ESAF SMALL FINANCE BANK SCORES HIGH IN ESG ASSESSMENT
ESAF Small Finance Bank Ltd has achieved an impressive score of 71 in an ESG assessment conducted by CareEdge Research. By surpassing the industry average of 59.8 the Bank has showcased that its environmental, social and governance practices are set at a higher standard than the industry average. Ever since its establishment, the Bank has embraced the concept of ESG at its core.
City Air News
Jul 19, 2023 06:43
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Kochi: ESAF Small Finance Bank Ltd has achieved an impressive score of 71 in an ESG assessment conducted by CareEdge Research. By surpassing the industry average of 59.8 the Bank has showcased that its environmental, social and governance practices are set at a higher standard than the industry average. Ever since its establishment, the Bank has embraced the concept of ESG at its core.
In terms of the environmental pillar, the Bank received a score of 62% pursuant to its commitment to green finance and environment conscious operations. Additionally, the Bank has demonstrated a decisive ESG roadmap in Sustainable Development Goal initiatives, foster local sustainable economic growth, ensure food security, foster energy security, and align with net-zero targets through its commitment to green finance and environmental consciousness.
For the social pillar, the Bank achieved a score of 68% by demonstrating healthy labour management practices, including the implementation of various policies that embody international and national human rights standard. Furthermore, the Bank's corporate social responsibility contribution exceeded the government-mandated requirement of 2% of a Company’s average net profits made during the immediately preceding three financial years by approving the contribution of up to 5%.
In terms of the governance pillar, the Bank attained a score of 76% due to its board governance and disclosure practices aligning with leading governance practices. On a grading scale of 1 to 7, the Bank secured a score of 3, reflecting its commitment to strong governance principles.
On receiving the report, Kadambelil Paul Thomas, the Managing Director and Chief Executive Officer, ESAF Small Finance Bank, commented, “With the increasingly evident impact of climate change and associated risks, the significance of ESG ratings has grown exponentially. I express my heartfelt gratitude to our employees and stakeholders for their invaluable contributions to achieving this coveted landmark. ESG principles have been embedded in ESAF's social business strategy, with the triple bottom line approach of People, Planet, and Prosperity as our guiding principle.”
“Despite operating in vulnerable and remote locations, the Bank could successfully introduce digitalised onboarding and e-signature processes for microloan disbursals, resulting in notable reduction in paperwork and water usage,” he added. He concluded by reiterating the organisation’s approach to operational efficiency and leveraging technology for the benefit of the customers and the environment.
