Mumbai, India: YES BANK announced today that it has been awarded an ‘A-’ rating by the Carbon Disclosure Project (CDP) for its 2023 Climate Change disclosures. This prestigious recognition places YES BANK as the highest rated Indian Bank in this category for the second consecutive year, solidifying its leadership in climate action within the Indian banking landscape.
CDP’s annual assessment evaluates global organisations across various sectors, focusing on their climate-related performance. The Bank earned the ‘Leadership Band’ (A/ A-) in 9 out of 12 climate-related disclosure categories. It excelled in areas like climate governance, emissions reporting (Scope 1, 2, and 3), emission reduction initiatives, and effective risk management processes. Notably, YES BANK has been an active participant in CDP’s climate disclosures since 2010, demonstrating a long-standing commitment to environmental responsibility.
The broader context of YES BANK’s achievement becomes evident considering the scale of CDP’s influence – over 18,700 companies and more than 740 institutions with assets worth over USD 130 trillion use CDP data for informed decision-making. By meeting high standards in climate-related disclosures, YES BANK not only ensures its resilience and adaptability in a changing world but also sets a benchmark for other institutions in the financial sector.
Commenting on this achievement, Mr. Niranjan Banodkar, Chief Financial Officer and Head – Sustainable Finance, YES BANK, said, “The leadership rating by CDP is a reflection of the Bank’s resolute focus to treat climate readiness as a significant pillar of our business strategy. YES BANK remains committed to playing a leadership role in supporting and accelerating the transition to a climate resilient economy and continues to make concerted efforts to integrate climate considerations into its business, and transparently disclose its climate performance to all stakeholders.”
Speaking on this announcement, Ms. Sherry Madera, Chief Executive Officer at CDP, said: “With over 23,000 businesses disclosing through CDP this year, it is clear that sustainability – and the data that underpins it – is not a ‘nice to have’, but an essential part of long-term success in the business community that is showing no sign of slowing down – nor should it. Disclosure works, and today we should take a short pause to celebrate the dedication to transparency and accountability shown by YES BANK reporting through CDP this year. A 1.5-degree future is still possible if the global community works in lockstep to get there. By sharing their environmental data with CDP, YES BANK is continuing, an environmental journey that will contribute to keeping that future in sight.”
YES BANK has taken significant steps to integrate climate considerations into its business strategy, some of which are detailed below:
The Bank has strengthened its climate governance by constituting a board level, Corporate Social Responsibility (CSR) and Environmental Social Governance (ESG) Committee, in addition to a management level Sustainability Council, chaired by the MD & CEO.
It has instituted domain-specific climate related KPIs into the goal sheets of the top management to ensure that climate action is embedded into the Bank’s decision-making process.
The Bank recognizes the significance of climate risk and was the first Bank in India to enhance its sustainability disclosures in line with the Taskforce on Climate related Financial Disclosures (TCFD) recommendations
YES BANK is the first Indian Bank to measure and report financed emissions of its electricity generation loan exposure and develop targets to align with The Science Based Targets initiative (SBTi) well-below 2°C scenario
It is the first Indian Bank to be a Founding Signatory to UN Environment Programme Finance Initiative (UNEP FI) Principles for Responsible Banking, striving to align its business strategy with the Paris Climate Agreement
The Bank has announced a target to achieve net zero emissions from its operations by 2030 and has begun sourcing 100% renewable energy to power its key facilities such as its corporate and registered office – YES BANK House in Mumbai, Maharashtra
The Bank has adopted an Environmental Management Policy and has instituted an ISO 14001:2015 compliant Environment Management System (EMS) designed to conserve the usage of natural resources, improve key resource efficiencies, and reduce its carbon footprint. YES BANK is the first Bank globally with an ISO 14001:2015 certified EMS covering 1,186 facilities
YES BANK has also developed and brought to market a number of green financial instruments such as India’s first Green Bond in 2015 and India’s first Green Fixed Deposit in 2018. The Bank continues to explore newer opportunities and mobilize finance towards climate aligned sectors, including renewable energy, roof top solar electric mobility, climate-smart and sustainable agriculture, among others.
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