India’s largest banks have begun to audit their own and borrowers’ carbon footprint as they try to mitigate financial risks amid growing pressure from regulators and investors to better align their ESG reporting with global norms, a dozen sources told Reuters.
The South Asian nation is the world’s third-highest greenhouse gas polluter and has set a goal of reaching net zero emissions by 2070.
India’s financial sector lags other major economies in its reporting on Scope 3 emissions, or lending-related emissions – the biggest contributor to the financial sector’s carbon footprint.
About 25%-35% of Indian bank loans are directly exposed to carbon-intensive sectors, including coal mining and diesel intensive transportation, according to rating agency Moody’s.
Source: Zawya
