By actively participating in the journey towards a more sustainable future, SBI is setting a positive example and also paving the way for a more responsible and prosperous tomorrow.
MUMBAI (India CSR): State Bank of India (SBI), with its rich heritage spanning over two centuries, stands as a beacon of responsible banking for the betterment of society. The Bank’s commitment to sustainable practices is deeply ingrained in its ethos, guiding its every decision both within and beyond its operations. This commitment is not merely a statement but a concrete action plan, driven by a vision for a more sustainable future.
The ethos of the State Bank of India (SBI) is anchored in banking for the betterment of society. With a heritage spanning over two centuries, SBI continues its efforts to be the bank of choice, committed to responsible service for future generations. Central to this vision is its acknowledgment of sustainability as a key parameter that guides its journey. SBI embeds sustainability considerations in every decision it makes – within and beyond its operations. This article explores how SBI synergizes sustainability efforts within its operations and extends its impact beyond its boundaries to benefit the economy, society, and environment.
Dinesh Kumar Khara, Chairman, State Bank of India said in sustainability report 2023-24, “SBI is integrating ESG criteria in its product offerings and policy development, reducing carbon footprint by digitalisation of processes and other initiatives such as purchasing green energy and is also driving green transition in India by supporting sustainable activities while promoting economic growth.”
“Bank has an ESG Financing Framework, in alignment with the Sustainable Finance Guidelines and Principles of International Capital Market Association (ICMA), which serves as a roadmap for our bond and loan issuance programmes, ensuring that proceeds are directed towards supporting eligible activities and projects with environmental or social benefits. During the year, we successfully raised USD 250 million through green bonds, in accordance with our ESG Financing Framework.”, He added.
Sustainability: A Core Value
SBI recognizes that sustainability is not just a trend but a fundamental pillar for long-term success. It is woven into the fabric of the Bank’s operations, ensuring that every initiative aligns with its commitment to environmental stewardship, social responsibility, and good governance. This commitment is evident in the establishment of a dedicated Environment, Social and Governance (ESG) and Climate Finance Unit (CFU), tasked with charting the Bank’s course towards climate action.
Embedding Sustainability Within Operations: A Ripple Effect
The Bank’s commitment translates into tangible actions
- Shifting to renewable energy sources for its internal operations, demonstrating a commitment to clean energy.
- Developing products and services with positive environmental and social impact, ensuring that its offerings contribute to a sustainable future.
- Setting annual targets for energy efficiency initiatives and resource management, including pursuing green building certifications.
- Promoting good governance practices, prioritizing transparency, accountability, and ethical business conduct.
Dedicated ESG and Climate Finance Unit
One of the cornerstones of SBI’s sustainability strategy is the establishment of a dedicated Environment, Social, and Governance (ESG) and Climate Finance Unit (CFU). This unit is tasked with guiding the bank’s roadmap towards climate action. Its initiatives are not just about meeting regulatory requirements but also about driving meaningful change within the organization.
Commitment to Carbon Neutrality by 2030
SBI has set an ambitious goal to be carbon neutral by 2030, covering Scope 1 and Scope 2 emissions. This commitment involves significant changes in energy consumption patterns and operational efficiencies. The Corporate Centre Sustainability Committee (CCSC), headed by the Chief Sustainability Officer, is responsible for steering the bank’s sustainability vision. This committee ensures that sustainability goals are not just theoretical but are translated into actionable plans.
Renewable Energy Adoption
A significant part of SBI’s internal sustainability efforts involves switching to renewable energy sources. This transition is critical in reducing the bank’s carbon footprint and supporting the broader goal of carbon neutrality. SBI is not only focusing on its operations but is also developing products and services with a positive environmental and social impact.
Energy Efficiency and Resource Management
SBI sets annual targets for energy efficiency initiatives and resource management. This includes green building certifications that ensure new and existing buildings meet high sustainability standards. These measures are part of a broader strategy to promote good governance practices, transparency, accountability, and ethical business conduct.
SBI’s vision extends beyond its internal operations, recognizing the broader impact of its actions on the economy, society, and environment. The Bank has set an even more ambitious goal of achieving Net Zero by 2055 (Scope 1, 2 and 3), demonstrating a commitment to climate action across all its activities.
SBI’s efforts to drive sustainability beyond its walls are evident in several initiatives:
Key Facts on SBI’s Sustainability Initiatives
| Initiative | Details |
|---|---|
| Green Term Deposit | Raised for financing green initiatives, enabling the Bank to contribute directly to environmental solutions. |
| Green Portfolio Ratio Target | Aiming for a 7.5% green portfolio ratio in domestic advances by 2030, signifying a strong commitment to financing sustainable projects. |
| Green Bonds Issuance | Issuance of USD 250 million in green bonds in FY 2024, demonstrating the Bank’s dedication to sustainable financing practices. |
| Renewable Energy Investment | Investment of INR 47,418 crore in renewable energy projects, demonstrating a substantial contribution to the clean energy transition. |
| Vendor Training | Training third-party vendors on the core principles of Business Responsibility and Sustainability Reporting (BRSR), promoting sustainable practices within its supply chain. |
Prioritizing financing for renewable energy, clean technologies, and sustainable agricultural practices, ensuring that its financial resources contribute to a greener future.
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Extending Sustainability Beyond Operations
SBI’s commitment to ESG principles extends beyond its financial performance.
Vision of Net Zero by 2055
SBI’s vision extends beyond its immediate operations, aiming to achieve net zero emissions by 2055, encompassing Scope 1, Scope 2, and Scope 3 emissions. This long-term vision reflects the bank’s commitment to comprehensive environmental stewardship and responsible growth.
Green Financing Initiatives
SBI has been proactive in raising funds for green initiatives. For instance, it raised a Green Term Deposit specifically for financing green projects. The bank has also set a target of attaining a green portfolio ratio of 7.5% in domestic advances by 2030. This target aligns with global efforts to transition towards a sustainable economy.
Green Bonds and CSR Initiatives
In the financial year 2024, SBI raised USD 250 million through green bonds in accordance with the ESG Financing Framework. These funds are earmarked for projects that contribute to environmental sustainability. Moreover, SBI’s community initiatives are substantial, with INR 502.32 crore spent on community projects and 55 lakh beneficiaries from CSR activities. These initiatives underline the bank’s commitment to social responsibility and environmental sustainability.
Reducing Greenhouse Gas Emissions
SBI’s efforts to avoid greenhouse gas emissions have been commendable. In the reporting year, the bank avoided 53,394 metric tons of CO2 equivalent (MTCO2e) emissions. This achievement is part of a broader strategy to reduce the environmental impact of its operations and contribute to global climate goals.
Financing Renewable Energy Projects
The bank has also prioritized financing renewable energy projects, clean technologies, and sustainable agricultural practices. For example, SBI financed INR 47,418 crore worth of renewable energy projects, demonstrating its commitment to supporting the transition to a low-carbon economy.
Training for Third-Party Vendors
SBI recognizes that sustainability is a collaborative effort. The bank provides training to third-party vendors on the core principles of Business Responsibility and Sustainability Reporting (BRSR). This training ensures that the bank’s sustainability standards are upheld across its supply chain, amplifying its impact.
Key Facts on SBI’s Community and Environmental Impact
The Bank understands that true sustainability encompasses social responsibility and community impact.
| Initiative | Details |
|---|---|
| Community Initiatives Spending | INR 502.32 crore spent on community initiatives, demonstrating a deep commitment to social welfare. |
| CSR Beneficiaries | 55 lakh CSR beneficiaries, showcasing the Bank’s reach and impact on local communities. |
| GHG Emissions Avoided | 53,394 MTCO2e GHG emissions avoided, highlighting the Bank’s contribution to mitigating climate change. |
The State Bank of India SBI’s commitment to integrating ESG principles into every aspect of its business serves as an inspiration for other financial institutions and businesses across the nation.
(India CSR)
