Partnership supports the Bank’s low-carbon transition strategy by bringing a globally recognised framework to its lending and investment portfolio emissions.
MUMBAI (India CSR): IndusInd Bank Limited has joined the Partnership for Carbon Accounting Financials (PCAF), a global collaboration that enables financial institutions to measure and disclose greenhouse gas (GHG) emissions associated with their financial activities. The move strengthens the Bank’s sustainability strategy and its efforts to measure, manage and disclose emissions connected with lending and investment decisions. It also signals a more structured approach towards understanding climate-related risks, identifying decarbonisation opportunities and supporting India’s transition to a low-carbon economy.
PCAF provides financial institutions with a harmonised methodology to assess financed emissions. These emissions generally arise from the activities of borrowers, investee companies and financed assets. They are widely recognised under Scope 3, Category 15 emissions accounting. With more than 750 participating financial institutions worldwide, PCAF has emerged as a leading global framework for accounting and disclosure of financed emissions.
A Significant Step in IndusInd Bank’s ESG Journey
IndusInd Bank said that it is committed to integrating environmental, social and governance (ESG) considerations into its business strategy and risk management processes. Its decision to join PCAF is expected to enhance transparency in climate-related reporting and help create a credible, consistent baseline for carbon emissions linked to its financial portfolio. For banks, operational emissions are only one part of the climate equation. A larger share of their climate footprint can be associated with the businesses and projects they finance. This makes financed-emissions measurement increasingly important for responsible lending, sustainable finance and long-term climate-risk management.
By adopting the PCAF methodology, IndusInd Bank can develop a more systematic view of emissions across its lending and investment portfolio. The framework may also help the Bank identify sectors where engagement, financing innovation and transition support can create greater climate impact.
Why PCAF Matters for Financial Institutions
PCAF brings common measurement principles to a field where data availability, sectoral differences and calculation methods can otherwise make comparisons difficult. The framework helps participating institutions estimate and disclose the emissions associated with their financial activities in a transparent manner.
For IndusInd Bank, this could support several practical actions:
- Establishing a financed-emissions baseline across relevant portfolios.
- Improving the quality and consistency of climate-related disclosures.
- Identifying high-emission sectors and potential decarbonisation pathways.
- Strengthening climate-risk assessment in lending and investment decisions.
- Supporting clients as they adopt lower-carbon technologies and business models.
- Building future sustainable-finance products around credible emissions data.
The partnership is therefore not merely a reporting exercise. It can help link climate data with portfolio strategy, customer engagement and responsible capital allocation.
Supporting Decarbonisation Across Sectors
IndusInd Bank has been advancing its sustainable finance agenda through financing in renewable energy, energy efficiency, sustainable infrastructure and other climate-positive sectors. Joining PCAF is expected to add a stronger measurement foundation to these efforts. A clear financed-emissions framework can help a bank understand where capital is contributing to carbon-intensive activity and where financial support can enable transition. This is particularly relevant in India, where industries, infrastructure providers, small and medium enterprises, transport operators and energy businesses are navigating both growth requirements and the need for cleaner technologies.
The Bank aims to use the PCAF methodology to identify decarbonisation opportunities across sectors and support customers in moving towards lower-carbon business models. Such support may include financing for clean energy, energy-efficient equipment, sustainable mobility, green buildings and climate-resilient infrastructure.
Greater Transparency in Climate Reporting
Climate disclosures are becoming increasingly important for investors, regulators, customers and communities. Stakeholders now expect financial institutions to explain not only the sustainability of their own operations but also how climate considerations influence their financing decisions. IndusInd Bank’s participation in PCAF can improve the credibility of its future disclosures by using a globally acknowledged methodology. It can also support better internal decision-making as the Bank evaluates the climate profile of its portfolio.
For the broader banking sector, voluntary adoption of recognised accounting frameworks can encourage a more transparent and comparable approach to financed-emissions reporting. It may also help accelerate dialogue between banks and borrowers on practical transition plans.
A Growing Role for Sustainable Banking
India’s financial sector has a major role in enabling climate action. Banks can direct capital towards renewable energy, resource efficiency, green infrastructure and emerging clean technologies. At the same time, they can help existing businesses transition gradually by supporting investments that reduce emissions while protecting jobs, competitiveness and economic resilience. IndusInd Bank’s decision to join PCAF reflects this evolving role of banking. The Bank is positioning climate measurement as an important part of its ESG and risk-management journey, while continuing to serve a wide range of customers, including retail borrowers, SMEs, corporates, government entities and public sector organisations.
As of June 30, 2026, IndusInd Bank served around 42 million customers through 3,137 branches and banking outlets, along with 2,853 ATMs, reaching 1.60 lakh villages across India. Its offerings include microfinance, personal loans, cards, SME loans, digital banking, vehicle financing, affluent and NRI banking, and ESG-linked financial products. With its PCAF membership, IndusInd Bank has taken a meaningful step towards bringing greater accountability and climate intelligence to financial decision-making. The real impact will now depend on how effectively financed-emissions data is integrated into portfolio management, customer engagement and the Bank’s long-term sustainable-finance strategy.
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