Federal Bank’s robust ESG strategies, set by the Board, are closely aligned with our Bank’s risk appetite and ESG roadmap. We have committed to several ESG targets in the medium and long term, and our progress is closely monitored by the Board and transparently conveyed to external stakeholders. The core values framework encompasses all three pillars of ESG.
We follow a top-down approach starting at the Board level, for setting our ESG strategies. The Board has set qualitative risk appetite for climate risk and also the ESG roadmap as part of the Business Strategy. These are reviewed on an annual basis based on the prevailing economic, social, and regulatory expectations and the best practices observed across the peers.
Our ESG journey is driven by strong commitments and transparent disclosures. Thus, we have made several medium-term and long-term commitments on various ESG parameters. The Board closely tracks the performance against each of these commitments and also discloses the same to external stakeholders.
The Bank has also put in place suitable policies that enable the ESG journey in alignment with the commitments made. The Risk Management Committee (RMC) of the Board is entrusted with the responsibility of monitoring the ESG and climate risk management initiatives of the Bank. An executive-level ESG Committee headed by the MD & CEO oversees the implementation of ESG-related policies and reviews the performance against the ESG commitments. The ESG committee guides the implementation of the Board-approved policies and ensures that the same is integrated seamlessly across functions. The Bank is also in the process of assessing the portfolio emissions and developing a decarbonisation roadmap for its operations.
Details of the ESG initiatives/goals undertaken by the Bank during the Financial Year are included in the Business Responsibility and Sustainability Report.