Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial literacy
• Community development
• Integrating environmental and social risk factors in investment and lending decisions
• Resource optimization
• Waste management
• Carbon footprint management
• Employee safety and security
• Competency building
• Healthy and non-discriminatory workplace
• Human Rights principles
• Leadership development and succession planning
• Employee diversity
• ESG policies in the supply chain
• Economic value creation and contribution to society
• Shareholder engagement programs
• Capital allocation
• Governance and risk management
• Customer experience
• Innovation
• Quality assurance
• Financial access for marginalized sections
• Regulatory compliance

Environmental Achievements

• 10.45% reduction in carbon footprint intensity (per full-time employee)
• 2 MW installed solar energy capacity
• 9,542 MWh energy savings
• 4.38% reduction in overall office-paper usage
• 25 tonnes of dry waste recycled
• Launched India’s first certified ‘Green Bonds’ of US$ 500 million

Social Achievements

• 4.2 million users registered for Axis Mobile Banking App
• 4.9 million users registered for Internet Banking
• 0.9 million livelihoods created cumulatively through Axis Bank Foundation
• 1.08 million overall beneficiaries of Axis Bank Foundation initiatives
• 15,240 financial literacy camps conducted, touching nearly 2,18,041 people
• 21% of women in workforce
• 44,872 employees certified through 'Banking on Compliance' program

Governance Achievements

• 20% women representation in the Board of Directors
• Banking on Compliance training initiative introduced for compliance and governance standards
• Overall Capital Adequacy Ratio (CAR) of 14.95%

Climate Goals & Targets

Environmental Challenges

• Asset quality situation concentrated in a few sectors
• High liquidity and very low corporate demand
• Slowdown in capex activity
• Subdued corporate credit demand

Mitigation Strategies

• Strong operating profit engine
• Sustainable Lending Policy and Procedures implemented
• Green Bonds issued to finance green projects
• Investments in renewable energy and energy efficiency projects

Supply Chain Management

Responsible Procurement

• Vendor Management Framework

Climate-Related Risks & Opportunities

Opportunities

• Financing of renewable energy projects

Reporting Standards

Frameworks Used: GRI G4 core, NVG-SEE, UNGC Principles, UN Sustainable Development Goals (SDGs)

Third-party Assurance: KPMG (Registered), India

Sustainable Products & Innovation

• Green Bonds
• Axis Active (fitness solution)

Awards & Recognition

• CII – ITC Sustainability Awards 2016 – Excellence in Corporate Social Responsibility
• Business Standard Corporate Social Responsibility Awards 2016 – Socially Aware Corporate of the Year
• The Banker Awards 2016 - Bank of the Year in India
• Asiamoney Best Domestic Bank Awards 2016 - Best Domestic Bank in India
• Loyalty Awards 2017 - Best Rewards Programme
• Loyalty Awards 2017 - Best Use of Partnership in a Loyalty Programme

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Sustainable Lending
• Environmental Stewardship
• Community Development
• Employee Well-being
• Governance

Environmental Achievements

• Achieved 1.6% year-on-year reduction in Scope 1 & 2 emissions per employee, to 2.39 tCO2e
• Saved over 9,100 tCO2e of emissions through internal resource efficiency initiatives
• Saved 1.4 million tCO2e from the Bank's green bond funded projects
• Installed 7.05 MW of solar power generation capacity at 248 locations
• Reduced paper consumption through digital initiatives (e-statements, e-welcome kits)

Social Achievements

• Axis Sahayog microfinance program served 1.7 million women borrowers in 18 states and 1 Union Territory
• Launched Axis Sahayata for disaster relief, providing direct relief to over 2,600 families in Kerala floods and 700 households affected by Cyclone Titli
• Project Akshar financial literacy platform reached over 5 lakh participants
• Axis DilSe initiative in Ladakh transformed over 100 schools, covering over 5,000 students
• 35 differently-abled candidates hired under 'Access' initiative

Governance Achievements

• Strengthened compliance culture across the organization
• Implemented robust risk management framework
• Adopted AI & Machine Learning for fraud prevention and detection
• Enhanced cyber security capabilities

Climate Goals & Targets

Environmental Challenges

• Fraud and money laundering in the increasingly complex digital banking environment
• Climate change risks (financial, regulatory, reputational, and physical)
• Ensuring environmental and social responsibility in lending activities

Mitigation Strategies

• Comprehensive organizational process for securing banking systems and working with stakeholders
• Sustainable Lending Policy and Procedures (SLPP) integrating environmental and social risk assessment into credit appraisal
• Investment in technology and digitalization for operational efficiency and customer convenience
• Internal resource efficiency initiatives (energy conservation, waste management)

Supply Chain Management

Responsible Procurement

• Vendor Management Framework (VMF)
• Supplier Code of Conduct
• Procurement of PEFC certified A4 printing paper

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, floods

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services
• Investment in renewable energy sector

Reporting Standards

Frameworks Used: GRI Standards – Comprehensive option, Integrated Reporting Framework

Third-party Assurance: DNV GL Business Assurance India Private Limited

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 13: Climate Action

Various initiatives aligned with these goals are described throughout the report.

Sustainable Products & Innovation

• Asha Home Loans
• Shubh Aarambh

Awards & Recognition

• Excellence in Corporate Social Responsibility at CII-ITC Sustainability Awards
• Included in FTSE4Good Emerging Index for 2018
• Best Mobile App for One Raipur at BW Businessworld 6th Smart Cities Conclave & Mega Awards

Environmental Metrics

ESG Focus Areas

• Ethics, Transparency and Accountability
• Sustainable Products and Services
• Employee Well-being
• Stakeholder Engagement
• Human Rights
• Environmental Protection
• Inclusive Growth
• Customer Engagement

Environmental Achievements

• 7.05 MW of rooftop solar capacity across 248 locations
• Procured ~1MW of solar power under PPA for its Data Centre in Bangalore
• Initiatives focusing on improved lighting, efficient water management and waste management in large offices
• Digitization efforts reducing resource consumption

Social Achievements

• Axis Sahyog microfinance program provided inclusive financial solutions to over 5 million families
• Over 2.1 million Mudra accounts
• Active support for national schemes like PMJDY, PMSBY, PMJJBY, and APY
• Various CSR initiatives focusing on sustainable livelihoods, education, and environmental sustainability

Governance Achievements

• Code of Conduct and Ethics applicable to all employees
• Code of Conduct and Conflict of Interest Norms for Board of Directors
• Whistleblower policy
• Equal Employment Opportunity Policy

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct with clauses on human rights and environmental aspects
• Energy efficiency standards considered during equipment procurement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Lending to renewable energy, waste management, and mass rapid transportation sectors

Reporting Standards

Frameworks Used: GRI, IIRC

Certifications: Null

Third-party Assurance: Externally assured

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved Platinum certification for Axis House Mumbai under IGBC Green Existing Building Rating System
• Implemented solar energy projects across branches and offices, saving ~3,066 tCO2e of carbon emissions
• Procured solar power for Data Centre in Bengaluru, saving ~3,141 tCO2e of carbon emissions
• Implemented CEMS in 600 branches, saving ~38.86 lakhs units of electricity and ~3,070.56 tCO2e of emissions
• Replaced conventional lights with LEDs in 1,789 branches, saving ~5,340 tCO2e of carbon emissions

Social Achievements

• Reached 1.37 million rural women participants in Financial Literacy and Health Awareness Programmes
• Supported over 1 million households through ABF’s Mission 2 Million commitment
• Axis Bank is now a Great Place to Work-Certified™ organisation
• Launched #ComeAsYouAre Diversity Charter
• Overall diversity ratio of 24.6%
• Increased share of women borrowers to 15.86%

Governance Achievements

• Became the first Indian bank to establish a standalone ESG Committee of the Board
• Strengthened ESG Policy for Lending
• Adopted the Sustainable Financing Framework
• Improved performance on global ESG assessment platforms (FTSE4Good, Dow Jones Sustainability Indices, MSCI ESG Ratings, CDP)

Climate Goals & Targets

Environmental Challenges

• Russia-Ukraine crisis impacting commodity prices and energy transition
• Heat wave in India causing energy crisis and increased coal-fired power production
• Fraudulent transactions due to increased digital channels

Mitigation Strategies

• Closely monitoring developments and adapting ESG commitments accordingly
• Strengthening fraud detection and mitigation framework
• Investing in cybersecurity and data security

Supply Chain Management

Responsible Procurement

• Supplier sustainability assessments

Climate-Related Risks & Opportunities

Physical Risks

• Erratic rainfall affecting agriculture

Transition Risks

• Regulatory changes, market shifts related to climate action

Opportunities

• Financing of renewable energy and green projects

Reporting Standards

Frameworks Used: Integrated Reporting (IR) framework of the IFRS Foundation, GRI Standards

Certifications: IGBC Green Existing Building Rating System (Platinum)

Third-party Assurance: Ernst & Young Associates LLP (EY)

Sustainable Products & Innovation

• Asha Home Loans
• Green and social lending products

Awards & Recognition

• National Winner in Leadership in Social Impact and Leadership in Transparency at ESG India Leadership Awards
• FTSE4Good Emerging Index
• MSCI ESG Rating A
• CDP score B-

Environmental Metrics

ESG Focus Areas

• Inclusive and equitable economy
• Thriving communities
• Healthier planet

Environmental Achievements

• ~12,152 MT of GHG emissions avoided through internal energy efficiency measures and green energy consumption
• ~1.1 million sheets of paper avoided per branch under Branch of the Future initiative
• 0.83 million saplings planted under target Mission 2 Million by 2027
• 2 MW in-house solar capacity

Social Achievements

• 2.2 million Borrowers who are women under Axis Sahyog retail microfinance program
• ~1.15 million women Participants under Bank’s Financial Literacy Program
• 1.24 million households Reach of Axis Bank Foundation’s Sustainable Livelihoods program
• 25.7% Women representation in the workforce
• Established the Axis Bank Centre for Mathematics and Computing at the Indian Institute of Science, Bengaluru

Governance Achievements

• Established the ESG Committee of the Board (Aug ’21)
• Improved BitSight rating to 800 from 770 in the previous year

Climate Goals & Targets

Environmental Challenges

• Scaling down exposure to carbon-intensive sectors, including Coal and Thermal Power
• Accurately assessing and responding to emerging climate-related risks
• Data security, risk control measures, and demonstrating a strong ethics and compliance culture

Mitigation Strategies

• Glide path till 2030 created for exposure to carbon-intensive sectors
• Pilots around climate-related stress testing and scenario analysis
• Investing in new-age digital and technological infrastructure, strengthening data protection capabilities, and prioritizing information and data security
• Launched an ESG Rating Model that is being piloted with top wholesale banking clients

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters

Transition Risks

• Emerging regulations
• Technology and innovation
• Changing consumer or investor sentiment

Opportunities

• Expansion in demand for lower-emissions goods and services
• Resource and energy efficiency in business operations
• Diversification of financial portfolio and growth of green portfolio

Reporting Standards

Frameworks Used: Integrated Reporting (IR) framework of the IFRS Foundation, Global Reporting Initiative’s (GRI) standards

Certifications: ISO 27001, ISO27017

Third-party Assurance: TUV SUD South Asia Private Limited

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13

Activities are aligned to 12 SDGs

Sustainable Products & Innovation

• Asha home loans
• EV loans

Awards & Recognition

• Among Top-3 Most Sustainable Companies in Banking and NBFC category in BW Inida’s Most Sustainable Companies 2023
• A Rated ‘A’ in MSCI ESG Rating 2022
• 6th Consecutive year of inclusion in the FTSE4Good Emerging Index series
• Among Top-10 Constituents of S&P BSE 100 ESG Index
• Among Top-10 Constituents of MSCI ESG Leaders Index

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implementation of Solar energy projects across select Axis Bank branches and offices, aggregating ~ 2 MW which helped save ~2590 tCO2e of carbon emissions in fiscal 2023.
• Axis Bank has started procuring solar power of ~1 MW (3.50 Lakhs units p.a.) under Power Purchase Agreement (PPA) Model from fiscal 2020 for Bank’s Data Centre in Bengaluru.
• In fiscal 2023, the implementation of CEMS in 600 branches helped save 40.02 lac units of electricity, which resulted in saving ~3250 tCO2e of carbon emissions.
• Existing conventional light fittings replaced with LED bulbs in ~908 branches PAN India which saved around 31.91 lacs units of electricity and saved around 2520 tCO2e of carbon emissions.

Social Achievements

• The Bank’s signature DE&I awareness training program “Pause for Bias” helps employees rise beyond their inherent unconscious Biases.
• The Bank remains committed to being an organisation with strong respect for human rights, inclusive environment & safe work conditions and ethically sound business practices for employees.
• The Bank has employed many person with disabilities under its ACCESS program.

Governance Achievements

• Axis Bank has formed an ESG Committee of the Board which is responsible for decision making on sustainability & ESG related issues.

Climate Goals & Targets

Environmental Challenges

• Non-compliance with certain directions issued by RBI on ‘Loans and Advances – Statutory and Other Restrictions’, ‘Reserve Bank of India (Financial Services provided by Banks) Directions, 2016’, ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016’, and ‘Levy of penal charges on non-maintenance of minimum balances in savings bank accounts’.
• Axis Bank (a Corporate Agent for distribution of Mutual Funds) has received a letter from IRDAI (the Authority) dated Oct 13, 2022 levying a penalty of ` 2 crs on the charges for not complying with the directions of the Authority in the transaction of acquisition of shares of Max Life Insurance Company Ltd (MLIC) and for making undue profits/ gains from purchase and sale of equity shares of MLIC.

Mitigation Strategies

• Bank has paid the penalty to RBI.
• Axis Bank has made a representation that each of these transactions have been at FMV either backed by a Chartered Accountants certificate or is based on valuation as envisaged under Rule 11 UA of the Income Tax Rules, 1962.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 27001, PCI DSS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Sustainable Finance
• Community Development

Environmental Achievements

• Issued inaugural Green Bond of USD 500 Mn in 2016
• Issued USD 600 Mn sustainable AT1 bonds in 2021
• Achieved ₹30,409 Crores of incremental lending in renewable energy sectors as of March 31, 2024
• Total wholesale lending portfolio in ‘green’ sectors stood at ₹18,907 crores as of March 31, 2024
• 1.3 million trees planted as of March 2024 (towards a goal of 2 million by 2027)
• 282 metric tonnes of dry waste collected and sent for recycling from select large offices
• 29 metric tonnes of e-waste collected and disposed through Government authorised vendor from large offices and branches pan-India

Social Achievements

• Axis Sahyog microfinance program reached 2.5 million women participants in FY 2024
• Disbursed ₹6,744 Crore in Axis Sahyog in FY 2024
• ASHA Home Loans program reached 1,11,473 customers with 17.70% women borrowers as of March 31, 2024
• Incremental disbursement of ₹10,510 crore under ASHA Home Loans in FY 2024
• #HouseWorkIsWork hiring campaign made 22 hires in FY 2024
• Axis Bank Scholarship Programs supported 51 scholars at Ashoka and Plaksha Universities
• 44 women scholars supported in FY 2024 pursuing STEM degrees

Governance Achievements

• Established a standalone ESG Committee of the Board in FY 2022 (first in Indian banking sector)
• ESG risk included in the Bank’s ICAAP assessment from March 2020
• Implemented ESG Policy for Lending since 2015, adopting IFC Performance standards

Climate Goals & Targets

Environmental Challenges

• Climate-related regulations impacting business decisions and customer activities
• Acute physical risks impacting assets, supply chains, employees, and society
• Macro risks associated with the global low-carbon economic transition

Mitigation Strategies

• ESG Policy for Lending integrates environmental and social risk assessment into credit appraisal
• Business Continuity Management framework mitigates physical risks
• Multi-year project to scale up integration of climate and ESG risks at the enterprise level

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Acute physical risks impacting assets, supply chains, employees, and society

Transition Risks

• Climate-related regulations impacting business decisions and customer activities
• Macro risks associated with the global low-carbon economic transition

Opportunities

• Expansion in demand for lower-emissions goods and services
• Resource and energy efficiency in business operations
• Diversification of financial portfolio and growth of green portfolio

Reporting Standards

Frameworks Used: GRI Standards 2021, IIRC Integrated Reporting Framework, UN Sustainable Development Goals (SDGs), Greenhouse Gas Protocol, TCFD

Third-party Assurance: DNV Business Assurance India Private Limited

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 13 (Climate Action)

Various programs and initiatives aligned with these goals are described in the report.