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The implementation is overseen by the Environmental & Social and Governance (ESG) Committee. Regular updates are provided to Bank’s board.

 

The objectives of the Sustainability Framework are as follows:

  • Setting strategic Environmental & Social (E&S) objectives, such as offering new products that address sustainability
  • Incorporating E&S risk considerations into all financing activities and building client awareness on this subject
  • Excluding financing clients whose business activities do not meet the Bank’s principles. The Bank has adopted the IFC Exclusion List
  • Communicating E&S expectations to all staff, clients and other external stakeholders
  • Committing to improving the overall E&S performance of its portfolio through enhanced risk management
  • Committing to continually building capacity of Bank’s staff to identify E&S risk
  • Development and delivery of financial products and services that enable more sustainable agricultural practices and results in resource conservation/ enhancement of resource efficiency
  • Running financial inclusion programme for marginalized, economically weaker and business-wise less attractive sections in various States

 

RBL Bank is one of the few Banks in India to have successfully integrated this framework into its Business Practices including Risk Management Practices.

 

 

Environmental and social risk management

Managing Environmental & Social (E&S) risk forms an integral part of this framework. This involves performing E&S due diligence as part of the credit appraisal and sanction process.

 

All lending transactions are screened against the ‘exclusion list’, which contains activities that do not meet the Bank’s principles. An illustrative list of such activities, which the Bank does not fund, include – production or trade in weapons and munitions, production or trade in tobacco; gambling or casinos etc.

 

The transactions are then screened for E&S Risks including climate change risk. The Bank engages with the clients to identify and find solutions to mitigate the E&S risks identified.

 

Sustainable agricultural practices

RBL Bank is one of the leading banks in funding agricultural activities. The Bank has a strong mandate towards promoting sustainable and environmental friendly initiatives like

  • Promoting micro/drip irrigation,
  • Installation of solar pump-sets
  • Replacement of old energy inefficient pump sets
  • Installation of energy efficient bulk milk-chillers
  • Promoting intensive flori and horticulture in controlled environment with minimum inputs etc.

 

These initiatives lead to reduction in resource and energy inputs, improving soil quality, reducing Green House Gas (GHG) emissions, and help developing capacities of marginalized agrarian communities towards mitigating climate change.

 

Financial literacy and financial inclusion

The Bank, in association with multilateral development institutions and several non-government organizations (NGOs), has been engaged in conducting Financial Literacy training programmes in several States across India. The target audience for these programmes are the marginalized, and economically weaker sections of society, especially women in small self-help/ joint liability groups. These programmes are designed to meet following objectives:

  • Introduce target audience to basic financial products like savings account, loan account, term deposits and insurance
  • Explain concepts of financial discipline to help manage their money in a responsible manner
  • Improve their access to credit through formal channels to avoid exploitation by money-lenders
  • Educate with respect to usage of banking services through alternate channels like mobile ATMs or SMS

 

The Bank has introduced innovative financial inclusion instruments like Micro ATM, micro loans, insurance and investment products.

 

Independent impact assessment studies have shown that the Bank’s financial inclusion & financial literacy activities have had positive impact on the livelihood and financial choices of targeted communities, leading to their financial security and financial independence.

 

Feedback Mechanism

The Bank would like to receive your feedback or comments on Sustainability Framework. We can be reached as follows:

 

Email: ES.feedback@rblbank.com
Postal address: The ESMS Officer,
RBL Bank Ltd.,
6th Foor, Tower 2B,
One World Center,
841, Senapati Bapat Marg, Lower Parel (West),
Mumbai – 400013, Maharashtra, India