E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
  • Need Help?

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

What Closing Costs Do Home Buyers Have?

February 25, 2023

What Is Realtek HD Audio Manager

February 2, 2023

A Basic Guide To Cell Tower Leasing

February 2, 2023
Facebook Twitter Instagram
E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
  • Need Help?
Facebook Twitter Instagram
E Amazings
You are at:Home»Business»RBI survey finds engagement of banks’ board-level management on environment issues inadequate
Business

RBI survey finds engagement of banks’ board-level management on environment issues inadequate

By July 27, 2022No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter Pinterest WhatsApp Email

[ad_1]

A Reserve Bank survey has found that engagement of top management in banks on issues concerning climate risk and sustainable finance is “inadequate” and the lenders need to scale up initiatives on environmental matters.

Climate risk and sustainable finance has caught the attention of regulators, national authorities and supra-national authorities across the world.

The Intergovernmental Panel on Climate Change (IPCC) Report of August 2021 highlighted the changes being observed in the Earth’s climate in every region across the whole climate system.

The Survey on Climate Risk and Sustainable Finance conducted in January this year, covered 34 leading scheduled commercial banks, comprising 12 public sector banks, 16 private sector banks and 6 leading foreign banks in India, the RBI said in a statement on Wednesday.

“The responses indicate that although banks have begun taking steps in the area of climate risk and sustainable finance, there remains a need for concerted effort and further action in this regard,” it said.

As per the findings, board-level engagement on climate risk and sustainable finance is inadequate and for about a third of the banks that were surveyed, responsibility for overseeing initiatives related to climate risk and sustainability was yet to be assigned.

Furthermore, only a few banks have included climate risk, sustainability, environmental, social and governance (ESG) related Key Performance Indicators (KPIs) in the performance evaluation of their top management.

“A majority of the banks did not have a separate business unit or vertical for sustainability and ESG-related initiatives,” it said.

The RBI said almost all the surveyed banks recognised the urgency of the issue, and most of them considered climate-related financial risks to be a material threat to their business.

Further, most of the surveyed banks have decided to gradually reduce their exposure to high-carbon emitting/polluting businesses in the coming years.

A few banks have either mobilised new capital to scale up green lending and investment or set a target for incremental lending and investment for sustainable finance. Most banks have launched a few loan products to tap the opportunities from climate change.

Also, a few banks have launched green deposits to scale up lending to environment-friendly businesses.

The survey also noted that a majority of the banks have not aligned their climate-related financial disclosures with any internationally accepted framework.

The RBI stressed that banks need to put in place a mechanism at either the board or top management level for overseeing and scaling up initiatives relating to climate risk and sustainability.

“They could consider including KPIs on climate risk, sustainability and ESG as a part of the performance evaluation of their top management,” it said.

It also said that banks could consider mobilising new capital to scale up green lending and investment or set a target for incremental lending and investment for sustainable finance.

Banks, the RBI suggested, could come out with a strategy to reduce emissions from their own operations.

In line with India’s commitment at the COP26 Summit, banks may also consider working on a timeline to move towards net-zero emissions.

“The feedback from the survey will help in shaping the regulatory and supervisory approach of the RBI to climate risk and sustainable finance,” the central bank said.

In May 2021, the RBI set up a Sustainable Finance Group (SFG) to lead the efforts and regulatory initiatives in the area of climate risk and sustainable finance.



[ad_2]

Source link

Related Posts

Air Duct Repair 101: Everything You Need To Know

By Corbin BowenFebruary 2, 2023

Advantage LIC? How Budget Insurance Amendment Bill may benefit the PSU insurance giant

By January 5, 2023

LIC offering multiple benefits on premium payment with co-branded credit cards with Axis Bank: Check features, offer

By January 5, 2023

Foreign universities will need UGC’s nod to set up campuses in India

By January 5, 2023
Add A Comment

Comments are closed.

Our Picks

What Closing Costs Do Home Buyers Have?

By Corbin BowenFebruary 25, 2023

What Is Realtek HD Audio Manager

By Corbin BowenFebruary 2, 2023

A Basic Guide To Cell Tower Leasing

By Corbin BowenFebruary 2, 2023
Recent Posts
  • What Closing Costs Do Home Buyers Have? February 25, 2023
  • What Is Realtek HD Audio Manager February 2, 2023
  • A Basic Guide To Cell Tower Leasing February 2, 2023
  • Air Duct Repair 101: Everything You Need To Know February 2, 2023
  • Rashid Khan: A Nightmare For Every Batsmen January 18, 2023
  • Advantage LIC? How Budget Insurance Amendment Bill may benefit the PSU insurance giant January 5, 2023
  • The Flight Of The Dremel January 5, 2023
Archives
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • September 2021
Facebook Twitter Instagram Pinterest TikTok
© 2022 E Amazings - All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.