Undergraduate Courses.
cook, 1992.
Fortner & M., D., Jan 1, 1994. Environmental Studies: An Annotated Bibliography. Scarecrow Press.
Genn & Richard, Nov 1, 2014. AQA Environmental Studies AS/A2. Nelson Thornes Limited.
Hitchens, D.M.W.N., Clausen, J. & Fichte, K., n.d. International Environmental Management Benchmarks:
Best Practice Experiences.
Kumar, D. & Arnab, D., n.d. Basics of Environmental Studies.
Lehmann, J. & Joseph, S., n.d. Biochar for Environmental Management: Science and Technolog.
Mccoll, easton, v.j. & h., j., n.d. Statistics glossary. 111th ed.
McCormick, J., 2001. Environmental Policy in the European Union.
Measham, T. & Lockie, S., n.d. Risk and Social Theory in Environmental Management.
Sheldon, C. & Yoxon, M., n.d. Environmental Management Systems: A Step-by-Step Guide to
Implementation.

17. 16
Tayib, C.a., 1998.
Theodore, L., Dupont, R.R. & Baxte, T.E., n.d. Environmental Management: Problems and Solutions.
Wallance, 1994.