Axis Bank

The financial institution assigns decision-making and oversight responsibility for its sustainability strategy to the highest governance body while implementation responsibility is delegated to various functions, teams, or committees. It discloses the amount or share, in monetary terms, of products, services, and capital provided to small and medium-sized enterprises. However, no leading practices were identified for the financial institution with regard to Financing Climate and Nature protection and restoration, Environmental footprints, and Responsible business conduct.

The financial institution has a publicly available policy statement committing to respect specific workers’ rights and expects suppliers to do the same, with an opportunity to reference all ILO fundamental rights at work. It includes anti-bribery and anti-corruption clauses in its contracts with business relationships but does not specify the consequences of breaching these clauses.

While the institution identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence used in its materiality analysis. Furthermore, it could link performance criteria for remuneration at the senior executive level to specific sustainability targets and disclose a comprehensive list of trade associations of which it is a member. Although the institution has a time-bound strategy to phase out the provision of products, services and capital to existing fossil fuel projects and clients and investees across the fossil fuel value chain, which lack a well-defined strategy aligned with a 1.5°C trajectory, it is not covering all fossil fuels.

It is recommended that the institution disclose the breakdown of clients or beneficiaries by income group and clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Its risk assessment process should incorporate risks related to ILO fundamental rights at work for those affected by its products and services, with a mitigation process for identified risks. Moreover, the institution could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.