Solution Provided:

• Mapped the key business verticals susceptible to ESG Risks.
• Created draft framework for major lending portfolios in alignment with World Bank, IFC, Equator Principle, UN Principles and MoEFCC guidelines.
• Defined key lending limits with respective business verticals and Integrated lending guidelines to KYC process.
• Mapped & integrated Physical & Systemic Risks of ESG lending
• Phase I will be integration only. Followed by ESG rating of portfolios to define healthy lending versus risky lending. Risk mitigation plan will be part of lending guidelines.

Impact :

• ESG risk is integrated into lending portfolios. ESG lending score provides insight into probable ESG risks.
• Enabled internal ESIA (Environment & Social Impact Assessment) for Lending.