Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethics & Transparency
• Product Responsibility
• Human Resources
• Corporate Social Responsibility
• Respect for Human Rights
• Responsible lending norms
• Public Policy Advocacy
• Inclusive Growth
• Customer Engagement
• Environmental Sustainability
• Community Development

Environmental Achievements

• Achieved LEED Gold Certification for corporate office building
• Initiatives to reduce paper usage through digitalization
• Installation of solar power panels resulting in energy savings
• Discontinued use of bottled water in offices
• Supported "The Plastic Recyclothon" campaign

Social Achievements

• Provided housing loans to economically weaker sections and low-income groups
• Supported various social initiatives through the H T Parekh Foundation (healthcare, WASH, education, skilling)
• Provided crèche facility for children of female employees
• Conducted employee training programs (safety, skill up-gradation, etc.)
• 99.4% of customer complaints resolved

Governance Achievements

• Formulated and adopted various codes and policies (Code of Conduct, Anti-Bribery and Anti-Corruption Policy, etc.)
• Strengthened guidance mechanism for directors/senior management to address potential conflicts of interest
• Annual review of BR performance by the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Climate change risks (extreme weather conditions impacting borrowers' ability to service loans)
• Managing stakeholder complaints effectively

Mitigation Strategies

• Responsible Lending Policy
• Upgraded complaint management technology platform
• Corporate Whistleblower Initiative (CWI) portal

Supply Chain Management

Responsible Procurement

• Use of environmentally friendly materials with higher recycle content
• Regional priority to material purchases of recycled products

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Reporting Standards

Frameworks Used: National Voluntary Guidelines (NVG) on Social, Environmental and Economic Responsibilities of Business

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Affordable Housing
• Financial Inclusion

Environmental Achievements

• Over three-fourth of HDFC’s lease rental discounting portfolio has been certified as green buildings by either the Indian Green Building Council (IGBC) or Leadership in Energy and Environmental Design (LEED).
• Initiated solar panel installations on some of HDFC’s owned premises.
• Participated in a refinance scheme promoted by the NHB and the Agence Francaise de Développement (AFD), France to promote green and affordable residential housing in India.

Social Achievements

• HDFC has the largest number of home loan customers who have availed benefits under CLSS.
• In FY20, 36% of home loans approved in volume terms and 18% in value terms have been to customers from the Economically Weaker Section (EWS) and Low-Income Groups (LIG).
• Supported the rebuilding of disaster resilient houses and long-term rehabilitation of distressed families belonging to weaker socio-economic groups in Kerala.
• The HDFC group made a commitment of ₹ 150 crore to the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES) to support the fight against the COVID-19 pandemic.
• Supported vulnerable communities affected by COVID-19 in 13 states across India through CSR initiatives.

Governance Achievements

• HDFC believes that transparency and consistency in communication with our stakeholders is key to good governance.
• The core competencies that each board member brings are directly linked to the overall strategy of the Corporation.
• Established a Corporate Whistleblower Initiative (CWI) portal for reporting concerns.

Climate Goals & Targets

Environmental Challenges

• Climate change and its long-term risks associated with homes built in coastal areas.
• COVID-19 pandemic and its impact on operations and stakeholder safety.
• Supply chain disruptions (implied due to the pandemic).

Mitigation Strategies

• Monitoring urbanisation trends and demographic changes.
• Shifting to Work From Home (WFH) during the lockdown.
• Creating a cross-functional team, ‘HDFC Digi-Future’, to brainstorm and create a roadmap for future business processes.
• Increased digitalisation footprint to maintain customer engagement.
• Prepared a handbook, ‘Back to Office’, providing tips on the do’s and don’ts to equip and shield employees on resumption of work in offices, post the lockdown.

Supply Chain Management

Responsible Procurement

• Rigorous internal selection criteria for outsourced staff and suppliers
• Compliance with labour laws, human rights, and other local regulations

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (floods)
• Rising sea levels

Opportunities

• Development of energy-efficient products and projects

Reporting Standards

Frameworks Used: UN SDGs

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 11
• Goal 12
• Goal 13
• Goal 15

CSR projects mapped against 12 UN SDGs (see Annex 1 in the report).

Awards & Recognition

• Best performing primary lending institution under CLSS for EWS/LIG under the Pradhan Mantri Awas Yojana (Urban)
• Awards for corporate governance, being a leading home loan provider, commitment to sustainability and for investor relations

Environmental Metrics

ESG Focus Areas

• Affordable Housing
• Social Responsibility
• Responsible Lending
• Climate Change
• Green Financing

Environmental Achievements

• Installed solar panels in certain owned office premises
• Installed automated power factor control panels to reduce power distribution losses
• Used LED light fittings and energy star rated electronic equipment
• Reduced paper consumption through digitalization
• Disposed of approximately 7,016 kgs of e-waste through authorized recyclers

Social Achievements

• Largest number of home loan customers availing benefits under Credit Linked Subsidy Scheme (CLSS)
• 48% of total housing loans disbursed to first-time homebuyers in FY21
• 70% in value terms of housing loans had women as property owners
• Increased percentage of women employees in new recruits to 34%
• Various employee well-being programs including health insurance, accident insurance, parental leave, and training programs

Governance Achievements

• Business Responsibility Policy approved by the board
• Anti-bribery and anti-corruption policy in place
• Policy on management of conflict of interest implemented
• Regular review of BR policies by department heads, business heads, and executive directors
• Compliance with extant regulations

Climate Goals & Targets

Environmental Challenges

• Reputational risks from failing to meet stakeholder expectations on climate-related financial disclosures
• Climate change risks (physical and transition risks)
• COVID-19 pandemic impacting operations and customer service

Mitigation Strategies

• Increased due diligence on environmental and social risks in lending policies
• Encouraging homeowners to take home insurance against climate risks
• Enhanced due diligence and monitoring of E&S risks on certain loans
• Increased efforts to reduce carbon footprint through employee, customer, and stakeholder sensitization
• Shift to digital platforms for increased efficiency and reduced paper consumption
• Implementation of COVID-19 safety protocols in offices

Supply Chain Management

Responsible Procurement

• Preference given to local suppliers
• Engagement with suppliers integrating environmental and social considerations

Climate-Related Risks & Opportunities

Physical Risks

• Damage to physical assets from climate-related disasters

Transition Risks

• Increased expenses in transitioning to meet new environmental standards

Opportunities

• Building a larger green portfolio
• Access to greater pools of green funding
• Cost efficiencies from increased energy efficiency

Reporting Standards

Frameworks Used: BRSR

Certifications: ISO 14001:2015

Third-party Assurance: Centre for Environmental Research & Education

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installed solar power roof panels in some owned premises.
• Reduced e-waste through authorized recyclers (approximately 7,016 kg disposed).
• Reduced paper consumption and donated proceeds from paper scrap to Cancer Patients Aid Association.
• Implemented an Environment and Social Policy Framework and Environmental and Social Risk Management System for screening loans.

Social Achievements

• Provided housing finance facilities to farmers, agriculturists, planters, and horticulturists.
• Launched ‘Women Power’ product offering concessional home loan interest rates to women.
• Supported various social initiative projects such as education buildings, senior citizen housing, and hospitals.
• Maintained a 95% employee retention rate.

Governance Achievements

• Voluntarily adopted the Business Responsibility and Sustainability Report (BRSR) format in FY21.
• Implemented a Corporate Whistle Blower Initiative (CWI) portal.
• Maintained transparency in communication with stakeholders on ESG matters.

Climate Goals & Targets

Environmental Challenges

• Climate change risks, including flood risk and water stress, impacting the mortgage portfolio.
• COVID-19 pandemic impacting operations and stakeholder engagement.

Mitigation Strategies

• Encouraging home loan and home insurance to mitigate climate-related risks.
• Increased stakeholder engagement through virtual platforms.
• Implemented COVID-19 safety and hygiene protocols in office premises.
• Provided COVID-19 paid leave policy and assistance to employees and their families.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference for registered entities under the Goods and Services Network (over 95% of vendors).
• Codes of Conduct for Direct Selling Agents and other third-party providers.
• Green standard compliant IT vendors.

Climate-Related Risks & Opportunities

Physical Risks

• Flood risk
• Water stress

Transition Risks

• Not disclosed

Opportunities

• Funding of green and affordable housing.

Reporting Standards

Frameworks Used: BRSR, TCFD

Certifications: ISO 14001:2015 (Data Centers)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 3 (Good Health and Well-being)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 11 (Sustainable Cities and Communities)
• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 10 (Reduced Inequalities)

CSR projects mapped against UN SDGs (see Annex 1).

Sustainable Products & Innovation

• Green and affordable housing finance products.

Awards & Recognition

• 'Company of The Year' at The Economic Times Awards for Corporate Excellence (2020)
• 'Golden Peacock Award for Excellence in Corporate Governance' (2020)
• 'Best Audit Committee Award' (2019)

Environmental Metrics

ESG Focus Areas

• Financial inclusion through affordable housing
• Social responsibility towards society
• Responsible Lending
• Net-zero emissions pathway
• Green and sustainable initiatives

Environmental Achievements

• Installed solar power roof panels at some offices
• Achieved 261 MWh of carbon emission savings through IPM deployment
• Recycled 18,706 kgs of e-waste
• Reduced paper consumption through digitalization

Social Achievements

• Largest number of beneficiaries (3.14 lac) under CLSS
• Women constituted 26% of total employee strength; 30% in new recruits
• Various employee well-being initiatives (health insurance, parental leave, etc.)
• CSR initiatives focusing on healthcare, education, livelihoods, and environmental sustainability

Governance Achievements

• Board and senior management monitor ESG responsibilities
• Anti-bribery and anti-corruption policy in place
• Regular review of Business Responsibility policies

Climate Goals & Targets

Environmental Challenges

• Reputational risks from unmet stakeholder expectations on climate-related disclosures
• Climate change physical risks (damage to assets)
• Climate change transition risks (increased expenses meeting new environmental standards)

Mitigation Strategies

• Increased due diligence on non-individual loan portfolio for E&S risks
• Encouraging homeowners to take home insurance
• Participation in CDP questionnaire on climate change
• Increased access to diversified pool of green funding
• Launched Green and Sustainable Deposits

Supply Chain Management

Responsible Procurement

• Preference for local suppliers
• Engagement with suppliers integrating environmental and social considerations

Climate-Related Risks & Opportunities

Physical Risks

• Damage to assets from extreme weather

Transition Risks

• Increased expenses meeting new environmental standards

Opportunities

• Building a larger green portfolio
• Access to greater pools of green funding

Reporting Standards

Frameworks Used: NGRBC

Certifications: ISO 14001:2015 (data centers)

Third-party Assurance: Centre for Environmental Research & Education (CERE)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions in all spheres of operations; Increased number of offices with green accreditation and renewable energy; Cumulatively disbursed ₹ 27,889 crore of individual housing loans to home buyers in certified green building projects; Three-fourths of Lease Rental Discounting (LRD) portfolio has green ratings from various accredited green rating institutions.
• Launched green and sustainable deposits for retail depositors; Partnered with Indian Green Building Council (IGBC) to promote green housing.

Social Achievements

• Largest number of home loan customers (over 3.14 lac) who have availed benefits under the Credit Linked Subsidy Scheme (CLSS); 70% in value terms of total loans disbursed had women as owners of the property; Supported various social initiative projects such as education buildings, senior citizen housing and hospitals; Focus on identifying deep geographies to expand reach to customers; Provided housing finance facilities to farmers, agriculturists, planters and horticulturists; Addressed housing needs of those in the informal sector through 'HDFC Reach'; 48% of loans approved in volume terms were to the middle income group, 29% to the low income group and economically weaker section and 23% to the high income group.

Governance Achievements

• Highest ISS Governance Score at 1; Recognised amongst India's Top Sustainable Companies by Business World; Awarded 'Company with the Best Integrated Report' by the Asian Centre for Corporate Governance & Sustainability; Recognition from SEBI for voluntarily adopting the 'Business Responsibility and Sustainability Report' for FY21 ahead of timelines prescribed by SEBI; Felicitated under the 'Leadership' category in the Corporate Governance Score Card, 2021.

Climate Goals & Targets

Environmental Challenges

• Climate change risks including flood risk and water stress on the mortgage portfolio; Unprecedented weather patterns impacting natural ecosystems, biodiversity, water resources and people.

Mitigation Strategies

• Incorporated climate risk into Risk Management Committee's monitoring; Environmental and social (E&S) risk framework implemented for various components of the lending portfolio; Pools of funding from multilateral agencies used for on-lending to developers for green and affordable housing with enhanced E&S due diligence; Refinance from National Housing Bank and French Development Agency (AFD) under SUNREF scheme; Encouraging customers to take home loan and home insurance; Engaging with developers to sensitise them on E&S best practices.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Systems and processes to screen vendors and service providers; Over 95% of vendors are registered entities under the Goods and Services Tax Network; IT vendors are green standard compliant and data centres are certified under Environmental Management System ISO 14001:2015; IT vendors hold other certifications under Occupational Health and Safety (OH&S) and Quality Management System namely ISO 45001:2018 and ISO 9001:2015; Codes of Conduct for third parties that work directly with HDFC.

Climate-Related Risks & Opportunities

Physical Risks

• Flood risk
• Water stress
• Coastal inundation

Transition Risks

• Not disclosed

Opportunities

• Opportunities in green housing

Reporting Standards

Frameworks Used: GRI, TCFD, CDP

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 11
• Goal 15

Annex 1 maps CSR projects against the Sustainable Development Goals

Sustainable Products & Innovation

• Green and sustainable deposits

Awards & Recognition

• CRISIL Sustainability Year Book 2022: HDFC amongst the Top 10 companies under ‘Leadership’ Category
• Leading Housing Finance Company at the Dun & Bradstreet BFSI & Fintech Awards, 2022
• Leadership in Employee Development at ESG India Leadership Awards, 2021
• Recognised amongst India's Top Sustainable Companies by Business World
• Accredited Green Certifications for certain offices
• Highest ISS Governance Score at 1
• Felicitated under the 'Leadership' category in the Corporate Governance Score Card, 2021

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions in all spheres of operations; Increased number of offices with green accreditation and renewable energy; Promotion of green, smart and affordable homes and funding of green commercial buildings; Cumulatively disbursed ₹ 27,889 crore of individual housing loans to home buyers in certified green building projects; Three-fourths of Lease Rental Discounting (LRD) portfolio has green ratings from various accredited green rating institutions.
• Launched green and sustainable deposits for retail depositors.

Social Achievements

• Largest number of home loan customers who have availed benefits under the CLSS (Credit Linked Subsidy Scheme); 70% in value terms of total loans disbursed had women as owners of the property; Focus on identifying deep geographies to expand reach to customers; Support to underserved sections of society through equity investments and funding lines for on-lending to microfinance and MSME sectors; Support for social initiative projects such as education buildings, senior citizen housing and hospitals.
• Increased interactions with various ESG teams of investors.

Governance Achievements

• Highest ISS Governance Score (1); Felicitated under the 'Leadership' category in the Corporate Governance Score Card, 2021; Voluntarily adopted the 'Business Responsibility and Sustainability Report' for FY21, ahead of timelines prescribed by SEBI; Awarded 'Company with the Best Integrated Report' by the Asian Centre for Corporate Governance & Sustainability.

Climate Goals & Targets

Environmental Challenges

• Climate change risks including flood risk and water stress; Financial impact of climate change on the Corporation: physical and transition risks.

Mitigation Strategies

• Incorporation of climate risk into Risk Management Committee's monitoring; Environmental and social (E&S) risk framework for various components of the lending portfolio; Pools of funding from multilateral agencies for on-lending to developers for green and affordable housing with enhanced E&S due diligence; Refinance from National Housing Bank and AFD under SUNREF scheme; MoU with IGBC to promote green housing; Encourage customers to take home loan and home insurance.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Systems and processes to screen vendors; Over 95% of vendors are registered entities under the Goods and Services Tax Network; Codes of Conduct for third parties; IT vendors are green standard compliant and data centers are certified under Environmental Management System ISO 14001:2015; Expect third-party providers to adhere to responsible business practices.

Climate-Related Risks & Opportunities

Physical Risks

• Flood risk
• Water stress
• Coastal inundation

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Opportunities in green housing

Reporting Standards

Frameworks Used: GRI, TCFD, CDP

Certifications: ISO 14001:2015 (IT vendors), ISO 45001:2018 (IT vendors), ISO 9001:2015 (IT vendors), LEED, GRIHA, IGBC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 11
• Goal 15

CSR projects mapped against UN SDGs (see Annex 1 in the report)

Sustainable Products & Innovation

• Green and sustainable deposits

Awards & Recognition

• CRISIL Sustainability Year Book 2022: Top 10 companies under ‘Leadership’ Category
• Leading Housing Finance Company at the Dun & Bradstreet BFSI & Fintech Awards, 2022
• Recognition from SEBI for voluntarily adopting the 'Business Responsibility and Sustainability Report'
• 'Company with the Best Integrated Report' by the Asian Centre for Corporate Governance & Sustainability
• 'Leadership in Employee Development' at ESG India Leadership Awards, 2021
• India's Top Sustainable Companies by Business World
• Green Certifications for certain offices

Environmental Metrics

ESG Focus Areas

• Climate Change
• Affordable Housing
• Diversity & Inclusion
• Responsible Lending
• Community Development

Environmental Achievements

• Reduced Scope 1 and 2 emissions from 15,884.56 MT CO₂e in FY22 to 14,815.46 MT CO₂e in FY23
• ~4% of the Corporation’s individual loan book comprises loans where the homes have green ratings.
• Cumulatively disbursed ₹ 32,795 crore of individual housing loans to home buyers in certified green building projects.

Social Achievements

• Financed over 10 million housing units since inception.
• 67% of loans disbursed in FY23 had women as property owners.
• Launched ‘Women Power’ product to encourage women homeownership.
• CSR spend of ₹213 crore, focusing on education, healthcare, persons with disabilities, and environmental sustainability.

Governance Achievements

• Received ‘A’ rating from MSCI ESG Ratings.
• Received a ‘B’ score from CDP for climate change action.
• Scored 9/10 on MSCI ESG Controversies Report with no controversies.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on lending portfolio (physical and transition risks)
• Data availability for calculating financed emissions

Mitigation Strategies

• Incorporation of E&S covenants in loan agreements
• Enhanced E&S due diligence through internal/external assessments
• Partnership with CERE to measure and validate carbon footprint
• Pilot study using PCAF methodology for financed emissions calculation

Supply Chain Management

Supplier Audits: Over 95% of vendors are registered entities under the Goods and Services Tax Network.

Responsible Procurement

• Codes of Conduct for Direct Selling Agents and other third-party providers
• Green standard compliant IT vendors
• Sanctions screening

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels
• Floods
• Water stress
• Coastal inundation
• Earthquake
• Landslides
• Fires
• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts towards green finance

Opportunities

• Growth in green housing finance
• Development of climate-resilient products

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001:2015 (IT vendors), ISO 45001:2018 (IT vendors), ISO 9001:2015 (IT vendors)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 15 (Life on Land)

CSR projects mapped against UN SDGs.

Sustainable Products & Innovation

• Green and sustainable deposits
• Products for green housing

Awards & Recognition

• India’s Top Most Sustainable Company by Business World Magazine
• Best Performing Housing Finance Company under PMAY
• M&A Deal of the Year
• Jury Special Award for Contribution to Advancing Financial Inclusion
• India’s Leading Housing Finance Company
• Leadership category in Corporate Governance
• Technology Transformation Leader
• Golden Peacock Award for Excellence in Corporate Governance