Climate Change and Finance in India 2

8/8/2019 Climate Change and Finance in India 2

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CLIMATE CHANGEAND FINANCEIN INDIA:BANKING ON THE LOW CARBON INDIAN ECONOMY MAY 2010


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Thi report wa commiioned by:

Knowledge partner:

CLIMATE CHANGEAND FINANCEIN INDIA:BANKING ON THE LOW CARBON INDIAN ECONOMY


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FOREW0RD 3

EXECUTIVESUMMARY 4

BACKGROUND 6

SECTIONONE:CLIMATECHANGEANDINDIA'SRESPONSE 7

1.1CLIMATECHANGE-THESCIENCE 7

1.2CLIMATECHANGE-THEINTERNATIONALPOLICYRESPONSE 7

1.3CLIMATECHANGE-INDIA'SRESPONSE 8

SECTIONTWO:BANKINGSECTORRESPONSETOCLIMATECHANGE 9

2.1BANKINGRESPONSETOCLIMATECHANGEININDIA 9

2.2COMMITMENTANDSENIORLEADERSHIPCHANGEININDIA 10

2.3MANAGEMENT 11

2.4MANAGINGCARBONEMISSIONS 12

2.5EXTERNALREPORTING 12

2.6INTERNALCOMMUNICATIONSANDEMPLOYEEENGAGEMENT 12

2.7ENABLERSFORCLIMATECHANGEACTIVITIES 13

2.8PERCEIVEDBARRIERSTOCLIMATECHANGEACTIVITIES 13

2.9INNOVATIONANDACTION 14

SECTIONTHREE:CONCLUSIONSANDOPPORTUNITIESFORFURTHERACTION 17

3.1MANAGINGOPERATIONALEMISSIONS 18

3.2INTEGRATINGCLIMATECHANGEISSUESANDBUSINESSACTIVITIES 18

3.3BROADERENGAGEMENTWITHSTAKEHOLDERS 19

APPENDICES 20

APPENDIX1:GLOBALFRAMEWORKSANDSUPPORTONCLIMATECHANGEFORTHEFINANCESECTOR 20

APPENDIX2:QUESTIONNAIREONCLIMATECHANGEACTIVITIESINTHEINDIANBANKINGSECTOR 21

APPENDIX3:FURTHERRESOURCES 28

ACKNOWLEDGMENTS 30

TABLE OF CONTENTS

The Climate Group

Firt publihed in 2010 by The Climate Group

All right reerved. No part of thi publication may be reproduced or

tranmitted in any form or by any mean without prior permiion of The

Climate Group. All content owned by their repective copyright owner.

Reportcommissionedby:

Indian Bank' Aociation

The Climate Group

Knowledgepartner:

PricewaterhoueCooper

Forfurtherinformationonthereport,contact:

NewDelhiOffice:

The Climate Group

c/o Incube Buine Centre

Level 3, Room No. 301

18, Nehru Place

New Delhi 110 019, India

Contact: Aditi Da

[email protected]

T: +91 (0)11 3061 4613

MumbaiOffice:

Contact: Urvahi Devidayal

[email protected]

T: +91 (0)98 2150 7256

W W W . T H E C L I M A T E G R O U P . O R G

Reportdesignedby:

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Moving to a properou low carbon economy can drive innovation, increae productivity and generate new well-

paid job. However, to achieve thi, ignificant new invetment will need to be found and, though government can

provide the neceary incentive, it will be th e private ector that will provide the bulk of thi invetment.

Climate change i a ignificant iue for India. But while the effect of climate change are increaingly a rik to

the health, economy and the environment of the country, economit are alo recognizing that there are financial

reward from controlling climate change and developing a low carbon economy.

Bank can provide important leaderhip for the required economic tranformation that will provide new

opportunitie for financing and invetment policie a well a portfolio management for the creation of a trong

and ucceful low carbon economy.

In thi report we eamine how bank can be catalyt for change. We dicu how bank are providing

commitment and leaderhip in creating a low carbon economy and alo the challenge to invetment.

FOREWORD

sureh Prabhu

Former Union Miniter and Promoter Director

The Climate Group, India

steve Howard

CEO

The Climate Group


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5

4. LEADERSHIP ROLE

seven of the eight bank believe that commercial lending bank

in India can play a leaderhip role in the buine community in

addreing the challenge of climate change.

In the majority of the bank, the climate change agenda i driven

by top management. Bank that demontrate a high level of enior

upport for addreing climate change alo demontrate a high

level of activity around initiative that addre the iue. si of

the eight participating bank highlighted that climate change will

ignificantly impact the way they conduct buine. Thi include

taking advantage of the opportunitie but alo enuring financial

return are not impacted by climate change. Bank indicate that

integrating utainable development into the organization

policie and management approach improve morale of employee

and provide a trong and confident long-term relationhip withtakeholder.

5. FINANCIAL INCENTIVES

All participating bank highlight their concern for the environment

a being the key driver of the climate change agenda within their

repective organization and that the cot of introducing new

procee and product wa a barrier to change.

Bank are increaingly aware of the opportunitie that are

available to timulate invetmentuch a through low carbon

fund. However, the correct financial incentive are eential to

make thi a reality and the bank need to proactively engage with

the Government in India to enure that the right incentive are in place.

In addition, there i more that individual bank can do to develop

the product and ervice that client and conumer need to

tranition to a low carbon economy. Cutomer are increaingly

demanding uch product.

Thi report i intended a a reource for illutrating the eiting

cope of climate change activitie by bank. We alo hope that

it provide an opportunity for intereted bank to undertand

avenue for greater involvement. We hope that bank will continu e

to how engagementfrom the boardroom to the branche of

India impreive financial ytemin developing a low car bon,

properou future.

The Climate Group and the IBA agreed to produce a report outlining

bet practice in the finance indutry in India and recommend

action that bank can take to accelerate a low carbon economy.

Working with PricewaterhoueCooper, a urvey wa carried out to

gather thi information.

Amongt the report mot important concluion are:

1. A SMALL NUMBER OF BANKS ARE INITIATING CHANGE

There i a mall group of bank in India that are leading the ector

in tackling climate change and that recognize the commercial

advantage thi will provide. Energy efficiency i one key focu, with

an etimated market worth more than Us$15 billion by 2015.

2. TAKING ADVANTAGE OF POLICY

The action being taken by bank i no longer limited to reducingoperational emiion it i focued on taking advantage of

dometic and international climate change policy and framework,

uch a the Clean Development Mechanim (CDM) and India

National Action Plan on clima te change, to open new market.

3. SUCCESS MEANS TACKLING CLIMATE CHANGE

Four bank rated climate change a very important and in the Top

Ten Prioritie Critical to succe. However, public ector bank are

le involved in voluntary initiative and appear to be potponing

action until regulation i in place.

Economit are clear that ubtantial funding from the private

ector i needed to achieve the level of invetment required to

control the effect of climate change. The World Bank etimate

that the cot of mitigation in developing countrie alone range

from Us$140 billion to Us$175 billion annually until 2030.

Although thi i a great challenge, Indian bank are now in a trong

poition for the leveraging and channelling of thi invetment and

to ue the opportunity thi provide a the low carbon economy

develop. The National Action Plan on climate change ha led

to opportunitie for the financial ector and there have been

proactive initiative acro the pectrum of pu blic, private and

foreign bank in India.

EXECUTIVE SUMMARY

INDIAN BANKS: INVESTING IN

A LOW CARBON ECONOMY

ACHIEVING A LOW CARBON ECONOMY

In January 2009, a roundtable dicuion for CEO of financial

intitution, convened by The Climate Group, concluded that there

wa an imminent need for engagement with the Indian Bank

Aociation (IBA) and a larger cro ection of bank to raie

awarene on climate change. Thi report emerged from a meeting

in late 2009, when The Climate Group initiated dialogue with the

bank operating in India to dicu the mot effective way to

tackle climate change.

BANKS PLAY AN INDISPENSABLE

ROLE IN MOBILIzING FINANCIALRESOURCES ACROSS THE ECONOMYIN PARTICULAR, PROVIDING CAPITALFOR LARGE-SCALE INFRASTRUCTUREAND LOW CARBON TECHNOLOGYDEPLOYMENT.


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SECTION TWO outline the global repone from the banking ector

and then preent the finding from urveying the banking ector

in India;

SECTION THREE provide ome concluion from the urvey and

recommendation for the banking ector in India to accelerate the

growth of the low carbon economy.

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To undertand how bank in India are reponding to climate

change, the Indian Bank Aociation (IBA) and The Climate Group

(TCG) commiioned PricewaterhoueCooper (PwC) to carry out

a urvey of the leading intitution and provide an overview of the

main advance. The report i organized into three main ection:

SECTION ONE provide ome background on climate change, how

India i reponding and what thi mean for the banking ector;

BACKGROUND

CLIMATE CHANGE ANDINDIA'S RESPONSE

Whilt the mot recent UNFCCC negotiation, the Conference

of Partie (CoP) 15 at Copenhagen, did not deliver any legally

binding commitment, the Accord it produced ha led to all major

countrie publihing planvoluntary in the cae of developing

countrieon how they will low or cut their emiion over the

coming decade. One of the ummit' other major uccee wa

the financial pledge made (Us$30 billion over the th ree year

to 2012, and Us$100 billion a year by 2020).Thee are intended to

upport developing countrie mitigation and adaptation plan,

along with enhanced technology development and deployment,

REDD and capacity building. India i certain to be a major recipient

of ome of thee fund but will need to enure it ha the neceary

framework in place to take bet advantage of them.

SECTIONONE

1.1

1.2

An overwhelming body of cientific evidence now clearly indicate

that climate change i a eriou and urgent iue and that the

earth climate i rapidly changing, predominantly a a reult of

increae in greenhoue gae caued by human activitie. Climate

change i already evident from obervation of increae in global

average temperature, ea level rie, precipitation change, and

etreme weather event.

CLIMATE CHANGE - THE SCIENCE

CLIMATE CHANGE - THE INTERNATIONAL

POLICY RESPONSE

since the early 1990, there have been international effort to

gain conenu on how to tackle climate change. Central to thi

i the United Nation Framework Convention on Climate Change

(UNFCCC), which produced the Kyoto Protocol in 1997. A a non-

Anne 1 party to the UNFCCC and the Protocol, India i under no

legal obligation to curtail it greenhoue ga (GHG) emiion, but

India ha announced a voluntary plan to reduce carbon emiion

intenity by 20-25% by 2020. India i keen to be part of the olution

and i actively involved in dicuion that will lead to a pot Kyoto

regime that tackle the problem.

THE GLOBAL AVERAGE SURFACETEMPERATURE HAS INCREASED BYMORE THAN 0.7C OVER THE LASTCENTURY AND WILL CONTINUE TO RISE.CURRENT PROjECTIONS OF GLOBALAVERAGE TEMPERATURE CHANGE AREIN THE ORDER OF 0.2C PER DECADE(FROM 1990 TO 2050) OR BETWEEN1.1C AND 6.4C WITHIN A CENTURY(2090 2099 RELATIVE TO 1980 1999).1

1 http://www.ipcc.ch/publication_and_data/publication_and_data_report.htm


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INDIAS NATIONAL ACTION PLAN ON CLIMATE CHANGE ESSENTIALLY PROPOSESEIGHT NATIONAL MISSIONS, NAMELY, SOLAR; ENHANCED ENERGY EFFICIENCY;SUSTAINABLE HABITAT; WATER; SUSTAINING THE HIMALAYAN ECOSYSTEM;GREEN INDIA; SUSTAINABLE AGRICULTURE; AND STRATEGIC KNOWLEDGE FORCLIMATE CHANGE.

2 http://www.buine-tandard.com/india/new/target-for-indutry-to-improve-energy-efficiency-thi-year/390958/

1.3

CLIMATE CHANGE - INDIA'S RESPONSE4. Bank controlling more than 80% of global project finance

volume have adopted the Equator Principle; and,

5. The world larget intitutional invetor, managing aet

of Us$18 trillion, have igned the Principle for Reponible

Invetment.

Bank play an indipenable role in mobilizing financial reource

acro the economyin particular, providing capital for large-cale

infratructure and low carbon technology deployment.

To date, climate change impact have only influenced finan cial

deciion at the margin, if at all. The following are jut a few

international eample of thi (ee the Appendice for further

detail about the initiative mentioned below):

1. si financial organization repreenting total aet of over

Us$5.5 trillion have adopted the Climate Principle, a leaderhip

initiative coordinated by TCG. Every organization that adopt the

Climate Principle i actively managing climate change acro

the full range of financial product and ervice, including:

reearch; aet management; retail banking; inurance and re-inurance; corporate banking; invetment banking and m arket;

and project finance;

2. More than 180 financial intitution upport the United Nation

Environment Program Finance Initiative (UNEP FI), the oldet

and larget partnerhip between the United Nation and the

banking, inurance and invetment world;

3. The pace of global clean energy invetment jumped from Us$60

billion a year in 2006 to Us$150 billion by 2007 and, depite the

financial crii, hit the ame level in 2008;

BANKING SECTOR RESPONSETO CLIMATE CHANGE

SECTIONTWO

2.1

BANKING RESPONSE TO CLIMATE CHANGE

IN INDIA

The IBA and TCG wanted to undertand more about how bank in

India are reponding to climate change. The urvey carried out for

thi report focued on five key theme:

1. COMMITMENT AND LEADERSHIP

How committed i the bank and how i thi demontrated?

2. MANAGEMENT

What i the level of management participation around climate

change iue and how i the bank tackling it own impact?

3. ENABLERS

What doe the bank perceive are the key enabler for puhing the

climate change agenda?

India i a ignatory to both the UNFCCC and the Kyoto Protocol. The

latter Clean Development Mechanim (CDM) ha provided India

with a ignificant opportunity for reducing carbon emiion at a

relatively low price through renewable energy project and energy

efficiency project, among other. Thi provide India with the

ability to make money through creating and trading carbon credit

through regulated carbon emiion trading cheme. The CDM

allow developed countrie to invet in emiion reduction where

it i cheapet globally. From it inception in 2001 and up to 2012,

the CDM i epected to produce 1.5 billion tonne of carbon dioide

equivalent emiion reduction.

India ha alo developed a National Action Plan on Climate Change

which outline a number of tep to imultaneouly advance

India' development and climate change adaptation and mitigation

objective. Finance i a key element of the National Action Plan on

Climate Change, outlined in the plan National Miion.

For eample:

NATIONAL MISSION ON ENHANCED ENERGY EFFICIENCY

The propoed National Miion on Enhanced Energy Efficiency

(NMEEE) focue on the creation of mechanim that will upport

financing of demand ide energy management program through

capturing the financial benefit of future energy aving.

The Partial Rik Guarantee Fund ha been developed to provide

commercial bank with partial coverage of rik epoure againt

loan made for energy efficiency project. The fund will charge a

mall fee on all project eeking the rik guarantee.

India ha et voluntary target to reduce carbon emiion

intenity by 20-25% by 2020. The target are upported bylegilation that will require mandatory fuel efficiency norm for

all vehicle, introduce green building code and provide a n

amendment to the Energy Conervation Act to make it neceary

for an initial group of 714 energy intenive buinee to take part

in a cheme to cap energy uage and ubequently trade energy

efficiency certificate.2


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Survey Questions: 1.5, 2.1, 2.2

COMMITMENT AND SENIOR LEADERSHIP

CHANGE IN INDIA

6. Private ector and international bank ehibited trong

awarene of the prevalent global framework upporting

climate change action. Five of the eight reponding bank

have participated in the Carbon Dicloure Project.

7. Public ector bank are le involved in voluntary initiative

and appear to be potponing action until regulation i in place.

8. Participating bank have highlighted that they are beginning

to form partnerhip with government agencie a well a

indutry aociation to effectively dicu and act on climate

iue.

9. The Reerve Bank of India ha iued a notification on

corporate ocial reponibility for bank with reference to the

role of bank in utainable development and non-financial

reporting. Thi highlight that the climate change agenda i

being increaingly maintreamed for the banking ector.

10. si of the eight participating bank highlighted that climate

change will ignificantly impact on the way they conduct

buine. Thi include taking advantage of the opportunitie

and alo enuring financial return are not impacted by

climate change.

MANAGEMENT

4. PERCEIVED BARRIERS

What doe the bank perceive are the key i nhibitor and barrier

which hinder the climate change agenda?

5. INNOVATION AND ACTION

How are bank acting to tackle climate change iue through their

core buine activitie, product and ervice?

CASE STUDY for 2.2

ICICI Bank

ICICI Bank recognize that care of the environment and the

larger ociety in which it operate i eential both from

a buine continuity a well a a corporate citizenhip

perpective.

Survey Questions: 1.1, 1.2, 1.3, 1.4, 1.6, 3.1, 3.2, 3.3, 3.4, 4.1,

5.1, 6.1

POLICIES AND PROGRAMS

1. The majority of bank have formal written tatement

decribing the purpoe and objective of the organization

commitment to climate change. Thee tatement uually form

part of the annual report of the bank.

2.3

PROTOCOLS AND FRAMEWORKS

Banks participating in:

Carbon Dicloure Project 5

UNEP FI 2

UN Global Compact 2

Equator Principle 2

Climate Principle 1

2.2

CASE STUDY for 2.3

IndusInd Bank launches solar-powered ATMs

InduInd Bank inaugurated Mumbai firt olar-powered

ATM a part of it Green Office Project campaign Hum aur

Hariyali. It alo unveiled a Green Office Manual - A Guide to

sutainable Practice, prepared in aociation with the Centre

for Environmental Reearch and Education (CERE). InduInd

new solar ATM replace the ue of conventional energy for eight

hour per day with eco-friendly and renewable olar energy.

The energy aved will be 1980 kW hr every year and will be

3 http://www.induind.com/download/solar_atm_Launch.pdf4 http://www.dnaindia.com/money/report_tate-bank-of-india-to-et-up-windmill_1373122

2. several bank are putting in place policie to reduce

the footprint of their electrical energy conumption by

implementing energy efficiency meaure uch a mart

lighting and replacement of inefficient appliance. A dditionally,

they have epreed interet in procuring energy from cleaner

ource if available.

3. The majority of bank have pecific policie in place to

conider the environmental iue aociated with energy ue,

purchaing, tranport, recycling and wate minimization.

accompanied by a imultaneou reduction in CO2

emiion

by 1942 kg. The uniquene of thi olar ATM i the ability to

tore and tranmit power on demand (in cae of power failure)

or need (time bai). In term of cot, the aving will be

ubtantial, approimately R. 20,000 per year in cae of a

commercial uer with grid power upply. And in area with

erratic power upply the olar will replace dieel generator

and tranlate into aving a high a R. 40,200 every year. 3

State Bank of India's Green Banking Policy

The state Bank of India (sBI), a part of it Green Banking Policy,

will et up windmill to generate 15 MW of power in Tamil Nadu,

Maharahtra and Gujarat for it own conumption. The sBI

chairman inaugurated the windmill et up at Panapatti village

in Tamil Nadu Coimbatore ditrict on April 23, 2010.

The mill in Tamil Nadu will generate 4.5 MW of power, while the

Maharahtra mill will have a capacity of 9 MW and Gujarat 1.5

MW. sBI wa the firt Bank in the country to think of generating

green power a a direct ubtitute to polluting thermal power

and implement the renewable energy project for captive ue. 4

Citi's Equator Principles

The Equator Principle erve a a backbone for Citi broader

Environmental and social Rik Management (EsRM) Policy,

which etend beyond project finance. Citi wa a leader in the

development of the Equator Principle in 2003. Citi EsRM policy

wa developed in 2003 and ha been regularly updated to reflect

implementation eperience.

1. Four bank rated climate change a very important and in the

Top Ten Prioritie Critical to succe.

2. seven of the eight bank believe that commercial lending bank

in India can play a leaderhip role in the buine community in

addreing the challenge of climate change.

3. In the majority of the bank, the climate change agenda i

driven by top management.

4. Bank that demontrate a high level of enior upport for

addreing climate change alo demontrate a high level of

activity around initiative that addre the iue.

5. All private ector and international bank are involved in

climate change activitie through formal partnerhip or

relationhip with eternal partner at a regional, national or

international level.

INDIA ANNOUNCED AVOLUNTARY PLAN TO REDUCECARBON EMISSION INTENSITYBY 20-25% BY 2020.


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CASE STUDY for 2.6

HSBC Global Research: Climate Change

The HsBC Climate Change Centre of Ecellence, etablihed

in 2007, invetigate the likely rik and opportunitie

of climate change for the financial market and HsBC'

buine unit. In 2009, the Centre produced 30 report on

climate change cience, policie and market, including a

comprehenive analyi of fical timulu for climate-related

invetment. It reported on the implication of 'COP15' for

global buine and invetment, and produced th e firt

comparative aement of G20 nation' vulnerability to

climate change rik by 2020. Thee report help over 3,000

cutomer to identify opportunitie and plan for potential

climate change rik.

The HsBC Global Climate Change Benchmark Inde track the

tock market performance of over 380 global companie that

generate revenue from product and ervice for mitigating

and adapting to climate ch ange. Reviewed quarterly, the

inde i ued by three of the world' 10 larget penion

cheme and by ome of the larget aet manager.

13

INTERNAL COMMUNICATIONS AND EMPLOYEE

ENGAGEMENT

1. All of the private ector bank highlighted that climate change

iue are dicued and communicated internally.

2. Five of the eight bank have initiated employee engagement

program that tackle climate change. Thee inclu de viibility

to climate change on intranet ite and portal, deignating

employee a Climate Champion, and building action on

tackling climate change into the performance objective of

employee.

3. Bank indicate that integrating utainable development into

the organization policie and management approach improve

the morale of employee and provide a trong and confident

long-term relationhip with takeholder. All participating

bank highlight their concern for the environment a being thekey thrut propelling the climate change agenda within their

repective organization.

The majority of participating bank have already intituted

everal employee engagement initiative including:

1. Information on climate change provided on an internal

intranet ite;

2. Creating performance objective for the organization and

individual;

3. Deignating certain employee a Climate Champion;

4. Creating internal forum and network dedicated to

dicuing and tackling the iue of climate change and

utainability;

1. The majority of the participating bank have already initiated

meaure to calculate energy conumption and carbon

footprint.

2. Eternal energy audit are now the norm a oppoed to the

eception. The finding from uch audit have enabled bank

to make cot aving due to reduction in the conumption of

energy.

3. All of the bank indicated that the iue of climate change and

utainability wa important to the organization.

CASE STUDY for 2.4

Union Bank of India's Energy Efficiency Measures

Union Bank ha decided to undertake an electrical energy

audit annually. In addition the bank ha intalled olar water

heater at variou facilitie maintained by them. The upport

ervice department of the Bank ha been identified to

implement uch an energy/emiion reduction program.

EXTERNAL REPORTING

1. All of the participating bank communicate their action on

climate change a part of their Environmental or Corporate

social Reponibility Report and tatement.

2. Five of the eight reponding bank are undertaking ome form

of greenhoue ga (GHG) inventory eercie uch a calculating

their carbon foot-printing and undertaking energy audit. The

bank that participate in the CDP utilize methodologie uch a

the GHG Protocol to calculate their carbon footprint.

3. seven of the eight reponding bank have an emiion reduction

or energy reduction plan.

2.5

2.6

ENABLERS FOR CLIMATE CHANGE ACTIVITIES

Survey Question: 1.7

INTERNAL FACTORS

The top internal factor which drive climate change activity within

an organization were: 1) economic benefit and profitability, 2)

board influence and 3) marketing benefit (i.e. enhancement of

brand and reputation).

Increaing invetor preure i a driver for eecutive board to take

action and i likely to become more ignificant a initiative uch

a the Carbon Dicloure Project become more prevalent.

5. Training employee on pecific technical front, uch a,

utainability creen on lending portfolio, enhanced

invetment criteria for low carbon project.

6. Implementing car pool for employee, encouraging

employee to cycle to work and other tranport in itiative.

2.7

MANAGING CARBON EMISSIONS

2.4 CASE STUDY for 2.5

IDBI Bank

IDBI Bank i a member of the Council of National Action Plan

on Climate Change (NAPCC). The Bank i alo a ignatory

invetor to Carbon Dicloure Project (CDP), which aim to

create a relationhip between hareholder and corporation

regarding the implication for hareholder value and

commercial operation preented by climate change.

CLIMATE CHANGE PRESENTS US WITHBOTH RISKS AND OPPORTUNITIES. WITHINTRODUCTION OF NEW POLICIES BY THEGOVERNMENT, THERE IS POTENTIAL TO MODIFYTHE BANKS GUIDELINES ON FINANCING. THEBIGGEST RISK THAT IS POSED WOULD BE CREDITRISKS AS POLICIES TO CUT EMISSIONS CANCREATE COSTS FOR CARBON INTENSIVE SECTORSAND COMPANIES. YES BANK

Survey Questions: 1.8, 6.2

The top barrier to implementing climate change agenda indicated

by the bank include: 1) la ck of regulatory benefit and policy, 2)

lack of technical knowhow and 3) cot implication.

PERCEIVED BARRIERS TO CLIMATE

CHANGE ACTIVITIES

2.8

EXTERNAL FACTORS

The top eternal factor which drive climate change activity within

an organization were 1) environmental benefit and 2) competitive

advantage/new buine opportunitie.

ECONOMICBENEFITS

BOARD

INFLUENCE

MARKETINGBENEFITS

ENABLERS OFCLIMATE CHANGE ACTIVITIES

6

5

4

3

2

1

0


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CASE STUDY for 2.9

IDBI Carbon Desk

IDBI Bank ha an ecluive team working on CDM adviory

ervice. IDBI Bank provide end-to-end ervice right from

documentation through to regitration of CDM Project

for the commercialization of carbon credit. The bank ha

launched an innovative product for up front financing againt

the carbon credit/carbon credit receivable. IDBI Bank alo

facilitate regitration of CDM Project with UNFCCC andtrading of carbon credit generated by the C DM Project. The

Bank ha alo implemented a refinance cheme for energy

aving project for micro, mall and medium enterprie

(MsME) ector.

INNOVATION AND ACTION

Survey Questions: 3.1, 3.2, 3.3, 3.4, 5.1, 6.1

The aement of innovation and action ta ken by the bank ue

the Climate Principle framework to preent the fin ding from key

buine line.

RESEARCH

1. Currently, reearch on climate change i being carried out by

only two of the reponding bank.

2. There i limited amount of ophiticated reearch purued by

bank in India.

3. Moreover, the reearch in ome of the bank i driven at a

global level and very limited knowhow i available for local

implementation and analyi.

RETAIL BANKING

1. Half of the reponding bank highlighted that their organization ha

incorporated climate and carbon iue into the retail banking arena.

2.9

CASE STUDY for 2.9

SBI Green Home Loans

The state Bank of India ha adopted a Green Banking Policy

with the objective of contributing toward the fight againt

climate change. One of the initiative approved by the board

for thi purpoe i giving i ncentive to cutomer who chooe

green project, i.e. thoe project which reduce carbon

emiion and promote r enewable energy. Green Houing

or Green Home i one of the type of project identified for

thi purpoe. The new Green Home Loan scheme will upport

environmentally-friendly reidential project and will offer

variou conceionreduced margin, lower interet rate

and zero proceing fee. Thee loan will be anctioned for

project rated by the Indian Green Building Council (IGBC). The

new loan offer everal financial benefitby offering a 5%

conceion in margin, 0.25% conceion in interet rate and

waiver of proceing fee.5

5 http://www.bi.co.in/uer.htm?action=viewection&lang=0&id=0,1,20,115,741,750,786

CASE STUDY for 2.9

ICICI Bank's Environmentally Sustainable Finance Initiatives

1. Corporate Environmental Stewardship Initiatives

The Corporate Environmental stewardhip Programme with

the Bombay Natural Hitory society (BNHs) wa pioneered by

ICICI Bank to enitize variou corporate bodie, financial

intitution/bank and government agencie involved in

project planning on iue regarding biodiverity, wildlife

habitat, variou environmental law and convention. A

part of the programme, BNHs ha intitutionalized a Green

Governance Award to recognize the effort of companie and

other organization that promote biodiverity conervation of

habitat, flora and fauna.

2. ICICI's Clean Technology Initiatives

ICICI Bank ha been aiting variou organization to

undertake clean energy and environmentally utainable

project/initiative. ICICI Bank ha aited project that

would pecifically promote energy efficiency, renewable

energy, bioma co-generation, bioma gaification, demand

ide management (by utilitie), wate heat recovery, energy

ervice companie (EsCO) that demontrate ubtantial

aving in energy on a hared aving bai a well a project

that lead to pollution prevention and wate minimization at

ource. ICICI Bank ha aited EsCO to facilitate variou

urban local bodie and manufacturing companie in reducing

their energy bill. ICICI Bank introduced the municipal hared

aving EsCO model for the firt time in India.

CASE STUDY for 2.9

YES Bank's YES Community

Through the retail branche, Ye Bank i in corporating

community development initiative uch a clean and greendrive, energy efficiency practice, workplace health and

afety and the development of local diater management

plan through it Ye Community i nitiative. Ye Community

engage with the local communitie urrounding our bank

branche in India through micro-event under the aegi of

'Planet Earth on the ub-theme of:

a. Pollution Prevention

b. Recycling and Minimizing Wate

c. Conerving Energy

d. Conerving Water

e. Improving sanitation and Cleanline

IT IS RIGHT TO STATE THAT COMMERCIALLENDING BANKS CAN CONVERT SOCIO-ENVIRONMENTAL RISKS INTO A BROAD RANGE OFOPPORTUNITIES TO ADDRESS THE CHALLENGESOF CLIMATE CHANGE. YES BANK

One of the key finding from the urvey wa that many bank want

to ee more regulation that provide an enabling framework.

some bank uggeted lack of general awarene about clim ate

hinder their ability to move initiative forward.

Cot implication were cited by three of the eight bank a a barrier

to addreing climate change. Though it i not the top inhibitor, it

doe have a bearing on action that are taken by an organization

and the product that ar e developed for client. However, a there

are often additional benefit uch a improved reputation or

increaed cutomer loyalty many cot concern can be overcome.

2. Thee initiative are primarily about integrating cultural

enitization to climate change and environmental iue uch

a encouraging cutomer to witch to electronic tatement

and launching green campaign at branch outlet.

CORPORATE BANKING

1. several of the participating bank reponded that many

initiative in corporate banking are underway which facilitate

a tranition to a low carbon economy. However, there i very

limited information in the public domain to undertand what

thi mean in practice.

2. Bank are alo cognizant of how client default rik may

increae from unanticipated or underetimated mitigation

cot, phyical damage to corporate aet connected to

etreme weather event or regulatory rik and are looking at

the bet way to tackle thi.

PROjECT FINANCE

1. Lack of technical knowhow to evaluate the climate change rik

and opportunitie aociated with project and inufficient

availability of tandard benchmark appear to be a major factor

in hindering the conideration of climate change in project

finance.

6

LACKOFREGULATORYBENEFITS

LACKOFTECHNICAL

KNOW-HOW

COSTIMPLICATIONS

PERCEIVED BARRIERS TOCLIMATE CHANGE ACTIVITY

5

4

3

2

1

0

7

8

LACKOF

AWARENESS


11/19

17

CASE STUDY for 2.9

ABN AMRO (Royal Bank of Scotland)

ABN AMRO launched the Indian sutainable Development

Fund, opening up a new emerging market for ocially

reponible invetor. The formidable tak for the India sRI

fund i finding companie that meet global tandard for

environmental, ocial and corporate governance (EsG) iue.

Thi i the firt broadly-creened Indian sRI mutual fund.

Work i being done by CRIsIL and Boton-baed KLD Reearch

& Analytic to ytematically evaluate Indian companie.

ABN AMRO Aet Management i planning to put 65% of the

fund aet in creened companie, and th e remainder in

other tock, debt and money market intrument. The fund

i tructured a a three-year cloe ended equity fund with

an automatic converion to an open-ended cheme after the

three year are over. Long-term capital growth i the fund

invetment objective, uing an actively managed portfolio

of sRI companie focuing on utainable development. It

offered the regular plan with growth and dividend option.

Working with CRIsIL, whoe majority hareholder i standard

and Poor (s&P), ABN AMRO choe which companie to

include in the Indian sutainable Development Fund. CRIsIL

ha elected 245 companie from the s&P CNx 500 baed on

the companie EsG practice. The s&P CNx 500 i a broad-

baed equity inde covering the Indian capital market.

CRIsIL plan to evaluate two hundred and forty five

companie from the s&P CNx 500 on a yearly bai to identify

sRI companie in India.

CASE STUDY for 2.9

ICICI Bank's Support for Clean Technology

1. Clean Coal Technologies

In the area of coal technologie, ICICI Bank ha been

reponible for introducing innovative concept like deepbeneficiation of coal (coal waherie) and coal bed methane

for the firt time in the country. Through a demontration

project ICICI aited the firt coal wahery in the country

for providing a olution to Indian coal, which ha high ah

content and i highly polluting, via the proce of deep

beneficiation of coal. ICICI Bank alo aited the firt

company to uccefully demontrate the concept of coal

bed methane in India. The replication potential of thi

demontration project ha been ignificant.

2. zero Emission Vehicles

ICICI Bank ha taken tep to promote a cleaner urban

environment by providing conceional aitance to

project that endeavor to manufacture vehicle with zero

emiion. The project that deigned and built the firt

paenger electric car in the countr y and that developed

electric drive ytem to manufacture electric three-

wheeler in India, were aited under thi initiative.

3. Finance for Innovative ProductsICICI aited a company for th e development of a product

which provide an eco-friendly air-conditioning alternative

to conventional air conditioner (AC). Thi product work

with indirect evaporative cooling technology by incorporating

a wet plate and a cro flow heat echanger in it deign. It

provide 100% filtered cool freh air and conume about 35%

power compared to an AC making it about 65% more energy

efficient. Beide, it alo doe not need chlorofluorocarbon

(CfC), a it doe not ru n on compreor-baed technology.

The company i currently working on improving the product'

heat echanger efficiency, minimum offer temperature and

product miniaturization.

2. Renewable energy technologie, given their innovative

character, often face a number of additional barrier compared

to other project, e.g. technical problem or higher u p front

cot. Therefore it i neceary to develop pecific epertie

and financial involvement in low carbon energy and the option

for managing the aociated rik.

dometically and internationallya the world move on to a lower

carbon development, are one that India cannot afford to pa up.

Implementing the climate change agenda may appear to entail

additional reource. Bank in India can carefully evaluate which

area would be mot complementary to their inherent organizational

tructure and ideology. Budget allocation may be et aide and cot

benefit analyi completed. Cot implication will only eit a long a

bank view climate change initiative a a cot centre for philanthropic

purpoe. A oon a bank can capitalize on the inherent opportunitie

which are now available, the concern over cot will diminih.

In ummary, climate change mitigation and adaptation i becoming

increaingly important to the Indian banking ector. It i alo going

to get harder for bank to neglect or delay action. India, the world'fourth-larget greenhoue ga emitter, though till low on per-capita

emiion, i under preure to cut emiion to battle climate change.

One of the mot fruitful finding of thi tudy i that it identified the

tremendou array of opportunitie. several bank operating in India

have already made inroad into the wealth of opportunitie which are

now available a highlighted. The focu for further potential action i

preented below.

The Indian National Action Plan on Climate Change ha become central

to etting the country on a low carbon development path. Lat year

the Indian Government approved a national trading cheme for carbon

credit and energy-efficiency certificate that it claim could be worth

more than 750 billion rupee (Us$15 billion) by 2015. Thi provide a

ignificant opportunity for the banking ector and a propoed perform,

achieve-and-trade cheme alo incentivize bank through partial

rik guarantee for lending to energy efficient project. Even in the

abence of certainty around climate regulation and policy, there are

ufficient commercial driver for bank to be proactive in facilitating

the tranition to a low carbon economy by dedicating greater amount

of finance for renewable and clean energy project. Between 2009 and

2011 UNEP etimate that a minimum of Us$750 billion i needed to

finance a utainable economic recovery by inveting in the greening

of five key ector of the global economy: building, energy, tranport,agriculture and water.

Internationally, bank realize that reponible finance i no longer a

marginal iue but a matter of good buine practice. The

proliferation of framework and protocol to thi effect further

tetifie to the urgency.

It i only correct that the focu of the Government of India will be on

maintaining economic development and alleviating poverty for the

foreeeable future and hould not be epected to implement policie

that will in any way jeopardize thee objective. Neverthele, the

opportunitie for buinee and financier that are emergingboth

CONCLUSIONS ANDOPPORTUNITIES FOR

FURTHER ACTION

SECTIONTHREE

3. some of the forward-looking bank in India are now actively

upporting cleaner project including clean coal technologie

and renewable energy project. Thi preent a good buine

cae a the future outlook for the low carbon energy market

i promiing. According to the International Energy Agency

invetment in cleaner energy at preent i Us$20 billion a year,

mainly to olar and wind power and i epected to grow to

Us$100 billion globally within ten year.

ASSET MANAGEMENT

Thi area of the finance ector i in it infancy in India. Only one

bank ha launched a fund that take account of EsG iue.


12/19

1919

3.1 MANAGING OPERATIONAL EMISSIONS

1. Undertake GHG inventory of operation.

2. Put in place policie for procurement of energy from renewable ource.

3. Put in policie for tranportation uch a carpooling, video conferencing

facilitie to reduce inter-city commute, among other.

4. Implement energy efficient practice uch a encouraging taff to

witch off computer and equipment, energy efficient lighting ytem,

energy-mart ATM and branche.

5. Go for LEED certification of building and enuring all new building and

office pace are LEED certified.

ENERGY, INFRASTRUCTURE AND TRANSPORT

3.2 INTEGRATING CLIMATE ISSUES INTO BUSINESS ACTIVITIES

3.2 INTEGRATING CLIMATE ISSUES INTO BUSINESS ACTIVITIES CONTINUED1. Initiate reearch that can be ued to develop product and ervice for

added revenue tream.

2. Get top-level management buy in for reearch initiative. Thi could be

achieved by eplaining the proce by which reearch ha led to revenue

and product development or commercial benefit.

3. Identify area where reearch i likely to bring in new opportunitie.

some department have a financial incentive to introduce new product

that facilitate low carbon development. Thi encourage link between

reearch activitie and core operation.

RESEARCH ACTIVITIES

1. Develop a range of climate-enitive product and ervice for their

client. Thee may include program to help conumer purchae more

energy-efficient home and appliance, and to invet their depoit in

more climate-poitive way.

2. Create financing program to help home owner intall olar power

ytem, and to purchae more energy efficient home.

3. Bank may look to create aving and invetment intrument that invet

in renewable energy and energy aving initiative.

RETAIL BANKING

1. seize buine opportunitie to provide ervice and develop financial

technique that foter mitigation and accommodate adaptation to

climate change.

2. Dedicategreateramountoffinanceforrenewableandcleanenergyproject.

3. Apply ocial and environmental rik creen acro all corporate and

invetment banking operation.

4. Offer adviory ervice on utainability iue to their client and eek

to enure that they operate in accordance with bank policie.

5. Build on policie to engage with client to enure that client develop a

trategy to meaure, manage and dicloe their carbon footprint.

6. Train employee on environmental and ocial rik in lending to enure

that climate change i taken into account in corporate banking deciion.

CORPORATE BANKING

1. Evaluate low carbon project activitie for their lending potential and

revenue tream. Evaluate the rik of thee project activitie in the light

of long term benefit offered by thee project environmentally.

2. Undertake market aement tudie to analyze the potential market

ize of renewable and cleaner technologie in order to make ound

invetment deciion for operationalizing additional revenue tream.

3. set up internal department which have pecialized knowledge and

epertie in financing thee project and can judge with dicretion the

value add to the bank invetment portfolio.

PROjECT FINANCE

1. Develop policie to guide their invetment deciion pertaining to

climate-friendly technologie and project. Earmarking a eparate

percentage of fund may alo form part of thee policie.

ASSET MANAGEMENT

3.3 BROADER ENGAGEMENT WITH STAKEHOLDERS

1. Proactively engage policy maker to enure that the banking indutry i

not ubject to udden regulation with little or no advance preparedne.

2. Aume a leaderhip role in forming partnerhip with indutry

aociation, government agencie, think tank and nonprofit

organization to enure adequate repreentation of financial indutry

concern acro all level.

GOVERNMENT ENGAGEMENT

1. senitize cutomer toward the environment through e-tatement

campaign, energy aving campaign at branche and ATM, etc.

2. Build the momentum on employee engagement by introducing newer

and more varied mean of taff participation.

EMPLOYEE AND CUSTOMER ENGAGEMENT


13/19

21

APPENDICES

GLOBAL FRAMEWORKS AND SUPPORT ON

CLIMATE CHANGE FOR THE FINANCE SECTOR

There are everal international initiative that have been developed

to provide guidance for the finance ector in tackling a range of

environmental, ocial and governance (EsG) iue and ome that

pecifically focu on climate change. A lit of the key initiative i

ummarized below:

1. THE CLIMATE PRINCIPLES

The Climate Principle (www.theclimateprincipe.org) provide a

fully comprehenive and voluntary framework to guide the finance

ector in tackling the challenge of climate change. They provide

trategic direction on managing climate change acro the full

range of financial product and ervice, including: reearch

activitie; aet management; retail banking; inurance and re-

inurance; corporate banking; invetment banking and mar ket;

project finance.

2. UNEP FINANCE INITIATIVE

UNEP Finance Initiative (www.unepfi.org) i part of the United

Nation Environment Programme and engage a broad range of

financial intitution in a contructive dialogue about the neu

between economic development, environmental protection,

and utainable development. It i a trategic public-private

partnerhip between UNEP and the global financial ector. UNEP

FI work with over 180 bank, inurer and invetment firm,

and a range of partner organization, to undertand the impact

of environmental, ocial and governance iue on fina ncial

performance and utainable development.

3. THE EQUATOR PRINCIPLES

The Equator Principle (www.equator-principle.com) provide a

et of financial indutry benchmark for determining, aeing

and managing ocial and environmental rik in project financing.

Equator Principle Financial Intitution (EPFI) commit to not

providing loan to project where the borrower will not or i unable

to comply with their repective ocial and environmental policie

and procedure that implement the EP.

4. UN PRINCIPLES FOR RESPONSIBLE INVESTMENTS

UN Principle for Reponible Invetment (www.unpri.org) provide

a et of voluntary EsG principle that invetor hould take account

of due to the potential affect they ca n have on the performance of

invetment portfolio.

Thoe organization that ign the Principle are demontrating

enior level upport for utainable invetment. Currently, 728

organization globally have igned the Principle.

A.1

QUESTIONNAIRE ON CLIMATE CHANGE

ACTIVITIES IN THE INDIAN BANKING SECTOR

In total, eight bank reponded to the urvey which include two

public ector Indian bank, two international bank and four

private ector Indian bank.

The depth and tandard of repone from India leading bank to

the quetionnaire i a meaure of their engagement with the iue

of climate change. The repone demontrate the many poitive

tep that have been taken by bank in India over the pat year.

Climate change i becoming an increaingly important iue and

bank are keen to hare information on their carbon performance

and climate rik and opportunitie with invetor and other

takeholder. The following table encapulate the repone

received to the quetionnaire quantitatively.

PARAMETERS

Total No. of Bank invited to participate

Number of Bank which Reponded

No. of bank which Participated in Bet

Practice sharing

Private sector Participant

Public sector Participant

Multinational Bank Participant

NO. OF BANKS

16

8

5

4

2

2

A.2

THE DEPTH AND STANDARDOF RESPONSE FROM INDIASLEADING BANKS TO THEQUESTIONNAIRE IS A MEASUREOF THEIR ENGAGEMENT WITHTHE ISSUE OF CLIMATE CHANGE.


14/19

23

SECTION 1: AWARENESS/BACKGROUND

1. Climate Change and Sustainability

1.1 How important of an iue i climate change and utainability to your organization today?

Not Important

somewhat Important

Important

1.2 Who i leading your organization' climate change effort today? (Check all that apply)

CEO/CxO suite

Chief sutainability Officer

Director of sutainability/sutainability Manager

Individual Employee

sutainability Department

If other, pleae provide deta il: ________________________________________________________________________

1.3 Doe your organization have any of the following? (Check all that apply)

A sutainability/sutainable

Development policy or plan? Ye No N/A Y N Y N Y N

A Corporate social Reponibility (CsR) policy? Ye No N/A Y N Y N Y N

An environmental policy? Ye No N/A Y N Y N Y N

Pleae give detail of any plan or report: _________________________________________________________________

______________________________________________________________________________________________

1.4 I climate change an agenda of internal dicuion amongt organizational takeholder?

Ye No N/A

If ye, pleae give detail: ____________________________________________________________________________

1.5 Doe your organization believe that climate change will ignificantly impact the way it conduct buine?

Ye No N/A


1.6 Doe your organization believe that commercial lending bank in India can play a leaderhip role in the buine community in

addreing the challenge of climate change?

Ye No N/A


1.7 What factor drive the importance of climate change activity in your organization today? (Chooe up to 3 each)

InternalFactors

Improved hareholder value

Invetor preure, including ocially reponible inveting

Board influence

Economic benefit and profitability; cot reduction

Marketing benefit - reputation and brand

Employee attraction and retentionOther (pleae pecify): ___________________________

1.8 What challenge and barrier do you face in implementing climate change activity in your organization today? (Chooe up to 5)

Lack of management focu/buy in

Lack of awarene about climate change

Cot Implication

Lack of employee motivation

Not een a important

Time contraint

2. Frameworks, Protocols and Reporting

2.1 I your organization a member/ignatory to any of the protocol/framework? (Check all that apply)

Protocols/Frameworks Aware Participant

UNEP FI Ye No Ye No

The Climate Principle Ye No Ye No

Equator Principle Ye No Ye NoUN Global Compact Ye No Ye No

Carbon Dicloure Project Ye No Ye No

2.2 Doe your organization arti culate any formal written tatement decribing the purpoe and objective of the organization to

reflect a commitment to climate change activitie? (such tatement include policy and planning document, annual report, brochure,

catalogue, etc.)

Ye No N/A


I it reviewed

annually?

I it communicated

to all taff?

I it

publihed?

If Ye:

QUESTIONNAIRE PART ONE

Very Important

Top 10 strategic Priority Critical to succe

Environmental Health and safety (EHs)

Corporate Affair

Marketing/Communication

Other

No one i working on thi topic

ExternalFactors

Competitive advantage/buine opportunitie

Government benefit/regulation

Environmental benefit

social and community benefit/reponibility

Cutomer demand

Preure groupOther (pleae pecify): ___________________________

Lack of buine opportunitie

Lack of Regulatory Benefit/Policy

Lack of technical know-how

No peer group organization doing it

Other (pleae pecify): __________________________


15/19

25

SECTION 2: INTERNAL PRACTICES

3. Carbon Foot-Printing

3.1 Doe your organization currently undertake any activity to calculate GHG inventory or meaure it carbon footprint?

Ye No N/A


3.2 Pleae tate the methodology, aumption, calculation tool, databae, emiion factor and global warming potential you have

ued for calculating emiion. ________________________________________________________________________

______________________________________________________________________________________________

______________________________________________________________________________________________

3.3 D oe your organization have an emiion reduction/energy reduction plan?

Ye No N/A


3.4 I your organization involved in climate change activitie work through formal partnerhip or relationhip at regional, national or

international level? (such a project and partnerhip with primary and econdary chool, NGO, local government and buinee; or

international cooperation in olving climate change challenge through conference, etc.)

Ye No N/A

If ye, pleae give detail (including any key event your organization ha been involved in to create viibility).

______________________________________________________________________________________________

______________________________________________________________________________________________

4. Employee Engagement

4.1 Doe your organization have any pecific employee engagement practie to addre climate change?

ClimateChampions staff whoe role it i to promote or who receive/offer training in sD/climate change

Training Offer coure to employee which addre climate change and low carbon activitiePerformanceObectives Criteria for recognizing employee contribution to utainability and climate change

IntranetSite Give viibility to climate change on organization intranet ite

InternalNetworks Create and promote internal network on climate change initiative

InternalCommunication Communicate eample of good environmental practice to your taff

5. Energy, Water and Waste

5.1 Have you undertaken audit of your organization conumption and management of the following?

Energy Ye Pleae give detail ________________________________________________ No N/A

Water Ye Pleae give detail ________________________________________________ No N/A

Waste Ye Pleae give detail ________________________________________________ No N/A

6. Other Internal Practices

6.1 Doe your organization have any pecific policie to addre climate change with repect to the following area?

(Check all that apply)

Purchasing Procurement policie that reflect ocial, environmental and economic cot

Educating supplier

Education Embedding climate change related training into organization coure or program

Recycling/

WasteMinimization Recycling office paper; Reuing crap paper

Promoting efficient ue of reource

Energy Energy aving program

Transport Policy to reduce environmental impact of travel (promoting public tranport/car pooling/bue)

6.2 Which of the following do you view a barrier to adoption of environmental activitie? (Check all that apply)

Cot implication

Knowledge and kill

Not een a important in the organization

Other prioritie are more important

SECTION 3: BUSINESS OPPORTUNITIES

7. Investment Decision Criteria

7.1 Doe your organization have any utainability benchmark while evaluating invetment/lending opportunitie? (such a aeing any

ocial or environmental rik of th e project. Thee could include utainable development and ue of renewable natural reource, ocio-

economic impact, etc.)

Ye No N/A


7.2 Doe your organization employ any pecial or enhanced criteria for evaluating clean energy/low carbon/environmentally-friendly

project for the purpoe of lending or invetment? (such a having eparate parameter for evaluating renewable energy project,

different credit coring matrice, etc.)

Ye No N/A


7.3 Doe your organization perceive any additional rik/barrier aociated with clean energy/low carbon/ environmentally-friendly

project a oppoed to other project? (such a cot implication, knowledge and kill within the organization for effectively evaluating

thee project, inadequate thrut on upporting thee project, etc.)

Ye No N/A


Management time

Lack of regulatory/policy driver

Other (pleae pecify): ___________________


16/19

27

8. Specific Proect Details

8.1 I your organization involved in the trading of project-baed carbon credit a a eparate buine activity, or in direct upport of a

buine activity uch a invetment/lending to or the proviion of CDM ervice?

Ye No N/A


9.4 Corporate Adviory solution: In term of Corporate Adviory for your organization client, have you developed any tool/kill

neceary to advie client of the potential financial implication of carbon and climate rik and opportunitie aociated with their

buine tranaction? (such a creating a carbon trading dek, CDM adviory ervice, etc.)

Ye No N/A


9.5 Engaging with government/policy bodie: several government bodie within India have been promoting a plethora of program and

incentive to timulate a more conducive environment for environmentally utainable activitie which are financially viable a well. Ha

your organization identified any opportunitie to engage with government on the ame? (such a engaging with IREDA to emulate bet

practie for financing renewable energy project, etc.)

Ye No N/A


9.6 Project Finance: Ha your organization been involved in the origination of project-baed carbon credit? If o, pleae provide detail

including:

Your role in the project () ____________________________________________________________________________

______________________________________________________________________________________________

The location and technol ogie involved __________________________________________________________________

______________________________________________________________________________________________

The tandard/ cheme under which the project are being/h ave been developed _______________________________________

______________________________________________________________________________________________

Whether emiion reduction have been validated or verified ___________________________________________________

______________________________________________________________________________________________

The annual volume of generate d/projec ted carbon credit _____________________________________________________

______________________________________________________________________________________________

9.7 Ha your organization been involved in the funding of other clean energy/low carbon/environmentally-friendly project? (Not part of

the CDM proce).

Ye No N/A


9.8 Other: Pleae provide detail of any other bet practice you wih to highlight in the given contet. You may alo provide detail of any

planned initiative. ________________________________________________________________________________

______________________________________________________________________________________________

______________________________________________________________________________________________

______________________________________________________________________________________________

QUESTIONNAIRE PART TWO

BEST PRACTICES: CASE STUDIES

Thi ection i intended to gauge ome of the current bet practie by taking into account the effort of Indian financial intitution

and the reultant outcome. The premie i that the financial ervice indutry i key to utainability a it raie, allocate and price

capital, and provide rik coverage, influencing acce to financing and rik protection an d determining which government, buine or

individual activitie get financed or protected againt rik. The intent i to draw out cae tudy baed illutration from the information

collected which can afford the indutry peer eemplar benchmark. It i alo intended to glean ome of the opportunitie that may be

available to bank to either engage in ome of thee practice or enhance current activitie. Each of the opportunitie highlighted would

be accompanied by a ample of initiative currently underway baed on the information provided by the repondent.

Additionally, thi ection will alo borrow from the repone provided by you in ection 8 with repect to pecific project undertaken.

9. Best Practices

9.1 Product & service: Ha your organization launched any product or ervice to cutomer that promote low carbon product and

ervice? (such a loan for environmentally-friendly product or project, etc.)

Ye No N/A


9.2 Retail Banking: Ha your organization incorporated any climate and ca rbon iue into retail banking arena till date? (such a carbon

focued product/ervice/campaign, etc.)

Ye No N/A


9.3 Reearch Activitie: Ha your organization incorporated any climate and carbon iue into your reearch activitie till date?

Ye No N/A



17/19

29

FURTHER RESOURCES FURTHER RESOURCES CONTINUED...

http://rbidoc.rbi.org.in/rdoc/notification/PDF/82186.pdf

http://www.emt-india.net/NAPCC/main.htm

http://www.emt-india.net/NAPCC/

NMEEE-forPublicComment.pdf

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A.3

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18/19

ACKNOWLEDGEMENTS

Thi report i the product of valuable contribution and inight

of a large number of people who participated in it development,

writing, and review.

INDIAN BANKS' ASSOCIATION

Dr. Ramakrihnan, Chief Eecutive

Mr. K. Unnikrihnan, Deputy Chief Eecutive

M. Rema Menon, senior Vice Preident, Communication

PRICEWATERHOUSECOOPERS (PWC)

Prahant Vikram singh, sutainability-Financial Adviory service

Deekha Vat, sutainability-Financial Adviory service

Prakriti Bhatia, sutainability-Financial Adviory service

THE CLIMATE GROUP

Rajeev Palakhappa

Urvahi Devidayal

Emily Farnworth

Georgina Kenyon

Mark Kenber

PARTICIPATING BANKS

ABN AMRO

Bank of Baroda

Citibank

HDFC Bank

HsBC Bank

ICICI Bank

IDBI Bank

Union Bank of India

Ye Bank

ABOUT THE INDIAN BANKS' ASSOCIATION

IBA wa formed in 1946. Currently, IBA ha 1 49 member compriing

of public, private and foreign bank with office in India, urban

cooperative bank, developmental intitution, federation,

merchant bank, mutual fund and houing finance corporation.

More information on the IBA i available at: www.iba.org.in

ABOUT PRICEWATERHOUSECOOPERS (PWC)

PricewaterhoueCooper (www.pwc.com) provide indutry-

focued ta and adviory ervice to build public trut and

enhance value for our client and their takeholder. More than

163, 000 people in 151 countrie acro our network hare their

thinking, eperience and olution to develop freh perpective

and practical advice. In India, PwC (www.pwc.com/India) offer

a comprehenive portfolio of adviory and ta a nd regulatory

ervice. PwC ha office in Ahmedabad, Bangalore, Bhubanehwar,

Chennai, Delhi National Capital Region, Hyderabad, Kolkata, Mumbai

and Pune.

ABOUT THE CLIMATE GROUP (TCG)

The Climate Group (www.theclimategroup.org) i an independent,

not-for-profit organization working internationally with

government and buine leader to advance mart policie and

technologie to cut global emiion and a ccelerate a low carbon

economy. It global coalition of 78 leading companie, tate,

region and citie around the world recognie the economic and

environmental imperative of taking deciive action now. The

Climate Group wa founded in 2004 and ha operation in Autralia,

China, Europe, India and North America.


19/19

INDIA OFFICES

NewDelhiOffice:

The Climate Group

c/o Incube Buine Centre

Level 3, Room No. 301

18, Nehru Place

New Delhi 110 019, India

Contact: Aditi Da

[email protected]

T: +91 (0)11 3061 4613

MumbaiOffice:

Contact: Urvahi Devidayal

[email protected]

T: +91 (0)98 2150 7256

UK OFFICE

The Climate Group

The Tower Building, 3rd Floor

York Road

London sE1 7Nx

United Kingdom

GeneralEnquiries:

T: +44 (0)20 7960 2970

F: +44 (0)20 7960 2971

[email protected]

SANFRANCISCO

NEWYORKWASHINGTON,DC

CHICAGO

TORONTOLONDON

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BEIjING

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Documents

Climate Change and Finance in India 2