STRATEGIC APPROACH TO SUSTAINABLE FINANCING
Visualize, strategize, actualize is the motto that guides YES BANK towards sustainable financing
Strategic approach to sustainable financing
YES BANK believes in a knowledge driven approach to banking and has deployed a strategic four-pronged, approach to its sustainable financing work. The following attributes of the bank’s financing mechanism make it a winning strategy:
Genuine intent to contribute
The bank believes that to achieve any strategic outcome, short, medium and long term goals are important. Aligned to this thought, YES BANK has announced many targeted commitments towards sustainability and climate action.
The bank on the occasion of Conference of Parties (COP) 21 climate summit in Paris, has targeted to mobilize USD 5 Billion from 2015 to 2020 for climate action through lending, investing and raising capital towards mitigation, adaptation and resilience will holistically impact and aid India’s target of meeting its Nationally Determined Contributions (NDCs).
The other commitments of the bank including the target finding of 5,000 MW of clean energy and the planting of 2 million trees by 2020 shows the unfeigned attempt the bank is making towards sustainable development.
Strict adherence to policies
The bank in a structured way puts in place relevant policies and processes that help achieve the aforementioned targets. YES BANK accordingly has in place a detailed set of internal guidelines for its green bonds to be Green Bond Principles compliant. The bank also instituted an Environmental & Social policy to guide its lending decisions, while its resource management is upheld by an Environmental Management Policy
This policy-led approach substantiated with clear procedures has not only made the strategy self-run, but has also helped the bank reach its leadership position in this space in India.
To further bolster its approach to sustainable finance, the bank has become an active member of some highly credible coalitions. YES BANK, as the first Indian signatory to the UNEP FI, a global partnership between the UNEP and financial sector, continues to play a leadership role at the platform. Namita Vikas, Group President and Global Head – Climate Strategy & Responsible Banking, is the current Asia-Pacific Chair of the UNEP FI.
YES BANK’s membership with the Natural Capital Finance Alliance (NCFA), which “seeks to increase awareness of the natural capital risks to which financial institutions expose themselves through loans and investments” and the bank’s association with the Green Bonds Principles (GBP) is a testimony to the bank’s sincerity towards the making of a new benchmark for sustainable financing.
These memberships not only are the conduits of international best practice, but also strengthen the sustainable finance operations in the bank.
Continuous evolution through learning
YES BANK also focuses on internal capacity building in the environmental sustainability domain by creating a learning environment for its employees. Among many other initiatives towards climate change mitigation, the bank has also taken considerable steps to reduce its own carbon footprint. To achieve this, the bank has designed a series of e-learning modules which each employee has to attend mandatorily. The modules educate the employees as to how they can make environmentally responsible decisions in their daily activities like reduction in paper consumption, using clean water wisely etc. For successful integration of environment and social risks under YES BANK’s risk management framework, the bank employs focused workshops and e-learning modules. This equips the employees with relevant skillset and tools to recognize, evaluate and, to the highest degree possible, manage the relevant environmental and social risks. Other initiative like knowledge sessions by reputed industry leaders and intra knowledge transfer sessions within teams also help the bank move towards a common goal of mitigating environmental risks.
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