Task Force on Climate-Related Financial Disclosures (TCFD) Index

Task Force on Climate-related Financial Disclosures (TCFD) Index

Section	Recommendation	Summary	Refer Page Number
Governance	a) We describe the Board's oversight of climate-related risks and opportunities	The Bank has a Board-approved ESG Policy which includes the ESG Policy statement, our Vision, our Mission, our ESG Philosophy, the ESG governance structure and key focus areas. The Board has authorised the Risk Committee to oversee the Bank's action plan on various aspects of ESG, external reporting and stakeholder feedback. ESG related areas that are within the purview of other Board Committees continue to be overseen by the respective Committees and updates relevant to ESG in these areas are presented to the Risk Committee. Updates are provided to the Risk Committee twice a year and annually to the Board.	59-64
Governance	b) We describe the management's role in assessing and managing climate related risks and opportunities	Identification and implementation of ESG-related initiatives are undertaken by the ESG Steering Committee comprising senior representatives of various functions within the Bank. The ESG Steering Committee is chaired by the Group CFO. A dedicated team within the Group CFO's span, is directly responsible for formulating and coordinating the Bank’s action plan on ESG and provides regular updates to the ESG Steering Committee.	59-60
Strategy	a) We describe the climate-related risks and opportunities the Bank has identified over the short, medium and long term	Environmental and climate-related risks encompass various risks (credit, market, operational, and legal) arising from the exposure of the Bank to activities that may contribute to or be impacted potentially by climate change, air and water pollution, scarcity of fresh water, biodiversity loss and deforestation. The Bank has in place a Framework for Sustainable Financing to provide guidance on identifying opportunities for green, social, sustainable, and sustainable-linked lending and associated procedures.	61-65
Strategy	b) We describe the impact of climate-related risks and opportunities on the Bank’s financial planning	The Bank conducts climate scenario analysis to quantify the impact of climate-related financial risks and assess the potential impact on capital and provisioning. The output of the exercise has been incorporated in the Bank's financial planning as a part of ICAAP.	61-64
Risk Management	a) We describe the Bank's processes for identifying and assessing climate-related risks	The Bank has formulated a Climate Risk Management Framework for integration of climate risk into overall risk management framework and provide guidance on assessing the impact of climate change on the Bank's own operations due to physical risk events. Additionally, it guides in identifying and analysing the impact of both physical and transition risks on the lending portfolio. The Bank’s Social and Environmental Management Framework requires analysis of specific environmental and social risks as part of the overall credit appraisal process for assessing new project financing proposals.	61-64
	b) We describe the Bank's processes for managing climate-related risks	With regard to credit risk management, borrowers are evaluated based on their responses to checklists designed to assess ESG maturity and ESG risk of their business models resulting in an overall ESG rating. With regard to its own operations, the Bank conducts periodic assessment of climate risk on infrastructure including data centres and selected operations hubs in accordance with the business continuity management plan.	62-64
	b) We describe how processes for identifying, assessing and managing climate-related risks are integrated into the Bank's overall risk management	The Bank continues to develop and enhance processes for identifying, assessing and managing climate-related risks and drive integration of climate risk into its business activities and operations. As part of the credit evaluation process for large corporate lending proposals, ESG score, if available from external agencies, are considered. Additionally, sectorspecific risk assessment tools are in place to gauge the ESG maturity and associated risks of borrowers with exposures exceeding a certain threshold. During fiscal 2024, the Bank established ESG risk assessment tool for two more sectors, taking the total number of sectors to 16.	61-64
Metrics & Targets	a) Our Scope 1, Scope 2 and Scope 3 operational greenhouse gas (GHG) emissions and the related actions being taken	The Bank measures its operational Scope 1, Scope 2 and some categories of Scope 3 emissions and report these with disclosure on the methodologies and climate databases used. The Bank is enhancing investments and interventions across key parameters like afforestation, conserving forest ecology and biodiversity, water conservation as well as embracing circularity related to waste management, its disposal and encouraging recycling.	15-22 59-60, 65
Metrics & Targets	b) Our target used to manage carbon footprint in own operations	We have set ourselves the goal of becoming carbon neutral in Scope 1 and 2 emissions from our own operations by fiscal 2032.	60