IndusInd Bank’s approach to ESG
December 7th, 2020
1 Good Ecology is Good For Business
2 Good Ecology ….
GOVERNANCE Framework to oversee implementation of sustainable strategies, practices and policies
Sustainable Responsible RESPONSIBLE BANKING Finance Banking Environmental & Social risk assessment incorporated in our lending practices SUSTAINABLE FINANCE ESG integration in our products . Key Elements SUSTAINABLE OPERATIONS Corporate of Social Governance Sustainability Health, safety and enviromental performance of our Responsibility & ESG operations & Sustainable procurement practices in Supply Chain HUMAN CAPITAL DEVELOPMENT Emphasis on employee diversity, development and engagement Human . Sustainable Capital Operations Development CORPORATE SOCIAL RESPONSIBILITY Contributing to local communities and promoting the well-being of society and natural surrounds at large. .
3 Good Ecology Good Is Good for Business ….. Is Good for Business Is Good ….. • • • • India Modelsin Rural BusinessNew Financing andClean Tech Affirmative Green driver importantbusiness LivelihoodFinancing digitalplatforms B2Con customers Attract more B2B, Revenues
• • • • •
Robotics,etc (API, Cloud,ML, Digitaladoption SustainableFinance Costs for LowerFunding ATMs, Thin Servers Footprinte.g.Solar LowerCarbon largedigitalL&D employeereferrals & Large % internal Costs
. )
• • • • drivingpreferences Journeys@ Mobile ClientExperience portfoliooutcome engagementaids Community Purpose via Engagementand EmployeeMotivation build supportsfranchise BrandBuilding that Productivity - out
• • • • traps in lending Avoidenvironmental Capital Greater Access to Long Term Funding expandingbusiness enablesmandatefor Good Governance Investment
4
ESG is a Strategic Choice
5 Governance
CSR Board Level committee & Oversees the Bank’s Sustainability Vision & Strategy Sustainability Committee
Sustainability Council Reviews the Sustainability Vision, Policies & Strategies Reviews Sustainability Performance & progress of ESG targets
Management & Implementation of Strategies Sustainability Team Dedicated head of Sustainability to drive agenda Business and functional coordination
Sustainability SPOCs Change agents and points of contact of BUs in implementing policies & strategies
6 Governance ESG Policies
Workplace Health & Code of Conduct Safety Policy
Whistle Blower Policy CSR Policy
Sustainable Anti-Corruption, Anti- Procurement Policy Bribery Policy
Human Rights, Diversity& Inclusion Environment Policy Policy
Environment and Social
Management System Policy Sustainability Policy
7 Policies Targets KPIs 2018 2021 Environmental Green and climate financing portfolio <1% of loans 5% of loans through distinctive lending themes GHG Emissions Intensity and Energy (E) GHG: (Scope 1&2): GHG (Scope1&2): Footprint 5.2 MTCO2/Cr. Rev 15% reduction to 4.4 MTCO2/Cr. Rev Participation in Green Indices A-Rank in CDP (Carbon Disclosure Project) Maintain A-Rank or higher in CDP Submit to DJSI with a score >70 Sustainable procurement practices in the Some vendors exhibit sustainability practices 80% of vendors have ESG policies in place supply chain Vendor sustainability assessments in place
Social Women participation in workforce 19% Expand to 22%
Social, Livelihood and Inclusive Financing ~40% of all loans 45% of all loans Portfolio Employee engagement score to aid Internal initiatives Employee engagement with external benchmarking motivation and productivity Participation in community and outreach Green Champions Program In Addition: Bank wide volunteering participation of 10hr/staff & E- activity Learning (on Sustainability)
Governance ESG disclosure and Integrated Published but no external assurance Have external accredited agencies verify ESG / Integrated Reports & Reporting disclosures Formulation and Compliance to ESG Internal Disclosure External Disclosure of ESG Policies policies and CDP Programme Corporate Governance Score/ Rating Not participated Corporate governance score in a Leadership Category
ESMS Lending Filters ESMS filters implemented Expand ESMS to cover all Corporate loans with external assurance
8 Accountability & Targets & Accountability Disclosures
Current Practices Current Focus Areas Way Ahead
9 Disclosures A Few Achievements
• For the 5th consecutive • 10 Years of Sustainability year, the Bank retained Reporting • IBL’s Percentile Ranking its top position in DJSI improved by 16 • Published First points, jumping to 80 as • Securing Band A- in the Externally Assured compared to previous CDP India Climate Integrated Report in year. Change Rising Stars 2018-19
Carbon Dow Jones Disclosure Integrated Sustainability
Project Report Index
10 A Few Achievements Few A Alignment with SDGs Alignment Alignment with Sustainable Development Goals • • • • • • • • • • Lending in healthcare financing Livelihood housing Lending in infrastructure & Ruralbanking Microfinance Equal opportunity employer Lending in education RuralBanking Microfinance financing Livelihood Business Initiatives
• • • • • • • • • • • rehabilitation programs for women Legal literacy, andskilling IndusInd Enhancing access to education Promoting digital literacy MiddayMeal rehabilitation Legal literacy, andskilling for cancer health clinics,sanitation and support Improving health care access: mini Midday rehabilitation Legal Enhancing access to education Water Water stewardship literacy, andskilling Meal CSR CSR Initiatives
for for sports -
affected children Programme Programme programme programme
for for women for
women
• • • • • • • • • • • • • • • • Business Initiatives Rural inclusionFinancial Digitization Ruralbanking Microfinance Lending in infrastructure inclusionFinancial financing Renewableenergy Solar Ruralbanking Microfinance financing Livelihood housing Lending in affordable Ruralbanking Promoting digital literacy Microfinance banking ATMs
• • • • • • • • • • IndusInd education Enhancing access to initiative Stree Solarstreet lights Schoolson rooftop solar Solidwaste management Urban afforestation and culture preserving heritage, arts Areas of special interest: IndusInd education Enhancing access to CSR CSR Initiatives
Swabhimaan
for for Sports for for Sports
’
11
Examples of ESG @ Work
12 1. Sustainable Finance portfolio
Portfolio Review Methodology Verification by
Inclusion & Exclusion Criteria for each Sustainable Finance Sector Green & Climate Finance: Social, Livelihood & Inclusive Finance:
Sectors: Clean Energy, Energy Establishing strategy to achieve Efficiency, Green Building, Sectors: Affordable Housing, targets Renewable Energy WaSH Agriculture, Education, Healthcare, Impact NBFC, Inclusive Finance, Social Infrastructure Monitoring progress and review of portfolio • FY 18 : 1.72% of Advances • FY 18 : 33.81% of Advances
• FY 19 : 2.25% of Advances • FY 19 : 38.67% of Advances
• FY 20* : 2.80% of Advances • FY 20 *: 37.80% of Advances * Third Party Verification WIP
Finance Verification by a Third Party Our funding partners in Sustainable Finance • Multilateral Agencies
• Domestic developmental financial institutions 13 Sustainable Sustainable 2. ESMS Policy
The primary objective of IndusInd’s Environment and Social Management System (ESMS) is to mainstream environmental and social considerations into business activities, to safe guard our investments from credit and reputational risk.
Managing the Impact of our Investments Align with external stakeholders
Understanding the Environment & (Investors, Multilateral Agency lenders’ Social risks present in ourLorem lending Ipsum Lorem Ipsum requirements) portfolio . Screening proposals againstLorem ipsum dolor sit amet, nibh est. A magnaPromoting Lorem ipsum dolor sit amet, nibh est. A magna maecenas, quam magna nec quis, lorem nunc.. maecenas, quam magna nec quis, lorem nunc.. Exclusion list Environnent & Identifying proposals from the High Negative Impact Industries Social Principles
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Promote Sustainable Banking by Building internal capabilities to their operations. adopting some internationally assess and mitigate EnvironmentLorem & Ipsum Lorem Ipsum recognized (multilateral) lending Social (E&S) risks Lorem ipsum dolor sit amet, nibh est. A magna Lorem ipsum dolor sit amet, nibh est. A standardsmagna maecenas, quam magna nec quis, lorem nunc.. maecenas, quam magna nec quis, lorem nunc..
Building Capabilities Practicing Sustainability
14 Responsible Banking Banking Responsible Sustainable Operations 3. Sustainability 3. in Operations Implementation of ISO 14001 (Environment) & 45001 (Health & Safety) Standards Safety)& 45001 (Health & (Environment)14001 ISO of Implementation Phase Phase Phase Phase 80% of vendors80% ESG compliant - - - III II I
Renewable EnergyGeneration
Vendor Management Solar Solar ATMs&Offices 258 MW 258MW All 37 8 Locations
office
office branches
locations
locations
PAN
in
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in
Mumbai
all
other
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30% reduction 30%reduction from 2017 FY FY FY Timeline
2022 2021 2020 GHG Emission reduction Thin Clients connected to Baseline levels 4,636 MW 4,636MW in FY 20 - - to
22 21 Energy
24
Servers Savings
-
18 Phase I –
work work initiated
15
Employee Engagement 4. Employee Employee 4. • • • • • • Green annual Green launching At aur IndusInd employees, Champions The More Kolkata, across Green
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IndusInd IndusInd Affairs initiatives The Bank's sports have been conferred ‘ Rural budding talent IndusInd More than More than at Wrestling & athletes girl 60 IndusInd 400 Team Indian Cricketthe Blind Support Wrestler 3 were medalswon at 5 athletes rural 55 athletes medals 116 of 12 para who athletes groom & Develop Cricketers Cricketers under under their ‘Contribution tothe National AreasPriority 45 athletes athletes 45 part part of U19
Nagesh Kajal
100 medals medals 100 Girl Power Cricket Blind Para Champions won in several national won national in several
IIS under the the under Jadhav across India India across groomed
trophy isevery played trophy from a deprivedfrom ( in the program in program the Inspire Institute of Sports) Inspire Institute Maharashtra Maharashtra , daughter of daughter , won won this year program Won Won program Khelo Programme
India India Programme Hockey were confirmedwere & drought drought & a smalla &
become role become into National into National
Programme with Cricketwith international international year year two bilateral against bilateral two Nepal series Excellence in Sports team, won team, farmer has bagged 8 medals 8 bagged has farmer
in in prone area of Mann, ofprone Mann, area 12 states 12
for Paralympics 2020 (postponed) forParalympics 2020 models and promote sports among among sports models promote and Association for the Blind in Association in Blind forthe and International champions in International and
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5. Corporate Social Responsibility
CSR Mission ENVIRONMENT To create value for all our stakeholders and emerge as a 'Best-in-Class' Bank that is committed to sustainable economic growth. To ensure that the Bank's business grows consistently and responsibly, Water Other HEALTHCARE EDUCATION SPORTS LIVELIHOOD benefitting those we directly serve while also promoting the well-being of our employees, our natural environment and the community at large. Water Resource Clean Energy Development Solar-based electricity Watershed & Spring- for schools & villages Placement shed management Accessibility to Inclusion of affordable Assisted linked Skill Learning Gender & Training of primary Differently-abled Water Body healthcare youth Rejuvenation Afforestation Lakes, Ponds & Drains
Scholarships Excellence in Village Access to Safe Cancer Care for Excellence Sports Entrepreneurs
Drinking Water Waste Management hip
Water ATMs
Journey so far
2912 million 1100 2.5 lakh >3,000 1 Lakh liter MTCO2e Beneficiaries 1.3 lakhs 595 Water Storage from Youths skilled Trees Reduction per Students Sports persons Capacity HealthCare & employed annum Created programs
17 Corporate Social Responsibility Social Corporate Disclaimer
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Note: All financial numbers in the presentation are from Audited Financials or Limited Reviewed financials or based on Management estimates.
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