The selection reinforces YES BANK’s position as a global sustainability leader in India, with strong Environmental, Social and Governance (ESG) performance. YES BANK is the first and only Indian Bank to be selected in both FTSE4Good Emerging Index and the Dow Jones Sustainability Index – Emerging Markets
MUMBAI: YES BANK, India’s fifth largest private sector Bank, has been selected as an index constituent of the FTSE4Good Emerging Index in its semi-annual review. The selection into FTSE4Good highlights YES BANK’s sectoral leadership in environmental, social and governance (ESG) performance. YES BANK was rated above the threshold for companies in Emerging markets as well as that of Developed markets, by FTSE Russell.
The Emerging Index comprises of companies selected through an assessment on over 300 data points that include;
Environmental Pillar such as climate change action, environmental footprint, and environmental supply chain
Social Pillar such as community initiatives, human rights and labour practices
Governance Pillar such as corporate governance, customer responsibility, risk management and tax transparency
These Indices are highly regarded by global investors, financial analysts and other stakeholders as a whole. YES BANK is the first and only Indian Bank to be selected in both Dow Jones Sustainability Index – Emerging Markets, and the FTSE4Good Emerging Index. The Bank has also been assigned AAA Rating by MSCI ESG Research.
The FTSE4Good Index Series is a series of benchmark and tradable indexes for investors and is based on existing international ESG standards, including the UN Sustainable Development Goals. The FTSE4Good Emerging Index, launched in December 2016, comprises companies from 20 emerging economies, including China, Brazil, South Africa, Taiwan and Russia. The selection is effective from June 19, 2017, and would be valid till the next annual review.
Owned by the London Stock Exchange Group, FTSE Russell measures and benchmarks asset classes in more than 80 countries and across 98 percent of the investable global market. In total, about $12.5 trillion in assets is benchmarked to the FTSE Russell indexes1.
In line with its Responsible Banking ethos, YES BANK has played a leading role in mainstreaming ESG practices in the banking and finance sector.
YES BANK was the first Bank in India to implement an Environment and Social Policy in 2007, and to integrate environmental, social and governance (ESG) risks into its overall credit risk assessment framework. Leading by example, the Bank raised the bar for environmental performance by becoming the first Indian bank to be ISO 14001 certified for its Environmental Management System in 2014, undertaking a commitment to achieve a minimum 10% reduction in its carbon emissions intensity through broad-level actions on a year-on-year basis.
YES BANK has also emerged as a global front-runner in climate finance. At COP21, Paris, YES BANK became the first private sector bank in India to undertake a green energy commitment of funding 5,000 MW of clean energy by 2020. In February 2015, YES BANK issued India’s maiden green infrastructure bond of INR 1000 crore (USD 160 million equivalent). As of FY17, YES BANK has one of the largest active debt and advisory portfolios in the Indian banking space, in renewable energy, water, waste management, and other climate-linked sectors.
Using CSR as a vehicle for contributing to India’s Sustainable Development Goals (SDGs), YES BANK has pursued innovative, replicable and scalable CSR models focused on creating a positive impact through multiplier effect. In FY17, the high-impact, innovative CSR projects, targeted key SDGs such as climate action, clean water and sanitation, good health and well-being, sustainable cities and communities, among others, touched more than 50 million lives.
YES BANK has been instrumental in benchmarking Triple Bottom Line accounting and reporting in India. YES BANK was the first Indian bank to release a Sustainability Report on the GRI G4 accounting platform, and in FY15-16, became the first to release the report based on the Integrated Reporting guidelines of the International Integrated Reporting Council. The Bank constantly expands the disclosures it makes and the information it reports with a view to provide the most comprehensive account of its business practices to all stakeholders.
On being included in the global ESG Index, Rana Kapoor, Managing Director and CEO, YES BANK, said, “Since becoming the first Indian Bank to be included in the DJSI – Emerging Markets Index in 2015, and being rated AAA by MSCI ESG Research in 2016, the inclusion in the prestigious FTSE4Good Index is the third global recognition of YES BANK’s industry-leading focus on ESG performance. The listing highlights YES BANK’s unmatched commitment to go beyond its fiduciary responsibilities and set benchmarks in climate and environmental action, community impact, and corporate governance & risk management, towards building India’s Finest Quality Big Bank by 2020.
Namita Vikas, Group President and Global Head Climate Strategy and Responsible Banking, YES BANK, said, “ESG compliance is emerging as a key parameter for assessing institution risks and opportunities, globally. Staying ahead of the curve, YES BANK has made environmental, social and governance performance a cornerstone of its business practices by integrating sustainability deep into business strategy – a fact highlighted by our inclusion in the FTSE4Good Index.”
Commenting on the selection of YES BANK into the Index, FTSE Russell said, “FTSE Russell confirms that YES BANK has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.”
FTSE Russell is a leading global index provider creating and managing a wide range of indexes, data and analytic solutions to meet client needs across asset classes, style and strategies. Covering 98% of the investable market, FTSE Russell indexes offer a true picture of global markets, combined with the specialist knowledge gained from developing local benchmarks around the world.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $12.5 trillion is currently benchmarked to FTSE Russell indexes1. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create investment funds, ETFs, structured products and index-based derivatives. FTSE Russell indexes also provide clients with tools for asset allocation, investment strategy analysis and risk management.