ICICI Bank has provided loans amounting to ₹556 billion (~$6.7 billion) to sectors like renewable energy, electric vehicles, and green-certified real estate, among other important lending areas in the fiscal year 2023.

In its Environmental, Social, and Governance (ESG) Report, ICICI Bank said the portfolio dedicated to green financing constituted 21.4% or ₹119 billion (~$1.4 billion) of the total amount lent.

The bank also subscribed to India’s inaugural issue of sovereign green bonds during fiscal 2023.

ICICI Bank has a dedicated green financing portfolio, ascertained under its Framework for Sustainable Financing.

The ESG report said the bank had embraced areas like renewable energy, green hydrogen, electric mobility, sustainable buildings, and water security in line with government initiatives.

The bank’s support extended to capacity creation in eco-friendly domains, including renewable energy and electric vehicles.

Among other sustainable initiatives, ICICI Bank said it had constructed green workplaces that adhere to the rigorous standards set by the Indian Green Building Council (IGBC).

A total of 28 new sites covering 2.87 million square feet received IGBC certification in fiscal 2023.

ICICI Bank said it had utilized 17.08 million kWh of renewable energy in fiscal 2023, accounting for 9% of its total energy consumption.

The ESG report said the bank had also opted for green tariffs from distribution companies in Maharashtra and Telangana.

Source: ICICI Bank

Recently, parliament’s standing committee on energy asked the government to explore the possibility of prescribing renewable finance obligations along the lines of renewable purchase obligations for banks and financial institutions to make them invest a specific percentage of their lending in the Indian renewable energy sector.

While there is a positive momentum towards sustainability in supply chain finance as more banks are utilizing ESG rating services in trade finance transactions, finds UK-based finance platform Demica. However, the survey said banks based in India were less likely to prioritize ESG in the near future, with only 20% stating that it was expected to be a significant area of focus.

The Economic Survey 2022-23 tabled in Parliament on the eve of the Budget said India would require tens of trillions of U.S. dollars in investments to achieve net-zero emissions by 2070.