939769 SIP myths you must know!
Last month, SBI had said the bank was also in the process of identifying climate risks that have the potential to generate a substantive business
Banks are planning to create a common framework for Environment, Social, and Governance (ESG) issues while carrying out credit assessment and include climate risk as part of their risk management policy. This comes after Prime Minister Narendra Modi on Monday said at the COP26 global climate summit that India will meet a target of net zero emissions by 2070, The Economic Times reported on Wednesday.
Lenders are following individual policies at some level
According to the publication, international investors have started demanding information about ESG policy of the companies before investing into equity and liability products. It is time to decide about the ESG framework for Indian banking.
Experts said that banks need to plan in accordance with the county’s climate goals and managing climate risk for a sustained sustained growth and recovery of capital. Grant Thornton Bharat said that banks, being a conventional provider of debt capital, also want climate risk mitigated for sustained growth and recovery of capital.
Another bank official said that some lenders are already following their individual policies at some level and that needs to be an agreement on the common metrics before attempting to implement them.
Last month, State Bank of India (SBI) had said the bank was also in the process of identifying climate risks that have the potential to generate a substantive business.