Banks in India have begun to reassess loans to carbon-intensive sectors amid growing pressure from international investors to mitigate against transition risks and adhere to global environmental, social and governance (ESG) standards.
Despite the country being the world’s third-largest polluter (after China and the US, according to Statista), local regulations on ESG disclosures are still in their early stages, with a mandatory disclosure regime for banks currently only in the consultation phase. India’s goal is to reach net-zero by 2070.
