ESG
Approach

Unlocking the Possibilities of a
Better Tomorrow

As a responsible financial institution, we catalyse India’s progress on the path towards equitable and sustainable economic growth. Our ESG strategy is woven around realising our purpose of creating a more ‘inclusive and equitable economy, thriving community and a healthier planet.’

Through our Board-led ESG strategy and action plan, we demonstrate our resolve to drive our country’s economic growth as providers of responsible, sustainable finance.

Since 2015, we have had in place the Board-approved ESG Policy for Lending that integrates environmental and social risk considerations into our credit appraisal mechanisms.

Our Sustainable Financing Framework document, released in August 2021, articulates our strategy for financing ESGaligned sectors and defines the project categories considered to be eligible as ‘sustainable’. The Framework received Second Party Opinion from Sustainalytics, thus providing the highest level of confidence on its alignment to global sustainable finance best practices.

ESG Governance Structure

ESG, a Board-level Agenda
Axis Bank is the first Indian Bank to constitute an ESG Committee of the Board
ESG Oversight at Leadership level
ESG Steering Committee at the Management level championing ESG across the Bank
DEI Council providing oversight on Diversity, Equity and Inclusion
ESG Working Group for implementing the Sustainable Financing Framework
Building Ownership at Business Level
ESG Commitments announced for Retail and Corporate businesses
Sustainable Financing Framework in place to drive ESG issuances

Our ESG Commitments

In September 2021, we announced a series of commitments aligned to achieving Sustainable Development Goals and supporting India’s commitments under the Paris Agreement.

Positive Impact Financing

  • Incremental financing of `30,000 crores for positive-impact sectors by fiscal 2027
  • Making 5% of Retail Two- Wheeler loan portfolio as electric by fiscal 2024, offering 0.5% interest discount for new EV loans

Proactive Risk Mitigation

  • Integrating ESG into risk management at the enterprise level
  • Expanding ESG risk coverage in credit appraisal under our ESG Policy for Lending
  • Scaling down exposure to carbon-intensive sectors in our wholesale lending portfolio

Inclusive and Equitable Economy

  • Incremental disbursement of `10,000 crores by fiscal 2024 under Asha Home Loans for affordable housing
  • Ensuring 30% female representation in workforce by fiscal 2027, aligned to our #ComeAsYouAre Diversity Charter

Healthier Planet

  • Planting 2 million trees by fiscal 2027 across India towards contributing to creating a carbon sink
  • Exploring carbon neutrality in our business operations
Key Sustainability Performance Highlights in Fiscal 2022

Sustainable Banking and Finance Banking

  • Joint Arranger for Vector Green Energy's Rupee-denominated Certified Green Bonds - First AAA-rated deal in the Renewable Energy sector
  • Raised India's first sustainable AT1 issue, USD $600 million perpetual Bonds in the overseas market through GIFT City IBU
  • Joint Arranger for Avaada Energy's Rupee-denominated Certified Green Bonds - India's largest AAArated issuance by any Renewable Energy developer
  • Mandated Lead Arranger and Book Runner for $750 million Sustainability Linked Loan to SKI Carbon Black
  • Joint Lead Arranger for Dollardenominated Sustainable bonds of $3.4 billion cumulatively, in fiscal 2022

Banking for the Emerging India

  • 1.6 million+ live customers under Axis Sahyog microfinance program
  • Over 0.6 million borrowers under the PM MUDRA Yojana for microentrepreneurs
  • `3,359 crores disbursed in Asha affordable housing loans in fiscal 2022
Key Sustainable Financing Deals in Fiscal 2022

Partnership to Boost E-Mobility Ecosystem in the Country

In November 2021, we announced a partnership and the intent to execute an umbrella guarantee framework with GuarantCo ─ the guarantee arm of the Private Infrastructure Development Group, jointly owned by the G7.

The framework of $200 million with a programme size of $300 million will play a key role in accelerating the e-mobility eco-system in India.

Strengthening India’s Healthcare Infrastructure

We made a commitment to strengthen India’s healthcare infrastructure by signing a memorandum of understanding with IPE Global Ltd.

Under this partnership, we will provide affordable finance of up to $150 million through SAMRIDH, an initiative supported by the United States Agency for International Development (USAID), to provide affordable debt financing to health enterprises and innovators.

Supporting supply chain financing in impact sectors

Signed a partial guarantee facility agreement with ADB with an initial outlay of $150 million towards supporting supply chain financing in impact sectors, including priority sectors

Targeted Strategy for a Stellar Performance
Driving Positive Change in our Communities

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