Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethics, Transparency and Accountability
• Safety and sustainability of goods & services
• Promotion of wellbeing of employees
• Responsiveness towards stakeholders
• Promoting human rights
• Protecting the environment
• Responsibility towards public and regulatory policy
• Supporting inclusive growth and development
• Providing value to customers & consumers

Social Achievements

• One investor complaint was received and resolved satisfactorily.

Governance Achievements

• BR performance is assessed annually.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Employee Wellbeing
• Corporate Governance
• Data Privacy and Cyber Security
• Employee Growth and Development
• Financial Inclusion
• Regulatory Compliance
• Customer Support and Satisfaction
• Human Rights
• Climate Change
• Local Employment
• Environment
• Economic and Social Impact
• Geographical Expansion
• Branding and Reputation
• Operational Eco Efficiency and Waste
• Diversity and Inclusiveness

Environmental Achievements

• Transitioned to energy-efficient lighting systems within offices
• Implemented paper conservation practices

Social Achievements

• 44% of customers were first-time users/first-time buyers
• 95% of home loans portfolio comprised entrepreneurs with semi-formal income
• 58% of loans given to businesses owned wholly or partly by women
• More than 80% of Vehicle Finance branches located in rural areas
• Forayed into financing electric vehicles
• Over 230 branches located in RBI underbanked districts
• Digitalized business and customer engagement processes during the pandemic
• Implemented CSR programs including health services for trucking industry and scholarships for their children
• Rural development initiatives in water and sanitation, hospital infrastructure, education, and sports

Governance Achievements

• Developed a strong governance structure and efficient management system
• Ensured regulatory compliance and imparted awareness throughout the organization
• Transitioned all processes to a digital platform
• Secured 100% of customers' data across 1,000 branches
• Adheres to the International Finance Corporation’s guidelines for ESG-based lending

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Adherence to IFC guidelines for ESG-based lending

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Corporate Governance
• Data Privacy and Cyber Security
• Regulatory Compliance
• Employee Growth and Development
• Employee Wellbeing
• Customer Support and Satisfaction
• Geographical Expansion
• Human Rights
• CSR
• Branding and Reputation
• Climate Change
• Operational Eco-Efficiency and Waste
• Diversity and Inclusiveness
• Local Employment

Environmental Achievements

• New office buildings will follow sustainable design and architecture principles and be LEED certified green buildings
• Entered the business of financing electric vehicles
• Digitization of processes reduced at least 3500 prints/copies per month (SME bill discounting)
• Digitization of customer onboarding and credit underwriting process (SBPL), reducing paper usage.

Social Achievements

• Focus on first-time borrowers (FTB) and new-to-credit customers (NTCC) ensuring financial inclusion
• 80% of branches in Tier III-VI towns ensuring financial inclusion
• Various training programs throughout the year on topics such as Prevention of Sexual Harassment, Code of Conduct, Know Your Customer guidelines, and ISO 9001:2015.
• 100% of permanent employees covered by health insurance, accident insurance, maternity benefits, and paternity benefits.

Governance Achievements

• Robust "Code of Conduct and Ethics Policy"
• Adherence to IFC guidelines on ESG-based lending
• Internal task force evaluates the working of policies.

Climate Goals & Targets

Environmental Challenges

• Data Privacy and Cyber Security risks
• Regulatory Compliance
• Climate Change impacts

Mitigation Strategies

• Secured 100% of customers’ data in 1,100+ branches and deployed multi-layer protection technology
• Supported employees with awareness and training programs in cyber privacy and security
• Ensures adherence to all applicable regulations and monitoring of upcoming regulations
• New office buildings will be LEED certified green buildings
• Financing electric vehicles

Supply Chain Management

Supplier Audits: 100% (Health and safety practices and working conditions)

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Electric vehicle financing

Reporting Standards

Frameworks Used: BRSR

Certifications: ISO 9001:2015, ISO 30408:2016

Sustainable Products & Innovation

• Electric vehicle financing

Awards & Recognition

• Best Performing Primary Lending Institution (PLIs) under PMAY (U) – Credit Linked Subsidy Scheme (CLSS) for 2021-2022

Environmental Metrics

ESG Focus Areas

• Ethical Business
• Sustainability
• Employee Wellness
• Responsiveness
• Human Rights
• Environment
• Business expansion
• Data Privacy & Security
• Digitization
• Innovation
• Access to Finance

Environmental Achievements

• Decrease in energy consumption from 4.69 GJ to 4.63 GJ per crore of total income in FY 23
• Transitioned from paper-based processes to digital processes, saving more than 40,000 paper sheets per year
• Recycling of 7.5 metric tonnes of non-hazardous waste during the year

Social Achievements

• Zero instances of work-related injury
• HUDCO award as ‘Best Performance Primary Lending Institution’ under PMAY
• Business expansion through 226 branches in under-banked districts
• Employee wellness initiatives through ISO 30408:2016 certified HR operations
• Corporate social responsibility (CSR) programs for the betterment of marginalized communities

Governance Achievements

• Nil data breach during the year
• More than 80 training programs for employees across grades
• Strong digitalization initiatives across all businesses

Climate Goals & Targets

Environmental Challenges

• Rising interest rate regime impacting NBFCs
• Macroeconomic challenges such as pandemic, geopolitical conflicts, and inflationary pressures

Mitigation Strategies

• Closely tracked RBI’s commentaries and market dynamics
• Engaged in continuous dialogue with lenders to ensure healthy ALM
• Managed the mix of borrowings from different sources to optimize the cost of funds
• Monitored liquidity closely to ensure availability of funds at best rates

Supply Chain Management

Supplier Audits: 100%

Responsible Procurement

• Policy for sustainable sourcing (recycled A4 sheets)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products
• Financing electric vehicles

Reporting Standards

Frameworks Used: BRSR

Certifications: ISO 30408:2016, ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 8
• Goal 10

CSR programs align with these SDGs in areas of health, education, women empowerment, and road safety

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• HUDCO award as ‘Best Performance Primary Lending Institution’ under PMAY

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Corporate Governance
• Data Privacy and Cyber Security
• Regulatory Compliance
• Employee Growth and Development
• Employee Wellbeing
• Customer Support and Satisfaction
• Geographical Expansion
• Human Rights
• CSR
• Branding and Reputation
• Climate Change
• Operational eco-efficiency and emission Waste
• Diversity and Inclusiveness
• Local Employment

Environmental Achievements

• Achieved green building status for corporate office by 2024
• Replaced 100% of CFL lighting with LED systems at all operations by 2025
• Reduced water consumption across the company operations through efficient water flow solutions
• Initiated the funding of electric vehicles
• Implemented energy efficiency measures in the office premises
• Promoting the use of recycled paper and double-sided printing. Digitization has reduced paper consumption. Effective e-waste management.

Social Achievements

• Launched the Socially Responsible Corporate Citizenship Program (SRCCP) to engage employees in giving back to the community
• Over 54 lakh lives impacted across 21 states
• Saving lives with funding for congenital heart surgeries
• Supporting Commercial Vehicle Crew Members’ (CVCMs) well-being
• Providing drinking water and school infrastructure
• Scholarships spanning primary to higher education
• Preserving cultural heritage through historical monument conservation
• Prayas: Rural financial literacy program
• Sports support for talented athletes
• Chola Helping Hand: Employee volunteering program
• Prioritizing women borrowers
• Provided sports kits to 400 women and children
• Female Golf Players sponsorship
• Health insurance coverage for employees. Health support for trucking and transportation communities and scholarships for their wards. Well-being webinars organised for employees and their families.
• Chola is an equal opportunities employer.

Governance Achievements

• Implemented best-in-class data protection tools
• Providing credit to new and first-time entrepreneurs
• Established a strong governance & compliance culture, embedded with ethical practices and integrity across all levels of the organization
• Leveraging technology, compliances are monitored real time and vigilantly tracked for implementation by a team of 20+ independent qualified professionals having collective experience of over 200+ years
• A structured approach of three-tier compliance testing process through its compliance, internal audit and enterprise risk management teams ensures effective oversight and adherence to all regulatory standards and further strengthens the company’s overall governance framework

Climate Goals & Targets

Environmental Challenges

• Elevated inflation
• Tight monetary and financial conditions
• Escalating geopolitical tensions
• Regulatory intervention on bank credit to NBFCs
• Rising interest rates and tightening liquidity
• Climate risks

Mitigation Strategies

• Broadened its lender base and optimized borrowing costs
• Maintained a focus on ALM, engaging with lenders and market experts to secure funds at optimal rates
• Secured funds at optimal rates
• Implemented several measures due to which the new office buildings of the company will necessarily follow sustainable design and architecture principles and be LEED (Leadership in Energy and Environmental Design) certified green buildings.

Supply Chain Management

Supplier Audits: 100%

Responsible Procurement

• Sustainable sourcing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, NGRBC

Certifications: ISO 30408:2016, ISO 9001:2015

Third-party Assurance: M/s. Sundaram & Srinivasan, Chartered Accountants

Awards & Recognition

• Impactful Co-creation Award 2024 at the National CSR Summit