Climate Change Data

UGRO Capital Limited

Climate Impact & Sustainability Data (2023-04 to 2024-03, 2024)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Financial Inclusion
  • Climate Change
  • Women's Entrepreneurship
  • Sustainable Development

Environmental Achievements

  • Invested INR 285 Crores in financing MSMEs engaged in sustainable initiatives such as renewable energy, waste management, and water conservation.

Social Achievements

  • Increased representation of women-led businesses in its portfolio from 1,450 in March 2022 to nearly 6,000 female entrepreneurs as of March 2024.
  • Provided data-driven bespoke finance solutions to over 80,000 MSMEs across India.

Governance Achievements

  • Maintained a Capital Adequacy Ratio of 20.75% as of March 31, 2024, well above the regulatory minimum of 15%.

Climate Goals & Targets

Long-term Goals:
  • Achieve 50% off-book AUM.
Medium-term Goals:
  • Onboard 200,000 new retailers within the next three years; achieve incremental AUM of INR 1500 Cr and PAT of INR 100 Cr with MSL subsidiary.
Short-term Goals:
  • Increase share of higher yielding products in AUM mix; launch new Micro branches to reach ~240; onboard 50,000 retailers this year.

Environmental Challenges

  • Vast MSME credit gap (estimated at INR 92 trillion for FY23) and lack of access to fast and easy credit for MSMEs.
  • Data security and privacy risks associated with access to vast amounts of borrower data.
  • Difficulty in obtaining data from MSMEs due to the unorganized nature of the sector.
  • Challenges in implementing ESG initiatives due to limited qualified internal resources.
Mitigation Strategies
  • Developed a data-driven approach to credit assessment using GST data, banking information, and credit bureau reports.
  • Implemented robust encryption protocols, access control procedures, regular security audits, and disaster recovery plans to protect data.
  • Leveraged partnerships with 13 financial partners through the Co-lending model.
  • Engaged external consultants to support ESG initiatives.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Green Asset Financing (Rooftop Solar)

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 5
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 13

Not disclosed

Sustainable Products & Innovation

  • Rooftop solar loans

Awards & Recognition

  • Best MSME Lending Company of the Year (2nd Annual NBFC & Fintech Excellence Awards 2023)
  • Best SME Lending Fintech (Bharat Insurance & Fintech Summit & Awards 2023)
  • Best Digital Innovation of the Year (MSME Lending) (BFSI Innovation Confex & Awards 2023)
  • Best Use of Technology (Bharat Insurance & Fintech Summit & Awards 2023)
  • Best NBFC in MSME Co-Lending (NBFC Leadership Awards 2023)
  • Best Innovative Digital Lending Product (DNA India NBFC Summit and Awards 2023)
  • Best Use of App to Enhance Customer Experience (SMART CX Summit & Awards 2023)

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Not disclosed

Environmental Achievements

  • Allocated financial support for conducting energy audits in 60 MSME clusters to help them shift to cleaner energy sources.

Social Achievements

  • Increased Mudra loan limits, supporting entrepreneurs; introduced three employment-linked incentive schemes allocating ₹2 lakh crore for job creation; aims to skill 20 lakh youth and upgrade 1,000 ITIs.
  • Creation of e-commerce export hubs in public-private-partnership (PPP) mode to benefit labor-intensive sectors.

Governance Achievements

  • Reduced compliance burden by lowering the turnover threshold for mandatory onboarding on the TReDS platform.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • MSMEs typically lack sufficient collateral, and their financial records often do not meet banking standards, making it difficult for banks to extend credit to them.
  • Many MSME owners, especially in rural areas, may lack the skills to leverage digital credit assessment models.
  • Inaccuracies in external data sources like GST filings could impact credit decisions.
Mitigation Strategies
  • New credit guarantee scheme facilitating term loans for MSMEs to purchase machinery and equipment without requiring collateral or third-party guarantees.
  • New mechanism to ensure MSMEs continue to receive bank credit during stress periods, even if they are in the special mention account (SMA) stage.
  • Public sector banks are set to develop new credit assessment models based on the digital footprints of MSMEs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed