India – SBFN Tool

SBFN Member Since:

2016

Member Organisations

Indian Banks Association

Download Country Progress Report

2019 Comparison

2021 Comparison

Progress Against sub Pillars

Framework Documents

Country	Policies/ Principles/ Guidelines	Year	Issuer
India	Practical Actions to Finance India’s Sustainable Recovery	2021	India-UK Sustainable Finance Working Group
India	Business Responsibility And Sustainability Reporting By Listed Entities	2020	Securities & Exchange Board of India
India	National Voluntary Guidelines for Responsible Financing	2017	Indian Banks’ Association
India	National Guidelines on Responsible Business Conduct	2019	Ministry of Corporate Affairs
India	Report on Trend and Progress of Banking in India	2019	Reserve Bank of India
India	Guidance Document on ESG Disclosures	2018	Pension Fund Regulatory and Development Authority
India	Disclosure Requirements for Issuance and Listing Green Bonds	2017	Securities & Exchange Board of India

Pillar 1 - ESG Integration - Strategic Alignment

National Framework

P 1.1 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration of environmental, social, and governance (ESG) risks and performance?

Yes

Source Reference Detail

–

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

–

P 1.2 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration of environmental, social, and governance (ESG) risks and performance?

Yes

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 1 - ESG Integration - Strategic Alignment

Alignment with International Goals & Standards

P 1.3 – Does the Framework make reference to international sustainable development frameworks or goals?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 1.4 – Does the Framework make reference to established international ESG risk management standards and principles for FIs??

Yes

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 1 - ESG Integration - Strategic Alignment

Alignment with national goals & strategies

P 1.5 – Does the Framework make reference to specific national development objectives, plans, policies, goals, or targets?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 1.6 – Does any cooperation exist between agencies or between the regulator and industry association with respect to policy design and/or implementation related to ESG integration?

Yes

Source Reference Detail

The Guidelines formulation process finds its genesis in the Working Group formed under the convener-ship of the Indian Banks’ Association (IBA). This was a culmination of long engagement and dialogue with financial institutions supported by the joint initiative undertaken by GIZ and SIDBI under the bilateral cooperation project on Responsible Enterprise Finance.The Working Group brought together a cross-section of public and private sector banks, think tanks and implementing agencies. A core group within the Working Group called the Guidelines Drafting Group was tasked with the formulation of the Guidelines for Responsible Financing, Implementation and Disclosure Framework, and develop a roll-out strategy.

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

Page 13

P 1.7 – Does any inter-agency data sharing currently exist related to ESG integration by FIs?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 1 - ESG Integration - Regulatory and Industry Association Actions

Overall Approach & Strategy

P 1.8 – Does the Framework provide guidance on the role of the regulator or industry association with regard to assessing and managing ESG risk and performance in the financial sector?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 1.9 – Has the regulator or industry association undertaken market assessment to identify systemic ESG risks through analysis of the portfolios of supervised entities/members and published the results?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 1 - ESG Integration - Regulatory and Industry Association Actions

Technical Guidance

P 1.10 – Does the Framework provide technical guidance or tools to support implementation of ESG risk and performance management by the financial sector?

Yes

Source Reference Detail

–

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

Chapter 2 Implementation Guidance

Pillar 1 - ESG Integration - Regulatory and Industry Association Actions

Supervisory Activities & incentives

P 1.11 – Is the implementation of the Framework regularly monitored and/or information regularly collected from FIs by the regulator and/or industry association?

Yes

Source Reference Detail

Assess, measure and monitor the FI’s progress in managing ESG issues and proactively and regularly disclose this information publicly via relevant disclosure or reporting frameworks

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

Page 23

P 1.12 – Does the regulator or industry association provide any financial or non-financial incentives for FIs to manage ESG performance as part of the Framework?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 1.13 – Does the regulator or industry association apply any disincentives/penalties for non-compliance by FIs in terms of expectations from the regulator and/or industry association related to ESG risk management as part of the Framework?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 1 - ESG Integration - Regulatory and Industry Association Actions

Tracking & Aggregated Disclosure

P 1.14 – Has the regulator or industry association established a data collection approach and database to track or regularly publish data related to ESG integration by FIs as part of the Framework?

Yes

Source Reference Detail

The Boards of an FI should integrate ESG oversight function in anappropriate sub-committee of the Board

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

Page 23 Point 5

Pillar 1 - ESG Integration - Expectations of FI Actions

Strategy & Governance

P 1.15 – Does the Framework require/ask the FI’s board of directors (or highest governing body) to approve an ESRM and/or ESG integration strategy, and to supervise its implementation?

Yes

Source Reference Detail

The Boards of an FI should integrate ESG oversight function in anappropriate sub-committee of the Board

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

Page 3

Pillar 1 - ESG Integration - Expectations of FI Actions

Organizational Structure & Capacity Building

P 1.16 – Does the Framework require/ask FIs to allocate resources/budget commensurate with portfolio ESG risks and define roles and responsibilities for ESG integration within the organization?

Yes

Source Reference Detail

The principle emphasises that financial institutions should develop sound governance structures and processes, with clear roles and responsibilities, to oversee and operationalise environmental and social performance of their business activities and that of its clients.

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

Page 10 ii

P 1.17 – Does the Framework require/ask FIs to develop and maintain the ESG expertise and capacity of staff commensurate with portfolio ESG risks through regular training and learning?

Yes

Source Reference Detail

Additionally, the Guidelines envisage that while capacity building needs within financial institutions may vary, it will be essential to scale up awareness efforts, and training programmes for personnel across the sector to prepare them and mainstream the ESG way of doing business through greater cooperation and collaboration among financial institutions.

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

Page 7

P 1.18 – Does the Framework require/ask FIs to create incentives for managers to reduce the ESG risk-level of the portfolio over a specified timeframe?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 1 - ESG Integration - Expectations of FI Actions

Policies & Procedures

P 1.19 – Does the Framework require/ask FIs to develop policies and procedures to identify, classify, measure, monitor, and manage ESG risks and performance throughout the financing cycle at the client level and/or the transaction/project level?

Yes

Source Reference Detail

Conduct due diligence based on ESG policy of the institutionadhering to the eight principles of these Guidelines

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

Page 4

P 1.20 – Does the Framework require/ask FIs to undertake a regular review and monitoring of ESG risk exposure at aggregate portfolio level?

Yes

Source Reference Detail

The disclosure questions enable the sector to report on itsoperational and portfolio practices pertaining to ESG, with usefulinformation.

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

Page 37

P 1.21 – Does the Framework require/ask FIs to establish and maintain an external inquiry/complaints/grievance mechanism for interested and affected stakeholders in relation to ESG practices?

Yes

Source Reference Detail

Area of Disclosure. iii. Redress of stakeholder complaints.

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

Page 10

Pillar 1 - ESG Integration - Expectations of FI Actions

Tracking, Reporting & Disclosure

P 1.22 – Does the Framework require/ask FIs to report ESG risks and performance to the regulator or industry association?

Yes

Source Reference Detail

–

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

Principle 8 Disclosure

P 1.23 – Does the Framework require/ask FIs to report on ESG integration publicly?

Yes

Source Reference Detail

–

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

Principle 8 Disclosure

P 1.24 – Does the Framework require/ask FIs to track credit risk (e.g. loan defaults) and/or financial returns in relation to ESG risk level?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 2 - Climate Risk Management - Strategic Alignment

National Framework

P 2.25 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration and management of climate risks and their impact in the national economy?

Yes

Source Reference Detail

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

Page 11 Principle 2

P 2.26 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration and management of climate risks and their impact in the national economy?

Yes

Source Reference Detail

Securities Exchange Board of India’s Circular on Business Responsibility and Sustainability Reporting (2021) by Listed Entities disclosure and reporting approach (Business Responsibility and Sustainability Report, BSRS), references climate risk and Scope 1, 2, and 3 greenhouse gas emissions (Annex 2, BRSR Reporting Format), and notes that BSRS reporting can be cross referenced to other sustainability reporting, including frameworks such as GRI, SASB, and TCFD. The National Guidelines on Responsible Business Conduct (NGRBC) references the SEBI reporting requirement (Annex 3, Page 38). (SEBI Circular: https://www.sebi.gov.in/media/press-releases/may-2021/sebi-issues-circular-on-business-responsibility-and-sustainability-reporting-by-listed-entities-_50097.html) . SEBI Guidelines Annex 2: https://www.sebi.gov.in/sebi_data/commondocs/may-2021/Business%20responsibility%20and%20sustainability%20reporting%20by%20listed%20entitiesAnnexure2_p.PDF .

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

Pillar 2 - Climate Risk Management - Strategic Alignment

Alignment with International Goals & Standards

P 2.27 – Does the Framework make reference to international agreements or frameworks to address climate?

Yes

Source Reference Detail

National Guidelines on Responsible Business Conduct (NGRBC) Principle 6, page 11, makes reference to the Paris Agreement, Sustainable Development Goals, and the Nationally Determined Contribution (NDC).

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

P 2.28 – Does the Framework recognize or align with established regional or international good practice for climate risk management and disclosure by FIs?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 2 - Climate Risk Management - Strategic Alignment

Alignment with National Goals & Strategies

P 2.29 – Has the regulator or industry association aligned the Framework with national goals to address climate change in line with the country’s Nationally Determined Contributions (NDCs) to the Paris Agreement?

Yes

Source Reference Detail

Source Reference Document

National Voluntary Guideline for Responsible Financing

Source Reference Description

–

P 2.30 – Does any cooperation exist between agencies, or between government and industry association, with respect to policy design or implementation related to climate risk management?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 2.31 – Does any inter-agency data sharing currently exist related to climate risk management by FIs?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions

Overall Approach & Strategy

P 2.32 – Has the regulator or industry association undertaken research on historical impacts to the economy and financial sector from climate change, and/or future expected impacts resulting from physical and transition climate risks?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 2.33 -Does the Framework identify key sources of GHG emissions – such as in particular sectors – as priorities in the proactive management of climate risks by the financial sector?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 2.34 – Does the Framework incorporate the conservation/restoration of natural carbon sinks (such as oceans, forests, mangroves, grasslands, and soils) as an important part of reducing climate change risks? (e.g., through guidelines, scenario analysis, targets, or incentives for FIs)

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 2.35 – Has the regulator or industry association developed an internal strategy to address climate risk, and/or embedded climate risk management into its governance, organizational structures, and budget as part of the Framework?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 2.36 – Has the regulator or industry association undertaken any activities to expand and deepen analytical understanding of national and/or cross-border physical and transition climate risks, and to raise awareness as to how these risks may transmit to, and impact, the financial sector?

Yes

Source Reference Detail

The Reserve Bank of India included discussion of TCFD and climate risks in the context of green finance in the 2018-2019 Report on Trend and Progress of Banking in India, Section 5.5, and Box II.1. In April 2020, RBI issued a Bulletin referencing the study Climate Change: Macroeconomic Impact and Policy Options for Mitigating Risks which highlights the rising risks from climate change to the macroeconomic outlook of economies around the world and also reviews the available risk mitigating policy options. An analysis of major weather-related events in India since 1901 shows that the incidence of extreme events has increased in the last two decades, with rising average temperature levels and more volatile precipitation patterns.

Source Reference Document

Report on Trend and Progress of Banking in India

Source Reference Description

Refert to description

Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions

Technical Guidance

P 2.37 – Has the regulator or industry association developed risk assessment approaches, methodologies, or tools to understand and assess the financial sector’s exposure to climate risk as part of the Framework?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions

Supervisory Activities & Incentives

P 2.38 – As part of the Framework, has the regulator clarified supervisory expectations with regard to climate risk management by FIs, including consideration of international good practices?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 2.39 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 2.40 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?

Yes

Source Reference Detail

Securities Exchange Board of India’s Circular on Business Responsibility and Sustainability Reporting (2021) by Listed Entities disclosure and reporting approach (Business Responsibility and Sustainability Report, BSRS), references climate risk and Scope 1, 2, and 3 greenhouse gas emissions (Annex 2, BRSR Reporting Format), and notes that BSRS reporting can be cross referenced to other sustainability reporting, including frameworks such as GRI, SASB, and TCFD. The National Guidelines on Responsible Business Conduct (NGRBC) references the SEBI reporting requirement (Annex 3, Page 38). As part of future elaboration of climate risk in ESG integration, the National Voluntary Guideline for Responsible Financing – Indian Banks’ Association (Page 23). “Assess, measure and monitor the FI’s progress in managing ESG issues and proactively and regularly disclose this information publicly via relevant disclosure or reporting frameworks”.

Source Reference Document

Business Responsibility and Sustainability ReportingNational Guidelines on Responsible Business Conduct

Source Reference Description

Refer to description

P 2.41 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions

Tracking & Aggregated Disclosure

P 2.42 – Does the regulator or industry association regularly collect and/or report market-level and/or FI-level data on climate-related financial sector risks as part of the Framework?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

Pillar 2 - Climate Risk Management - Expectations of FI Actions

Strategy & Governance

P 2.43 – Does the Framework require/ask FIs to establish a strategy for climate risk management with responsibility at the board of director level (or highest governing body)?

Yes

Source Reference Detail

The foundation for future incorporation of climate risk elements includes: National Guidelines on Responsible Business Conduct (NGRBC) Principle 6: “Businesses should focus on addressing climate change through development of both mitigation and adaptation measures, and build climate resilience and in line with India’s Nationally Determined Contributions to the Paris Climate Change Agreement and the National/State Action Plans on Climate Change.” and Principle 6 Articles 1 and 2 related to governance. National Voluntary Guideline for Responsible Financing (NVGRF) Principle 2 on ESG risk management and Principle 4 references climate change considerations and impacts as part of FIs’ lines of credit and investment activites including related to climate mitigation and adaptation. NVGRF Page 3. “The Boards of an FI should integrate ESG oversight function in an appropriate sub-committee of the Board.” and Page 11: “Board oversight of ESG Risk Assessment framework for operational and portfolio performance”. In addition, NGVRF, Chapter 2, “Integration” principle, pages 21-22. SEBI Guidelines (Annex 2), Section A.24 (Page 6) “Overview of the entity’s material responsible business conduct and sustainability issues; Section B.7 (page 7) “Statement by director responsible for the report for to highlight ESG issues”; Section B.9 (page 8)” Does the entity have a specified Committee of the Board/ Director responsible for decision making on sustainability related issues”; and ESG reporting elements Principle 6 (page 22).

Source Reference Document

National Guidelines on Responsible Business ConductNational Voluntary Guidelines for Responsible Financing

Source Reference Description

Refer to description

Pillar 2 - Climate Risk Management - Expectations of FI Actions

Organizational Structure & Capacity Building

P 2.44 – Does the Framework require/ask FIs to define the roles and responsibilities and related capacities of the FI’s senior management and operational staff in identifying, assessing, and managing climate-related financial risks and opportunities?

Yes

Source Reference Detail

The foundation for future incorporation of climate risk elements includes: National Guidelines on Responsible Business Conduct (NGRBC) Principle 6: “Businesses should focus on addressing climate change through development of both mitigation and adaptation measures, and build climate resilience and in line with India’s Nationally Determined Contributions to the Paris Climate Change Agreement and the National/State Action Plans on Climate Change.” and Principle 6 Articles 1 and 2 related to governance. National Voluntary Guideline for Responsible Financing (NVGRF) Principle 2 on ESG risk management and Principle 4 references climate change considerations and impacts as part of FIs’ lines of credit and investment activites including related to climate mitigation and adaptation. NVGRF Page 7. “Additionally, the Guidelines envisage that while capacity building needs within financial institutions may vary, it will be essential to scale up awareness efforts, and training programmes for personnel across the sector to prepare them and mainstream the ESG way of doing business through greater cooperation and collaboration among financial institutions.” In addition, NGVRF, Chapter 2, “Integration” principle, pages 21-22. SEBI Guidelines (Annex 2), Section A.24 (Page 6) “Overview of the entity’s material responsible business conduct and sustainability issues; Section B.7 (page 7) “Statement by director responsible for the report for to highlight ESG issues”; Section B.9 (page 8)” Does the entity have a specified Committee of the Board/ Director responsible for decision making on sustainability related issues”; and ESG reporting elements Principle 6 (page 22).

Source Reference Document

National Guidelines on Responsible Business ConductNational Voluntary Guidelines for Responsible Financing

Source Reference Description

–

Pillar 2 - Climate Risk Management - Expectations of FI Actions

Policies & Procedures

P 2.45 – Does the Framework require/ask FIs to expand existing risk management processes to identify, measure, monitor, and manage/mitigate financial risks from climate change?

Yes

Source Reference Detail

The foundation for future incorporation of climate risk elements includes: National Guidelines on Responsible Business Conduct (NGRBC) Principle 6: “Businesses should focus on addressing climate change through development of both mitigation and adaptation measures, and build climate resilience and in line with India’s Nationally Determined Contributions to the Paris Climate Change Agreement and the National/State Action Plans on Climate Change.” and Principle 6 Articles 1 and 2 related to governance. National Voluntary Guideline for Responsible Financing (NVGRF) Principle 2 on ESG risk management and Principle 4 references climate change considerations and impacts as part of FIs’ lines of credit and investment activites including related to climate mitigation and adaptation. NVGRF Page 4. “Conduct due diligence based on ESG policy of the institution adhering to the eight principles of these Guidelines” and Page 11: “The principle emphasises that financial institutions should set up robust systems and processes that enable a thorough risk assessment based on environmental, social and governance parameters going beyond compliance requirements, and adhere to good practices.”. In addition, NGVRF, Chapter 2, “Integration” principle, pages 21-22. Securities Exchange Board of India’s Circular on Business Responsibility and Sustainability Reporting (2021) by Listed Entities disclosure and reporting approach (Business Responsibility and Sustainability Report, BSRS), references climate risk and Scope 1, 2, and 3 greenhouse gas emissions (Annex 2, BRSR Reporting Format), and notes that BSRS reporting can be cross referenced to other sustainability reporting, including frameworks such as GRI, SASB, and TCFD. SEBI Guidelines (Annex 2), Section A.24 (Page 6) “Overview of the entity’s material responsible business conduct and sustainability issues; Section B.7 (page 7) “Statement by director responsible for the report for to highlight ESG issues”; Section B.9 (page 8)” Does the entity have a specified Committee of the Board/ Director responsible for decision making on sustainability related issues”; and ESG reporting elements Principle 6 (page 22).

Source Reference Document

National Guidelines on Responsible Business ConductNational Voluntary Guidelines for Responsible Financing

Source Reference Description

Page 25

Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions

Tracking, reporting & disclosure

P 2.46 – Does the Framework require/ask FIs to report on their overall approaches to climate risk management in line with international good practices (e.g., TCFD), or establish a timeline by which FIs should begin to align their reporting with such practices?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 2.47 – Does the Framework require/ask FIs to identify, measure, and report on exposure to sectors which are vulnerable to transition risk and physical risk?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 2.48 – Does the Framework require/ask FIs to adopt and report on performance targets to reduce portfolio greenhouse gas (GHG) emissions on a regular basis?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 2.49 – Does the Framework require/ask FIs to adopt and report on performance targets to reduce exposure to climate change risks at the portfolio level on a regular basis?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 3 - Financing Sustainability - Strategic Alignment

National Framework

P 3.50 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration of instruments, goals, and standards for financing sustainability, including requirements for ensuring credibility and managing and measuring resulting impacts in the national economy?

Yes

Source Reference Detail

–

Source Reference Document

National Voluntary Guidelines for Responsible Financing

Source Reference Description

–

P 3.51 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration of instruments, goals, and standards for financing sustainability, including requirements for ensuring credibility and managing and measuring resulting impacts in the national economy

Yes

Source Reference Detail

–

Source Reference Document

Disclosure Requirements for Issuance and Listing of Green Bonds, SEBI, 2017

Source Reference Description

–

Pillar 3 - Financing Sustainability - Strategic Alignment

Alignment with International Goals & Standards

P 3.52 – Has the regulator or industry association developed a strategy, regulations, or set of frameworks for stimulating the allocation of capital to sustainable assets, projects, and related sectors in line with global goals, such as the Sustainable Development Goals (SDGs)?

Yes

Source Reference Detail

Take not only national but also global trends,developments and realities and suitably adapt them to raise the bar forfinancial institutions operating in India to deliver them competitiveadvantage as well as higher value to all stakeholders where long-term healthand prosperity of society and the planet is central.

Source Reference Document

National Voluntary Guidelines for Responsible Financing

Source Reference Description

Page 6 Introduction

P 3.53 – Does the Framework recognize and/or align with existing standards, voluntary principles, or market good practices related to sustainable finance instruments?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions

Alignment with national goals & strategies

P 3.54 – Does the Framework enable the achievement of stated national objectives by guiding capital to sectors, assets, and projects that have environmental and social benefits in line with national sustainable development priorities, strategies, targets, and the size of sustainable investment needs, and taking into account the local barriers to scaling-up sustainable finance?

Yes

Source Reference Detail

Takee not only national but also global trends, developments and realities and suitably adapt them to raise the bar for financial institutions operating in India to deliver them competitive advantage as well as higher value to all stakeholders where long-term health
and prosperity of society and the planet is central.

Source Reference Document

National Voluntary Guidelines for Responsible Financing

Source Reference Description

Page 6 Introduction

P 3.55 – Does the Framework enable the achievement of stated national objectives by guiding capital to sectors, assets, and projects that have environmental and social benefits in line with national sustainable development priorities, strategies, targets, and the size of sustainable investment needs, and taking into account the local barriers to scaling-up sustainable finance?

Yes

Source Reference Detail

The Guidelines formulation process finds its genesis in the Working Groupformed under the convener-ship of the Indian Banks’ Association (IBA).This was a culmination of long engagement and dialogue with financialinstitutions supported by the joint initiative undertaken by GIZ and SIDBIunder the bilateral cooperation project on Responsible Enterprise Finance.The Working Group brought together a cross-section of public and privatesector banks, think tanks and implementing agencies. A core group withinthe Working Group called the Guidelines Drafting Group was tasked withthe formulation of the Guidelines for Responsible Financing,Implementation and Disclosure Framework, and develop a roll-out strategy.These Guidelines have been approved and passed by the IBA ManagementCommittee for adoption by banks.

Source Reference Document

National Voluntary Guidelines for Responsible Financing

Source Reference Description

Page 7 Process

P 3.56 – Does any inter-agency data sharing currently exist related to stimulating and monitoring sustainable finance flows?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 3 - Financing Sustainability - Strategic Alignment

Overall Approach & Strategy

P 3.57 – Does the Framework require/ask the regulator or industry association to establish mechanisms to identify and encourage the allocation of capital to sustainable sectors, assets, and projects?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions

Technical Guidance

P 3.58 – Does the Framework require/ask the regulator or industry association to establish mechanisms to identify and encourage the allocation of capital to sustainable sectors, assets, and projects?

Yes

Source Reference Detail

Provides the definition of “green debt securities”

Source Reference Document

Disclosure Requirements for Issuance and Listing of Green Bonds, SEBI, 2017

Source Reference Description

Section 2.1

P 3.59 – Does the Framework provide guidelines for extending green, social or sustainability-focused loans (excluding bonds)?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 3.60 – Does the Framework provide guidelines for issuance of green, social or sustainability bonds?

Yes

Source Reference Detail

Provides the definition of “green debt securities”

Source Reference Document

Disclosure Requirements for Issuance and Listing of Green Bonds, SEBI, 2017

Source Reference Description

–

P 3.61 – Does the Framework require/ask for external party verification to ensure the credibility of sustainability instruments?

Yes

Source Reference Detail

The issuer may appoint an independent third party reviewer/certifier

Source Reference Document

Disclosure Requirements for Issuance and Listing of Green Bonds, SEBI, 2017

Source Reference Description

Section 2.2e

Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions -

Supervisory activities & incentives

P 3.62 – Does the regulator or industry association monitor information reported by FIs related to green/social/sustainability investment, lending, and other instruments to prevent greenwashing and social-washing?

Yes

Source Reference Detail

Assess, measure and monitor the FI’s progress in managing ESG issuesand proactively and regularly disclose this information publicly viarelevant disclosure or reporting frameworks

Source Reference Document

National Voluntary Guidelines for Responsible Financing

Source Reference Description

Page 23 Disclosure

P 3.63 – Are there any financial or non-financial incentives for FIs to develop and grow green, social, or sustainability finance instruments?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions -

Tracking & Aggregated Disclosure

P 3.64 – Does the regulator or industry association collect and/or publish data from FIs or other sources about allocation of capital to green/social/sustainability assets, projects, or sectors?

Yes

Source Reference Detail

Assess, measure and monitor the FI’s progress in managing ESG issuesand proactively and regularly disclose this information publicly viarelevant disclosure or reporting frameworks

Source Reference Document

National Voluntary Guidelines for Responsible Financing

Source Reference Description

Page 23 Disclosure

Pillar 3 - Financing Sustainability - Expectations of FI Actions

Strategy & Governance

P 3.65 – Does the Framework require/ask FIs to establish a strategy, governance, or high-level targets, including at the Board of Directors level, for capital allocation to sustainable assets, projects, or sectors?

Yes

Source Reference Detail

The Boards of an FI should integrate ESG oversight function in anappropriate sub-committee of the Board (e.g. Risk Committee) or createa new committee as deemed fit for mainstreaming these principles inFI’s operations and its subsequent monitoring and review.

Source Reference Document

National Voluntary Guidelines for Responsible Financing

Source Reference Description

Page 3

Pillar 3 - Financing Sustainability - Expectations of FI Actions

Organizational Structure & Capacity Building

P 3.66 – Does the Framework require/ask FIs to define internal staff roles and responsibilities to encourage finance flows to green, social, and/or sustainability-focused investments?

Yes

Source Reference Detail

The principle emphasises that financial institutions should developsound governance structures and processes, with clear roles andresponsibilities, to oversee and operationalise environmental and socialperformance of their business activities and that of its clients.

Source Reference Document

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Source Reference Description

Page 10

P 3.67 – Does the Framework require/ask FIs to develop and maintain internal staff capacity on green, social, or sustainability products through regular training and learning?

Yes

Source Reference Detail

Training on ESG risk managementshould be continually imparted to staff.

Source Reference Document

National Voluntary Guidelines for Responsible Financing

Source Reference Description

Page 25

Pillar 3 - Financing Sustainability - Expectations of FI Actions

Policies & Procedures

P 3.68 – Does the Framework require/ask FIs to put in place policies and procedures for defining, issuing, managing proceeds, tracking performance, and reporting on green, social or sustainability-focused products?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 3.69 – Does the Framework require/ask FIs to appoint an independent external reviewer to confirm that the FI’s internal framework meets the requirements of the recognized national framework and regulations, or aligns to international standards?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 3.70 – Does the Framework require/ask that FIs create incentives for managers to increase sustainable loans or investments in the portfolio?

Source Reference Detail

Source Reference Document

–

Source Reference Description

–

Pillar 3 - Financing Sustainability - Expectations of FI Actions

Tracking, reporting & disclosure

P 3.71 – Does the Framework require/ask FIs to publish annual updates on the performance and impacts of the sustainability instruments in compliance with relevant national and/or international standards?

Yes

Source Reference Detail

Continuous disclosure requirements

Source Reference Document

Disclosure Requirements for Issuance and Listing of Green Bonds, SEBI, 2017

Source Reference Description

Section 2.3

P 3.72 – Does the Framework require/ask FIs to obtain and disclose independent review of metrics reported annually in relation to the social and environmental outcomes and impacts achieved through the sustainability instruments?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 3.73 – Does the Framework require/ask FIs to obtain and disclose independent review of metrics reported annually in relation to the social and environmental outcomes and impacts achieved through the sustainability instruments?

Source Reference Detail

–

Source Reference Document

–

Source Reference Description

–

P 3.74 – Does the Framework require/ask FIs to report to the regulator(s) or industry association(s) on green, social, and/or sustainability bonds or other positive impact investments?

Yes

Source Reference Detail

Environmentally friendly products, servicesand investmentAreas of Disclosurei. Strategy, initiatives and products that address global environmentalissues such as climate change, global warming, etcii. Lines of credit and investment in clean technology, energy efficiency,renewable energy climate mitigation and adaptation projects

Source Reference Document

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Source Reference Description

Pag 13, Principle 4

P 3.75 – Does the Framework require/ask FIs to report publicly on their green, social and sustainability-focused finance activities and positive outcomes or impacts (i.e. not only to the regulator or shareholders)?

Yes

Source Reference Detail

Source Reference Document

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Source Reference Description

Page 13, Principle 4

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