State Bank of India (SBI), the country’s largest lender, has drawn up plans to measure the carbon footprint of its Rs 33 trillion loan portfolio at the account level. The initiative is aimed at mitigating climate risks and providing sustainable financing.
The lender will begin with an assessment of the carbon impact of its loans to large enterprises. These companies usually have formal policies and commitments for climate risks and sustainability. However, the bank will not just rely on the submissions made by such customers, but will do due diligence regarding steps taken on ground for climate and carbon risk goals, a senior executive of the bank told Business Standard, requesting anonymity.
The ambit of carbon footprint assessment would be expanded