ICICI Bank aims to become carbon neutral by FY 2032

Mumbai: ICICI Bank has committed to becoming carbon neutral in Scope 1 and Scope 2 by fiscal 2032, as outlined in its Environmental, Social, and Governance (ESG) report for 2023-24. The report emphasizes the Bank’s diverse initiatives, including efforts to mitigate environmental impact, promote inclusive growth for underprivileged communities, adhere to responsible lending practices, and maintain high standards of corporate governance. These efforts reflect the Bank’s overarching commitment to building a sustainable future within its ESG framework.

Mr. Sandeep Batra, Executive Director at ICICI Bank, said, “It gives me immense pleasure to present the fifth annual Environmental, Social, and Governance report of ICICI Bank and share our ongoing commitments and achievements in the journey towards building a sustainable organisation. The key tenets of ‘Fair to Customer, Fair to Bank’ and ‘One Bank, One Team,’ with the right balance of risk and compliance principles, are helping deliver on our strategy of responsible growth.”

Environment

ICICI Bank’s environmental initiatives are marked by significant milestones. The Bank quadrupled its renewable energy consumption in its own operations, reaching 7.57 crore kWh in fiscal 2024 compared to 1.7 crore kWh in the previous year. Solar capacity installed across rural schools also saw notable growth, with 1,950 kW added in 770 schools in fiscal 2024, bringing the total solar capacity to 9,970 kW across 3,180 schools since fiscal 2022. These initiatives contributed to a 15.7% reduction in Scope 1 and Scope 2 emissions during fiscal 2024. Additionally, water conservation efforts led to an annual water harvesting capacity of 2580 crore liters, benefiting 6,800 schools and restoring 1,180 water bodies. The Bank has also planted 37 lakh trees since fiscal 2022, including 11 lakh in fiscal 2024, and saved 2.75 crore A4-sized papers through paper-saving initiatives.

The Bank’s long-term vision for sustainability is reflected in its plan to achieve carbon neutrality by fiscal 2032. Strengthened climate risk management is a critical focus, with ICICI Bank introducing sectoral analysis for hard-to-abate sectors, expanding its ESG risk assessment tool to cover more sectors, and integrating ESG evaluations into credit assessments for large corporate lending proposals above a certain threshold. As of March 31, 2024, ICICI Bank’s outstanding sustainable financing portfolio reached ₹68,528 crore, with the green financing component standing at ₹19,366 crore, of which approximately 50% is directed towards renewable energy projects.

“In fiscal 2024, we continued our efforts towards reducing the Bank’s emissions from our own operations by adopting more green power. The steady progress in integrating sustainable practices into our operations gives us the confidence to set the goal of becoming carbon neutral in Scope 1 and Scope 2 emissions by fiscal 2032.”Mr Batra added

Social

On the social front, the Bank’s initiatives have significantly improved lives across rural India. Through its philanthropic arm, ICICI Foundation, the Bank has positively impacted over 1.28 crore individuals by providing affordable healthcare, supporting rural livelihoods, and driving societal development. Empowerment of women through Self-Help Groups (SHGs) has also been a priority, with 1 crore women supported since inception, 70 lakh of whom benefited through societal development interventions in fiscal 2024 alone.

ICICI Foundation’s healthcare initiatives in fiscal 2024 focused on enhancing curative care, including cancer care, cardiac care, eye care, and emergency services. These programs have provided treatment to over 21 lakh individuals across 500 hospitals, ensuring access to critical healthcare services in underprivileged regions. Additionally, the Foundation’s work in rural livelihood development has enabled more families to achieve financial stability through targeted programs like seed bank development, livestock management, and agricultural support.

Governance

ICICI Bank’s governance framework is designed to maintain regulatory compliance while upholding high standards of business ethics and risk management. The Bank’s governance structure includes ten committees to oversee critical operations, with independent directors chairing and constituting a majority in most of these committees. The Bank’s Personal Data Protection Standard further ensures the security of customer information, reinforcing trust and transparency in its operations.

In line with its governance principles, ICICI Bank has continued to integrate ESG considerations across its core activities. The Bank’s ESG risk assessment tool has been expanded to cover additional sectors, and ESG assessments are now integrated into credit evaluations for large corporate lending proposals. As of March 31, 2024, ICICI Bank’s outstanding sustainable financing portfolio grew to ₹68,528 crore, with a significant portion allocated to green financing.

The ICICI Foundation’s commitment to environmental sustainability is exemplified by its conservation projects, including work in 53 forest reserves across 19 states. These efforts, such as tree plantations, water structures, and solar installations, have directly benefited over 20,000 individuals. These comprehensive initiatives, coupled with robust governance practices, position ICICI Bank as a leader in integrating ESG principles into its operations.

The ESG Report and Business Responsibility and Sustainability Report for fiscal 2024 provide comprehensive insights into the Bank’s journey towards creating shared value for all stakeholders and driving long-term sustainable growth.