The The Rise of Green Finance in India: How Public and Private Banks are Leading the Way

Abstract

This study investigates how Indian Banks have incorporated Environmental, Social
and Governance (ESG) criteria into their business models. It provides overview of
the different options that banks in India are pursuing in relation to ESG criteria
and provides insight into what position banks are taking with respect to adopting
ESG Framework. This research investigates and compares how both public and
private banks are performing against ESG metric and their comparative ability to
implement green finance initiatives. The methodology used in this research is based
on a comparative analysis of green finance and Sustainability Initiatives, a review of
ESG Reports, Sustainability Reports and the associated ESG information available
on Indian banks’ websites - the quantitative data from this research will be available
for examining the challenges and opportunities of integrating green finance
within Indian Banking. The research identifies both challenges and opportunities
of integrating green finance and gives insight into how Indian banks view green
finance as a key strategic priority. The support received from the RBI and SEBI
through regulations has expedited the process of adopting ESG practices. However,
due to a lack of knowledge about such products, people have not participated in
enough numbers. Therefore, the inclusion of ESG must be done proactively to obtain
a competitive advantage to meet India’s Net Zero 2070 aspirations. Consequently,
this research provides insights for banks, regulators and policymakers to enhance
the green finance strategies, increase ESG integration and use technology to create
transparency and increase efficiency in the financial system.