Indian Banks Unprepared for Climate-Related Financial Risks: Climate Risk Horizons Report
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Climate Change: A Growing Risk for Indian Banking Sector A new report titled "Unprepared" by Climate Risk Horizons (CRH) has raised red flags about the Indian banking sector's readiness to tackle climate-related financial risks. As the effects of climate change escalate globally, banks in India are significantly lagging behind in integrating these risks into their core business strategies, lending practices, and disclosures. Scope and Scale of the Study The report assessed 35 of India’s largest scheduled commercial banks by market capitalisation as of March 2024. These included: 11 public sector banks 18 private sector banks 6 small finance banks Collectively, these banks account for a combined market capitalisation of ₹4,582,292 crore , representing a major portion of India’s financial system. Key Findings: Gaps in Climate Preparedness Emissions Disclosure Deficit: Only 7 out of 35 banks disclosed all three categories of greenhouse gas emiss...