HDFC Bank announced plans to become carbon neutral by 2031-32. As part of this initiative, the Bank is looking at reducing its emissions, energy, and water consumption. The Bank will continue to incorporate and scale up the use of renewable energy in its operations.
As part of its ESG strategy, the Bank will focus on providing lower-interest loans for green products such as electric automobiles and incorporating ESG scores into lending decisions. The Bank is also developing a framework for green bond issuance. The bank has a three-pronged strategy to achieve its objective to become carbon neutral: Reduce consumption, transition to renewable energy, and offset carbon footprint.
Following initiatives as part of this strategy: Reducing absolute emissions and energy consumption in accordance with current CO2 emissions of 315,583 MT, increasing the capacity of rooftop solar in large offices, converting 50% of overall electrical supply to renewable energy, creating business environment that is free of single-use plastic, planting a total of 25 million trees and reducing water consumption by 30%.
Ashima Bhat, Group Head - CSR, Business Finance and Strategy, Administration, and Infrastructure, HDFC Bank. “Through this effort, we are supporting the country’s commitment in this direction. The broad strategy is in place and going forward we will fine tune it and introduce new measures if necessary. As a responsible corporate citizen, HDFC Bank is fully committed to help India mitigate the effects of climate change as well as help the country meet its international commitments under the Paris agreement.”