Kotak Mahindra Bank

The financial institution ensures a gender balance (40-60%) at the senior executive level and assigns oversight of its sustainability strategy to the highest governance body. Moreover, the implementation of its sustainability strategy is delegated to internal functions, teams, or committees. The financial institution discloses its membership in trade associations and monitors its emissions, including Scope 1-2 and Scope 3 categories by category. Finally, it reports the monetary amount or share of products, services, and capital provided to women-owned businesses and small- and medium-sized enterprises.

The financial institution has a publicly available policy statement committing to respect specific workers’ rights but has the opportunity to reference all ILO fundamental rights at work. It should also disclose how it determines a living wage in its operational regions and include anti-bribery and anti-corruption clauses in its contracts.

While identifying material sustainability impacts across its value chain, the financial institution could provide more detail on its prioritisation process for these impacts through using objective criteria. Moreover, linking senior executive remuneration to sustainability targets is also recommended, along with disclosing a group-level stewardship policy that supports environmental transitions and social best practices. Although engagement with certain trade associations is disclosed, specific actions aligning lobbying with sustainability strategy could be further detailed by the entity.

The financial institution provides products and services that support climate adaptation but could be more intentional in its disclosures regarding these provisions. Furthermore, establishing a transition plan for its operations, supply chain, and portfolio is recommended, as is disclosing scope 1-3 emissions reductions in line with interim targets.

Further recommendations include providing a breakdown of clients by income group and processes to avoid divestment from low-income countries should be disclosed. Moreover, their risk assessment process should include risks associated with ILO fundamental rights, with a mitigation process for identified risks. Finally, identifying social risks related to the net zero transition and providing examples of actions taken on salient human rights issues in the last three years is recommended.

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.