Sustaining and Innovating Environmental Stewardship
Responsible banking is one of the core values of ESAF Small Finance Bank. Through banking, we recognise the need to serve the community and positively contribute to the environment. We are driven by an environment-conscious mindset and support projects with minimal or no adverse environmental impact. By promoting green business practices and refining internal operations, the Bank recognises the need for a dedicated approach towards the environment to reduce the impact caused by human interference. Through the Bank’s environmentally responsible products and services, we have been able to create a safety-focussing net to protect the environment and contribute to the Sustainable Development Goals (SDGs).
Green Portfolio
Green Wheels
Responsible banking is one of the core values of ESAF Small Finance Bank. Through banking, we recognise the need to serve the community and positively contribute to the environment. We are driven by an environment-conscious mindset and support projects with minimal or no adverse environmental impact. By promoting green business practices and refining internal operations, the Bank recognises the need for a dedicated approach towards the environment to reduce the impact caused by human interference. Through the Bank’s environmentally responsible products and services, we have been able to create a safety-focussing net to protect the environment and contribute to the Sustainable Development Goals (SDGs).
Clean Energy
We have introduced clean energy products such as Clean Energy Product Loan to create a greener future. The loan can be used for the purchase of solar-based power generators, biomass-based power generators, non-conventional energy-based public utilities.
Green Partnership
The Bank realises that green initiatives cannot succeed in isolation. Collaborative green partnerships with like-minded individuals and organisations are essential to maximise their impact.
On 23rd February 2023, ESAF Bank signed an MoU with V-Guard Industries Ltd. to offer financing solutions to customers interested in installing V-Guard's solar rooftop power system. As per the agreement, ESAF Bank will offer a range of financing choices, such as loans and appealing instalment payment schemes, to support the installation of solar rooftop power systems.
Green Banking Practices
Digital Banking
More than 85% of our savings accounts are opened through digital channels. The Bank focuses on the adoption of tablet-based account openings as opposed to traditional paper-based methods. Additionally, to minimise paper consumption and decrease waste generation, customers are encouraged to utilise Android-based mobile banking, WhatsApp Banking, and Net Banking services.
Adoption of E-Signature for Loan Processing
In our ongoing efforts to nurture an ESG culture, a key milestone achieved during FY 2022-2023 was the implementation of E-signature technology for disbursing micro loans. This initiative was launched in December 2022. We have successfully disbursed over five lakh loans using E-signature. This accomplishment stands as a testament to our dedication to digital innovation and further strengthens our position in the ongoing evolution of banking practices.
Potential Impact
Industry experts estimate that 10,000 trees are typically needed to produce 1 tonne of paper. About 50% of paper can be saved through E-signature adoption for processing micro loans and around 4 sheets of paper can be saved per loan. As on 31st March 2023, 5,27,423 loans were disbursed through E-signature. To put this into perspective, we have effectively saved 2 tonnes of paper, preventing the need to cut down approximately 20,000 trees.
Reduction in the use of paper has not only reduced deforestation but has also helped in water conservation. A study says that 2,700 litres of water is used to produce 1 tonne of paper. By decreasing our reliance on paper, we have made a substantial impact on water productivity. Specifically, by adopting E-signature, we have conserved 5,400 litres of water.
Green Procurement and Conservation
The Bank is steadfast in its commitment to green procurement practices. Across all our offices nationwide, we diligently manage our environmental impact by adopting energy-efficient electrical appliances. The procurement team ensures that every air conditioner and fan installed in our offices are Energy Star appliances to minimise electricity consumption. Moreover, we exclusively use energy-efficient LED lights throughout our offices. ,
In addition to energy efficiency, water conservation is a top priority for us. To achieve this, dual flush options have been installed in all office restrooms. These dual flush buttons allow users to adjust and minimise the volume of water used for flushing.
ESG Grading
The Bank has undergone an ESG grading process conducted by Care Edge Research. Against the industry average of 59%, the Bank has secured a commendable score of 71%, emerging as a frontrunner in Environmental, Social, and Governance (ESG) practices.
For the environmental pillar, the Bank received a score of 62% due to its adoption of green protocols and green branch practices, and for its decisive ESG roadmap focused on excelling in Sustainable Development Goals (SDG) impacts, fostering local sustainable economic growth, ensuring food and water security, and promoting energy security.
Furthermore, the Bank is aligned with net-zero targets through its commitment to green finance and environmentally conscious initiatives. Notably, even in vulnerable and remote locations, the Bank has introduced E-onboarding and E-signature processes for microloans, which has led to substantial savings in both paper and water resources.
The Bank received a score of 68% in the social pillar for its healthy labour management practices, robust employee engagement initiatives and the promotion of a gender-inclusive workforce, with one in every three employees being a woman. Also, the Bank’s CSR contribution of 5 % exceeds the government mandate and enables community transformation through our innovative products and initiatives.
The Bank achieved a score of 76 % in the governance pillar for its board governance and disclosure. On a grading scale of 1 to 7, the Bank secured a rating of 3.
ESAF Green Salute Awards
ESAF Bank takes pride in its commitment to environmental sustainability and recognises the outstanding efforts of its branches and departments through the ESAF Green Salute Awards.
Green Branch Award
Branches that demonstrate exceptional performance in maintaining a green portfolio and adhering to green protocols are honoured with the Green Branch Award.
Green Department Award
Within the corporate office, departments are acknowledged with the Green Department Award. These awards are bestowed upon departments that excel in the green department audit and have taken proactive initiatives to instil sustainability values into their operational functions.
Green Cluster Award
Clusters comprising branches that exhibit outstanding performance in maintaining green portfolios and adhering to green protocols are recognised with the Green Cluster Award.
Green Business Awards
Green Business Awards are presented based on the performance in promoting green business by disbursing maximum green products.
ESAF Bank Environment Week
As a social bank, our dedication extends beyond serving the unserved and underserved communities; we are also deeply committed to environmental conservation. ESAF Bank actively organises initiatives that play a vital role in preserving the environment and ecosystems. Each year, we observe Environment Week, and in the fiscal year 2022-23, it took place from 5th June 2023 to 9th June 2023.
A few of the initiatives organised as part of Environment Week 2023 are:
Break the Plastic Prison
A 10-day campaign, Break the Plastic Prison, was launched as a joint initiative of the departments of Branding and Communications, AIP, and Sustainable Banking, in partnership with SARG and ESAF Foundation.
The campaign aimed to collect plastic and E-waste from employees, promoting a plastic-free environment both at the workplace and at home. During the campaign period, we successfully gathered nearly 85 Kg of plastic and E-waste, thanks to the active participation of our dedicated staff and the valuable contributions from everyone including top management personnel like Shri. K. Paul Thomas MD and CEO, ESAF Small Finance Bank and EVPs of the Bank.
The collected waste was responsibly disposed of through the Municipal Corporation’s Haritha Karma Sena and a vendor of ESAF. The campaign was an effort to encourage the staff to stop using harmful plastic and switch to a greener alternative thereby making a positive environmental impact.
The Joy of Celebrating Renewable Energy Through Solar Installations at Schools
As a part of the CSR initiatives of the Bank, Solar Panels were installed in seven schools in Thrissur, Kerala. These installations collectively constituted a capacity of 35 KW. These were handed over to the schools on World Environment Day by various senior officials of the Bank.
VPM SNDP, Kazhimbram.
HCC GUPS, Cherlayam.
Vanivilasam UP School, Padoor
AUPS, Marottichal
UP School, Thrithallur
CNN Boys HS, Cherpu
Vivekodayam BHS, Thrissur
Employee Engagement Activities
During Environment Week, the SARG team of HR initiated a 21 Day Challenge to #BeatPlasticPollution. This challenge served as a unique employee engagement opportunity, encouraging staff to adopt various practices aimed at combating plastic pollution within the community. The EVPs motivated the employees to actively participate in this initiative through heartfelt video messages.
VPM SNDP, Kazhimbram.
VPM SNDP, Kazhimbram.
VPM SNDP, Kazhimbram.
VPM SNDP, Kazhimbram.
Commemoration of UN Days
As a socially conscious bank, we understand that dedicating only one day to environmental conservation is not enough. We strongly believe that it is crucial for all to take on the role of environmental stewards.
Apart from Environment Day, we also recognise and observe UN Days that are dedicated to environmental conservation. Here is a glimpse of some of the many programmes conducted annually:
Water Day
Thanneer Pandal at ESAF Bhavan
To quench the thirst of passers-by during the summer, we set up a refreshment stall in front of our corporate office, serving buttermilk and water.
Plastic Bag Free Day
ESAF Bank observed Plastic Bag Free Day on 3rd July 2023.
