Most Indian banks fail when it comes to policies on environment and human rights and this inaction leaves the Indian banking sector vulnerable to investment risks that arise due to climate emergencies, according to the first edition of Fair Finance Guide India scorecard.
The scorecard is an assessment of policy disclosures of a sample of eight banks – State Bank of India, Federal Bank, Punjab National Bank, Bank of India, Indian Overseas Bank, IDFC Bank, HDFC Bank, and YES Bank.
As per the scorecard, three out of eight Indian banks scored high on parameters of financial inclusion and corruption. However, seven out of eight banks scored zero on the themes of climate change and environment. The banks also scored poorly on the themes of labour rights and human rights.