HDFC Bank

HDFC Bank assigns decision-making and oversight responsibility for its sustainability strategy to the highest governance body. Responsibility for implementing the sustainability strategy is delegated to specific functions, teams, or committees within the institution. The financial institution specifies that it does not make political contributions.

The institution discloses a publicly available policy statement committing to respect human rights and actively monitors its Scope 1-2 emissions. It discloses the amount and/or share (in monetary terms) of products, services, and capital provided to groups typically excluded, as defined by the institution itself. Additionally, it provides details on the amount and/or share of products, services, and capital allocated to small- and medium-sized enterprises, as well as to low-income and lower-middle-income countries.

HDFC has a materiality assessment which identified 16 sustainability topics, however, there is no objective criteria for impact identification. Recommendations include disclosing third-party assurance for target reporting and linking senior executive remuneration to sustainability targets. An engagement strategy for assessing sustainability risks with large clients exists, but alignment with the sustainability strategy is unclear. Membership in trade associations is disclosed, though not exhaustively, and there is no commitment to avoid adverse sustainability impacts through lobbying. Loans to coal and ignite represent 1% of the total portfolio, but the relationship to all fossil fuels is unclear. There is no disclosure of financed emissions as of 2024, and while scope 3 emissions are monitored, additional categories could be included. Recommendations also include detailing the methodology for footprint calculations and establishing a transition plan. The company has a publicly available policy statement regarding forced labour, child labour, and discrimination but does not commit to all four fundamental rights at work as declared by the ILO. It requires suppliers to respect these rights but lacks a comprehensive commitment. Moreover, there is no statement by HDFC Bank that discloses a processes to avoid divestment from low-income countries

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.