HDFC Bank to turn carbon neutral by 2031-32

Private sector lender HDFC Bank plans to turn carbon neutral by 2031-32 and will reduce its emissions, energy, and water consumption. “The bank will continue to incorporate and scale up the use of renewable energy in its operations,” it said in a statement on Thursday.

As part of its ESG strategy, it will also focus on offering loans for green products like electric vehicles at lower interest rates and incorporating ESG scores in its credit decisions. Additionally, it is working on a framework for issuing green bonds.

When asked about the plan to offer loans at lower interest rates for electric vehicles, Ashima Bhat, Group Head - CSR, Business Finance and Strategy, Administration and Infrastructure, HDFC Bank said the proposal is being evaluated.

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“We have to see the introduction of electric vehicles in the market. Products are in the works, but there has to be a demand as well,” she said, adding that there is expectation that they will be introduced in a large way but it may be done in two to three years’ time.

As a part of its strategy to turn carbon neutral, HDFC Bank is also looking at other initiatives such as decreasing absolute emissions and energy consumed in line with current level of 3,15,583 MT CO2 emissions and increase rooftop solar capacity in large offices. It also plans to convert 50 per cent of its total sourced electricity to renewable energy, create single use plastic free corporate offices, plant 25 lakh trees and reduce water consumption by 30 per cent.

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