YES BANK – Financing the Future

Namita Vikas,Senior President & Chief Sustainability

Officer, YES BANK

• India ranked 13 on climate Vulnerability Index

• IPCC AR5 on India:– Agricultural sector would be hit worst – Rainfall puts millions of lives at stake– Adaptation, Mitigation and Resilience key

• Currently India gearing up climate action:– Commitments to achieve 175 GW Renewable

Energy by 2020– Deployment of Green Climate Fund

India Story!

Climate Finance - Advocacy

Renewable Energy

ESG

Ministries and multi-

laterals

Thought Leadershi

p

• Low carbon industry growth in India

• E-waste management in India – The corporate imperative

• Enabling finance for scaling up energy efficiency in MSMEs

• Increasing RE investments in India

• Advising on INDCs for ‘COP21’

• US India Clean Energy Fund • India GHG program

• Voluntary Responsible Finance Guidelines for the Indian Banking industry

• India Advisory Council of the UNEP Inquiry

• Separate Sectoral limits• Inclusion in Priority Sector

Lending• Exclusion from Single/Group

borrower limits• Establishment of Sovereign

Renewable Energy funds• Climate Finance Task force

to increase Renewable energy investments

Climate Finance - Action

Renewable Energy

ESG

Innovation

Internal action

•Partial risk guarantee fund for socially/environmentally impactful enterprises

•Participation in Green Climate fund

•Energy efficiency in MSMEs – Energy audits and exploring financing opportunities

•YES COMMUNITY

•Environmental Management Policy

• ISO 14001:2004

• INR 10 bn Green Bond•Target 5 GW funding

•Environmental & Social framework

•Sustainability Series • Industry training•Employee training

“Sustainability Zone”

Combined economic, social and environmental benefits

Pure Philanthropy

Pu

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Responsible Banking: A differentiated approach

Link CSR and sustainable development with stakeholder value creation

through innovative solutions and servicesWeave sustainability principles into YES BANK’s core business

strategy and processes

Vision

Mission

Deliverables

YES BANK - Be the benchmark financial institution for inclusivity and sustainability”

Responsible Banking

Deliver internal and external positive socio-environmental impact

Enhance YES BANK’s influence in CSR and sustainability space

Proactive investments for environmental & social outcomes

Impacting environment & society through innovative solutions

Internalizing sustainability in core operations

Responsible Banking - Approach

Proactive investments for environmental & social outcomes

Evolution of Renewable Energy Financing at YES BANK

September 2014 - 500MW annually January 2015 -

5 GW over next 5 years

January 2015 - INR 10 bn Green bonds

This financial year, we have already achieved 1100 MW exposure to Renewable energy projects

• First bank to sanction facilities of $33 million(~24.8 million Euros) to the project

• Electricity for 624,000 households

• Offset 216,372 tons of CO2

emissions annually

• Create livelihoods and provide services to BoP

Welspun Neemuch - Largest solar PV Project - 151 MW capacity

YES SAHAJ•Cost effective & scalable Mobile transaction solution—Micro-ATM model

YES LEAP•Credit, saving & insurance facilities to SHGs through NGOs acting as Business Correspondents of Bank

YES KISAN DAIRY PLUS•Instant payment services to milk vendors through the dairy acting as a BC

Inclusive & Social

Banking

• Approximately 1.28 mn unique senders• INR 32 bn worth transactions in FY2013-14

•Brought financial services to rural households• INR 2.96 bn worth transactions in FY2013-14•Extended Financial Inclusion to over 0.53 mn households• INR 270 mn in savings linked SHGs & INR 650 crores in credit linked SHGs•Immense scaling opportunity as 60% of farmers are using the instant payment services

IMPACT

Impacting environment & society through innovative solutions

YES MONEY•Remittance service for unbanked & under-banked population of India

10

Project 2

Project 2

Project 3

Project 1

10

For all projects

Compliance to Exclusion List (Annexure I of ESP) and Host Country Regulations

Projects exceeding USD 5 million

Compliance to Exclusion List, Host Country Regulations and applicable IFC Performance Standards

Internalizing sustainability in core operations

ISO 14001 certification

Environmental & social policy

Lack of awareness

Lack of ownership from branch staffHuge branch network

Regular communicationAwareness sessions

Individual energy audits

Training to branch staff

Challenges

Opportunities

First Indian bank to get ISO 14001:2004 certification

Encouragement for Climate actionto non-state players

•Internalizing the externalities•Positive incentivization through Policy

•Monetization & Minimization •Integrated reporting

World:

•Decipher climate action at local level

•National Adaptation Fund•Single window clearances – fast track projects

•ESG risk guidelines

India:

Thank You