Indian Banks Ill-Prepared for Climate-Linked Financial Risks, Warns Report
A recent report by Climate Risk Horizons reveals that Indian banks are largely unprepared to integrate climate-related risks into their operations, despite growing financial stability concerns.
While some banks have made progress in emissions disclosure and climate risk management, most lack comprehensive climate strategies and green finance portfolios.
With climate change posing increasing risks to financial stability, Indian banks remain largely unprepared to fully integrate climate-related risks into their operations, said a report by Climate Risk Horizons.
The “Unprepared” report by Climate Risk Horizons (CRH) assessed 35 banks largest scheduled commercial banks in India by market capitalisation on the Bombay Stock Exchange (BSE), with a combined market cap of Rs 4,582,292 crore as on March 2024.
Out of these 35 assessed banks, 11 are public sector banks, 18 are from the private sector, and six are small finance banks.
The report says that only a handful have made meaningful progress in areas like emissions disclosure, climate risk management and coal divestment.
As per the report, only seven banks disclose all scope 1, 2 and 3 emissions, leaving major gaps in transparency and accountability.
