State Bank of India (SBI) is working out the risk matrix for its borrowers wherein it gives some special credits for those embarking on green initiatives, Chairman Dinesh Khara said on Monday.
Since recently, the nation’s largest lender has also been measuring the carbon footprint of its Rs 33-lakh crore portfolio at the account level in an attempt to mitigate climate risks and provide sustainable financing, he said.
“At the bank level we have started working out the risk matrix of our borrowers wherein we give some special credits to those embarking on green initiatives,” the chairman said at a FICCI event in New Delhi.
However, he did not elaborate.
Khara, who has been warning against green-washing, also called for better project reports for green financing so that the information asymmetry that plagues the green funding space can be mitigated.
He also stressed on the need for a policy framework to promote the awareness on green finance ecosystem.
