ESAF Small Finance Bank scores high in ESG assessment 

ESAF Small Finance Bank Ltd has achieved an impressive score of 71 in an ESG assessment conducted by CareEdge Research. By surpassing the industry average of 59.8, the bank has showcased that its environmental, social and governance practices are set at a higher standard than the industry average. Ever since its establishment, the bank has embraced the concept of ESG at its core.

In terms of the environmental pillar, the bank received a score of 62 per cent for its commitment to green finance and environment conscious operations. Additionally, the bank has demonstrated a decisive ESG roadmap in Sustainable Development Goal initiatives, fostering local sustainable economic growth, ensuring food security, fostering energy security, and aligning with net-zero targets through its commitment to green finance and environmental consciousness.

• Also read: ESAF Bank net profit soars 452% in FY23

Social pillar

For the social pillar, the bank achieved a score of 68 per cent by demonstrating healthy labour management practices, including the implementation of various policies that embody international and national human rights standards. Furthermore, the bank’s corporate social responsibility contribution exceeded the government-mandated requirement of 2 per cent of a company’s average net profits made during the immediately preceding three financial years by approving the contribution of up to 5 per cent.

In terms of the governance pillar, the bank attained a score of 76 per cent due to its board governance and disclosure practices aligning with leading governance practices. On a grading scale of 1 to 7, the bank secured a score of 3, reflecting its commitment to strong governance principles.

• Also read: ESAF Small Finance Bank eyes 25-30% growth in FY24

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