Step-01
ESG Baseline & Portfolio Mapping
Assess your current BRSR Core readiness, map climate risk exposures in your loan book and investment portfolio, and identify PCAF asset classes requiring financed emissions calculation.
3–4 Weeks
Industry Focus — Financial Services
ESG for Banks, NBFCs & Asset Managers
Financed emissions, climate credit risk, green bond issuance and SEBI ESG fund compliance — we deliver the full spectrum of financial sector ESG advisory, backed by our CA firm.
RBI Climate RiskTCFD / IFRS S2SEBI ESG FundsPCAFUNEP FI PRB
700×
Financed emissions vs. operational emissions for banks
₹8.3L Cr
green bond market opportunity in India by 2030
12%
of Indian banks have quantified financed emissions
3
RBI circulars on climate risk disclosure issued since 2023
Material Topics
What ESG topics are most material?
Based on SASB Industrials, GRI standards and our proprietary materiality database across 200+ clients.
F
CriticalFinanced Emissions (Scope 3 Cat. 15)
For banks and asset managers, financed emissions can be 700× operational carbon. PCAF methodology requires borrower-level data, asset class attribution and annual disclosure.
RBISEBIInvestors
C
CriticalClimate Risk in Credit Portfolios
Physical and transition climate risks embedded in corporate loan books — from stranded asset exposure to flood-prone real estate — require scenario-based TCFD/IFRS S2 disclosure.
RBIRating Agencies
S
HighSEBI ESG Fund Compliance
AMFI and SEBI norms require ESG mutual funds to disclose engagement policies, voting records and portfolio-level ESG scores — preventing greenwashing exposure.
SEBIRetail Investors
G
HighGreen Bond Issuance & Reporting
SEBI's Green Bond framework and ICMA Green Bond Principles require rigorous use-of-proceeds tracking, independent review and annual impact reporting to avoid certification risk.
SEBIBond Investors
E
HighESG Due Diligence in Credit Appraisal
IFC Performance Standards and emerging RBI guidance require ESG risk to be embedded in credit appraisal — covering environmental liabilities, labour practices and governance.
IFC / DFIsRBI
F
MediumFinancial Inclusion & Access
BRSR Social and GRI FS13 require disclosure on financial access metrics — branch distribution in underserved areas, MSME lending ratios and Jan Dhan integration.
RBIInvestorsCommunities
Regulatory Landscape
Every regulation that applies to your operations
Framework / Regulation
Type
Scope & Applicability
Effective
Framework
BRSR Core (SEBI)
Securities & Exchange Board of India
TypeMandatory
Scope
Listed banks, NBFCs and insurance companies in NIFTY 1000. Assured disclosure.
Effective
FY 2023–24
Framework
RBI Climate Risk Guidance
Reserve Bank of India
TypeMandatory
Scope
All scheduled commercial banks. Climate risk integration into ICAAP and credit policy.
Effective
2024 Active
Framework
SEBI ESG Mutual Fund Norms
SEBI / AMFI
TypeMandatory
Scope
All AMCs with ESG labelled funds. Engagement policy, voting disclosure, portfolio ESG score.
Effective
Active
Framework
TCFD / IFRS S2 Scenario Analysis
IFRS Foundation / FSB
TypeVoluntary
Scope
International standard for climate risk disclosure. Required by institutional investors and DFI lenders.
Effective
Investor-Driven
Framework
PCAF — Financed Emissions Standard
Partnership for Carbon Accounting Financials
TypeVoluntary
Scope
Gold standard for measuring Scope 3 Category 15 financed emissions across asset classes.
Effective
Global Norm
Framework
UNEP FI Principles for Responsible Banking
UNEP Finance Initiative
TypeVoluntary
Scope
Signatories must align portfolios to SDGs and Paris Agreement, with annual public reporting.
Effective
Signatory
Framework
EU Sustainable Finance Disclosure Regulation
European Commission
TypeEmerging
Scope
Affects Indian subsidiaries and fund managers with EU-domiciled parent entities or EU investor base.
Effective
EU Entities
Framework
IRDAI ESG Disclosure Guidelines
Insurance Regulatory Authority India
TypeEmerging
Scope
Insurers must disclose climate risk underwriting exposure and ESG investment policy. Draft stage.
Effective
Draft 2025
Mandatory — legal obligation
Voluntary — investor / buyer expectation
Emerging — regulatory pipeline
Our Approach
How we work with financial institutions
A sequenced programme designed around the regulatory calendar and investor reporting cycle of India's banking and asset management sector.
Step-02
Financed Emissions & Climate Risk Modelling
PCAF-aligned financed emissions inventory across listed equity, corporate bonds, business loans and mortgages. TCFD/IFRS S2 scenario analysis covering physical and transition risk in your largest sectoral exposures.
8–12 Weeks
Step-03
Green Finance & ESG Credit Integration
Design your green bond framework (ICMA/SEBI), embed ESG criteria in credit policy, build the ESG due diligence protocol for borrowers and structure sustainability-linked lending facilities.
6–10 Weeks
Step-04
BRSR Core Assurance & Investor Reporting
Full BRSR Core disclosure preparation with third-party assurance, TCFD/IFRS S2 aligned climate report, PCAF annual update and annual sustainability report for institutional investor engagement.
Annual Cycle
Typical ESG Maturity Uplift
BRSR Core Score91%
Portfolio Coverage (PCAF)78%
Green Asset Ratio34%
TCFD Disclosure Quality87%
ESG Credit PolicyDone
Certifications We Deliver
BRSR AssuredPCAF ReportTCFD ReportGreen Bond SPOClimate Risk Model
Our Services
What we deliver for financial services
Pulled from all three practice areas — Strategy & Advisory, Finance & Risk, and Governance & Social — filtered for financial services priority.
Priority
PCAF Financed Emissions
Full Scope 3 Category 15 measurement across listed equity, corporate bonds, project finance, mortgages and SME loans using PCAF methodology with annual reporting.
Priority
Climate Credit Risk Model
Sector-level transition risk exposure analysis and physical risk mapping of the loan book using NGFS scenarios — delivered in RBI ICAAP-compatible format.
Green Bond Framework & SPO
ICMA/SEBI-aligned Green Bond Framework design, use of proceeds structuring, Second Party Opinion coordination and post-issuance impact reporting.
SEBI ESG Fund Compliance
Portfolio ESG scoring, voting and engagement policy design, AMFI disclosure template completion and ongoing fund-level greenwashing risk monitoring.
ESG Credit Appraisal Protocol
Embed ESG risk assessment into your credit policy and loan origination workflow — covering environmental liabilities, governance risk and sector-level ESG exposure.
BRSR Core Assurance
CA firm-backed BRSR Core data collection, KPI verification and third-party assurance for banking and NBFC clients — covering all 49 KPIs.
ESG Benchmarking
Where do financial services companies stand on key ESG metrics?
Financial Services ESG Maturity Index
Financed Emissions Coverage
12%
82%
74%
TCFD Disclosure Quality
28%
88%
84%
ESG in Credit Policy
18%
76%
91%
Green Asset Ratio
9%
34%
28%
India Average
Global Best Practice
ESG Astraa Clients
88% of Indian banks have no PCAF data
Financed emissions measurement is a multi-year exercise. Banks starting now will still struggle to meet investor timelines by 2026.
Green bonds trade at a 15–25 bps premium
Indian green bonds from banks with credible ESG frameworks consistently price tighter than vanilla equivalents — with strong institutional oversubscription.
RBI is tightening — quickly
Three circulars in 18 months. Climate risk is moving from guidance to ICAAP integration. Banks not building the capability now face supervisory risk in 2026.
FIIs are withdrawing from TCFD non-disclosers
Global institutional investors are increasingly applying TCFD as a screen. Indian banks without climate risk disclosure are seeing their FII eligibility window close.
Free Resource
PCAF Readiness Guide for Indian Banks & NBFCs
Step-by-step guide to measuring financed emissions across all 7 PCAF asset classes — including India-specific data source mapping and RBI alignment notes.
What's Inside
- 7 PCAF asset classes explained for Indian portfolios
- Borrower-level data collection template
- India-specific emission factors & data sources
- RBI ICAAP climate risk integration checklist
- Green Bond readiness self-assessment
Financial Services Checklist
PDF Document
Key Areas Covered
Environment Social Governance
Get your Financial Services ESG Assessment
Our banking & asset management ESG team will assess your financed emissions gap, RBI climate risk readiness and green finance opportunities — in 2 weeks.
CA firm-backed · PCAF certified practitioners · Senior banker-turned-advisor team