HOW PREPARED ARE Indian banks to tackle climate-related risks? Well, the journey has just begun with the generation of data of risks posed by climate change, and offerings like green bonds and green fixed deposits. Still, the bottom line is that banks need to hasten their actions to mitigate climate-related risks to their operations.
An assessment of 34 major Indian banks with a combined market capitalisation of ₹29.5 lakh crore in FY22 found that India’s public sector banks are more exposed to climate risk than their private rivals. That’s because they are major lenders to the energy (conventional), mining, and metal sectors. Climate Risk Horizons (CRH), a think tank working with financial institutions to prepare them for climate-related risks, released the biennial assessment in August 2023, the second in the series.
On a positive note, Indian banks have started prioritising lending to green projects through special products; some are measuring the emissions of projects they have financed, developing tools and assessment frameworks for climate risks in their portfolio, and considering a policy to exclude carbon-intensive projects.
But is that enough?
Rama Patel, Senior Director and Chief Ratings Officer at CRISIL ESG Ratings and Analytics Ltd, says banks are beginning to take steps to address climate change risks, and integrating them into operations will help banks contribute to building a more sustainable and resilient financial sector in India.
For their part, financial sector regulators, too, have made climate risk assessment a priority. The Reserve Bank of India (RBI) introduced a draft disclosure framework on Climate-related Financial Risks, 2024, in February that applies to all entities regulated by it.
Bu hikaye Business Today India dergisinin June 23, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Today India dergisinin June 23, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
The EV Craze
The country’s growing luxury car market is seeing a shift with environmentally-conscious consumers betting on electric vehicles as a sustainable travel option. Though just 6%, the share of EVs in the luxury segment is rising rapidly
The Storage Boom
Data centres are being built at a frenetic pace in india as companies scramble to meet the ballooning demand from mobile phone users and firms adopting al. Can the country’s energy infrastructure keep up?
India Beckons
Owing to rising incomes in India and overall wealth expansion, luxury brands are wooing the country like never before
The Pearls of The Sea
Caviar, that rare food, is considered the epitome of fine dining. Here is everything that you need to know about it
66.Brand persona should define the core"
I’d say this was a strategic pivot. We had an iconic brand, but had, over time, evolved into diversified lines of businesses that could no longer be represented within the confines of our ‘name’.
Unwind in Style
Here is acomprehensive list of top tech picks that help you unwind by blending perfection in performance with luxury
A Lifelong Affair with Inspiration
In my art journey, the diversity of my acquisitions mirrored the expanding horizons of my understanding of art
Make it Bubbly
Champagne is much more than just a symbol of celebration and success. Know about its nuances beyond the bubbles
Palatial Splendour
Buoyed by renewed demand, sales of the glitzy mansions of the ultra-rich are surging like never before. Real estate majors are looking to capitalise on this by launching luxury offerings in record numbers
Of Beaches and Cream
GianChand Single Malt Whisky
