Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Sustainable Livelihoods
• Customer Data Privacy
• Employee Engagement
• Statutory Compliances
• Responsible Products and Services
• Customer Value
• Sustainable Management of Natural Resources
• Human Rights
• Marketing and Communications
• Learning and Development
• Health and Safety
• Ethics, Transparency and Accountability
• Public Policy Advocacy
• Environment Management
• Corporate Governance

Environmental Achievements

• Head Office located in Gold Standard Green Building
• Plantation of 20 Ha. of mangrove plantation
• 4,400 Tonnes Carbon sequestration
• 30,000 Kilo Litre of rainwater harvesting potential created
• Mega Joules energy saved using energy efficient technologies

Social Achievements

• 45,133 ultra-poor women’s sustainable livelihoods created
• 13,04,557 women covered under preventive health, and 1,62,104 patients provided healthcare services
• 13,49,690 households covered under nutrition programme
• 99,302 children provided education support
• 7,304 youths skilled for jobs in organised sector
• 20.10 million customers
• Reduced microcredit interest rate by 70 basis points to 17.95%

Governance Achievements

• Robust internal controls across all processes and departments
• Nine Board Committees (Audit, Nomination & Remuneration, Risk Management, IT Strategy, Customer Service, CSR, Stakeholders Relationship, Committee of Directors, Special Committee for Monitoring High Value Frauds)

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown due to COVID-19
• Loss of customer trust in private banking sector
• 64% of loan book tied to high-risk microloan portfolio
• 91% priority sector loan
• Macroeconomic uncertainties
• Socio-political and economic uncertainties
• Natural calamities
• Credit risk
• Market and liquidity risk
• Operational risk
• Technology risk
• Cybersecurity risk
• Compliance risk
• Reputation risk
• Employee retention

Mitigation Strategies

• Close monitoring of global and Indian economy
• Established Risk Management Policy
• Standard Asset provisioning on microloan portfolio
• Additional standard advances provisioning against potential impact of COVID-19
• 80% of borrowers resilient to COVID-19 fallout
• Deep penetration in tier 3-6 locations
• Historically high resilience of microloan portfolio
• Credit and Recovery Policy
• Enterprise Risk Management and Risk Appetite framework
• Granular and diversified portfolio
• Investment Policy, Asset Liability Management Policy, Derivatives Policy
• Asset Liability Management Committee
• Internal controls, systems, and procedures
• Operational Risk Management Policy
• Information Technology Strategy Committee
• Policies and control frameworks on change management, logical access management, IT outsourcing, and Data Centre processes
• Dedicated compliance team
• Reputation Risk Management Group
• Employee-centric value proposition
• Benchmarking benefits and compensation

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural calamities (flash floods)

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 5: Gender Equality

Targeting the Hard-Core Poor program, health, nutrition, drinking water and sanitation initiatives, education, skill development programs

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Sustainable Livelihoods
• Community Development
• Employee Engagement
• Environmental Stewardship

Environmental Achievements

• Head Office located in Gold Standard Green Building
• Mangrove plantation of 67,540 saplings was carried out in 20 Hectares
• 4,400 Tonnes Carbon sequestration
• 120,000 kilolitres of rainwater harvesting potential created

Social Achievements

• 94,110 ultra-poor women moved out of poverty through THP Programme
• 16,76,729 women covered under a preventive health programme
• 1,38,395 children provided education support
• 36,902 youths skilled for jobs in the organised sector
• 23 million customer base

Governance Achievements

• Implemented robust internal controls across all processes and departments
• Nine Board Committees established (Audit, Nomination & Remuneration, Risk Management, IT Strategy, Customer Service, Corporate Social Responsibility, Stakeholders Relationship, Committee of Directors, Special Committee for Monitoring High-Value Frauds)
• Compliance Committee established

Climate Goals & Targets

Environmental Challenges

• Slowdown of economic growth due to COVID-19 impact, resulting in increased NPAs
• Cybersecurity risks
• Maintaining portfolio quality in a challenging economic environment

Mitigation Strategies

• Accelerated technical write-off of ₹19.3 bn to strengthen balance sheet
• Strengthened cybersecurity framework
• Improved credit selection and strengthened collection processes
• Building teams with right capacity and capabilities
• Using alternate data sources and data science for better credit selection and portfolio monitoring
• Offering digital collection options

Supply Chain Management

Responsible Procurement

• Inclusion of local medium and small scale enterprises in vendor base
• Competency development of local vendors
• Transparent and accurate disclosure
• Timely and consistent payment cycles

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action

Various CSR initiatives contribute to these goals

Environmental Metrics

ESG Focus Areas

• Climate Change Related Risks
• Employee Engagement
• Customer Value
• Community Engagement and Development
• Human Rights
• Regulatory & Statutory Compliance
• Business Ethics & Governance
• Risk & Crisis Management
• Data Privacy & Digitalization
• Financial Inclusion

Environmental Achievements

• Transitioned to a digital banking ecosystem, reducing paper usage.
• Invested in energy-efficient lighting and water-saving technology, reducing power and water usage.
• Seamless digital transactions reduced vehicular emissions and commuting costs.
• Launched a fully digital savings account (Neo+).

Social Achievements

• Established banking outlets in underbanked areas, promoting financial inclusion.
• Launched financial literacy and empowerment initiatives for vulnerable groups.
• Provided financial assistance to customers affected by the pandemic.
• Launched the first ‘Android PoS’ to promote digital payments in remote areas.
• Received the “Gallup Exceptional Workplace Award” for employee engagement.

Governance Achievements

• Robust governance structure for climate-related risk mitigation.
• Robust due diligence mechanism for monitoring transactions and customer background checks.
• Processes, policies, procedures, systems, and tools ensure regulatory compliance.
• Compliance with statutory reporting requirements.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks (physical and transition risks impacting financial stability).
• Regulatory and statutory compliance requirements.
• Business ethics and governance risks (fund embezzlement, insider trading, money laundering).
• Risk and crisis management (uncertain and volatile risks).
• Data privacy and digitalization risks (data breaches, cybercrimes).

Mitigation Strategies

• Robust governance structure and climate-related risk mitigation strategy.
• Due diligence mechanism, processes, policies, and systems to ensure regulatory compliance.
• Strong ethical culture and effective governance practices.
• Robust crisis management framework and training.
• Robust cybersecurity measures and data protection policies.

Supply Chain Management

Responsible Procurement

• Periodic review meetings with value chain partners to assess performance and adherence to statutory norms.
• Incorporation of accountability and transparency in agreements with supply chain partners.
• Invoices cleared subject to deduction of applicable TDS.
• Confirmation of GST deposited by vendors.

Climate-Related Risks & Opportunities

Physical Risks

• Floods, droughts, erratic rainfall, supply chain disruptions

Transition Risks

• Changes in climate-related policies and regulations, emergence of new technologies, shifting customer sentiments

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: SEBI guidelines, NGRBC principles

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

Sustainable Products & Innovation

• Neo+ fully digital savings account
• Android PoS

Awards & Recognition

• Gallup Exceptional Workplace Award
• Award for ‘Best Digital Channel/Platform Implementation’ (December 2022) by IBS Intelligence

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Community Development
• Sustainable Development
• Climate Action
• Women Empowerment

Environmental Achievements

• Planted 4,17,525 saplings across 7 states as part of the Climate Action Programme.
• Mangrove plantation of 67,540 saplings in Gujarat, sequestering 2,248 tonnes of CO2 annually.

Social Achievements

• Served over 3.35 crore customers across 35 states and union territories.
• Expanded its home loan network to over 450 branches and more than 300 banking units.
• CSR initiatives impacted more than 24 lakh beneficiaries across 14 states.
• Total workforce crossed 75,000 employees.

Governance Achievements

• Successful transition to a new Core Banking System (CBS).
• Strengthened leadership team with key appointments.
• Implemented robust risk management and compliance frameworks.

Climate Goals & Targets

Environmental Challenges

• Muted household consumption due to lagged impact of the pandemic and global uncertainties.
• Tight liquidity in the market.
• Maintaining asset quality in the Emerging Entrepreneurs Business portfolio.

Mitigation Strategies

• Investment in dedicated credit and collections verticals.
• Leveraging data analytics and technology for early warning systems.
• Improving portfolio mix with greater emphasis on secured assets.
• Strengthening credit assessment processes for Group Loan and SBAL.

Climate-Related Risks & Opportunities

Physical Risks

• Erratic rainfall patterns

Reporting Standards

Frameworks Used: BRSR

Certifications: ISO 27001:2013 (for information security management)

UN Sustainable Development Goals

• Goal 13 (Climate Action)

Climate Action Programme contributes to reducing GHG emissions and enhancing carbon sequestration.