State Bank of India
State Bank Bhavan, Madame Cama Road, 400021, India
Fax: 022 – 27563478
The bank does not disclose this information.
CHIEF SUSTAINABILITY OFFICER
Shri Rana Ashutosh Kumar Singh
- Grant Thornton SABERA 2020 Awards for agriculture and rural development
- Corona Warriors Award by Hon’ble Governor of Maharashtra for Healthcare
- ICC Social impact Awards 2021 for Empowering the Rural Population
- “Best Advance in Social Learning Technology” for e-Gyanshala
Report created by Samuel Hamway
State Bank of India
State Bank of India is an Indian multinational banking and financial services company headquartered in Mumbai. It is a public sector bank operating worldwide, and is one of the top 100 financial institutions in the world.
State Bank of India is the largest bank in India, employing the fifth most people of any employer. The firm also holds a 23% market share by assets and a 25% share of the total loan and deposits market within India.
State Bank of India is one of the largest financial institutions in the world, boasting total assets of US$561.54 billion. This places the bank as the 55th largest in the world. The bank also ranked 221st on the Fortune Global 500 list.
The bank offers a wide range of services globally, including retail banking, corporate banking, investment banking, mortgage loans, wealth management, credit cards and more.
Company Sustainability Activity
As both a public sector institution and as a citizen of the corporate world, the State Bank of India strives to align itself with societal requirements. The bank has set sustainability as one of its primary pillars.
State Bank of India funds sectors such as agriculture, livelihood generation, housing and renewable energy, which are playing a significant role in enhancing the resilience of communities. The bank is also leveraging its domain expertise to foster financial inclusion and literacy, through its outreach, products and services.
Becoming carbon-neutral has become a central goal for the bank, making reducing the environmental impact a top, short-term priority.
For the State Bank of India, the COVID-19 pandemic has highlighted the need for a concerted effort to overcome disruptions to society. Recovery, in the eyes of the firm, must be sustainable, inclusive and accessible to all.
- Set up 266 rainwater harvesting systems.
- Supported the planting of 15,500 saplings.
- Bonds worth USD $800 million issued.
- Raised green loan worth €50 million.
- Secured credit lines for investment.
- The Bank’s aim to become carbon neutral by 2030 is the key tenet of its climate strategy.
- Install solar power plants on corporate campuses.
- Plant various tree species through tree planting campaigns.
- Use organic farming for corporate food sourcing.
- Banning the use of single-use plastic on the corporate campus.
- Bonds worth USD $800 million have been issued since FY 2018-19.
- A green loan worth €50 million was raised in FY 2020-21.
- Secured credit lines for investment:
- USD $625 million in installing rooftop solar panels, which enable consumers to meet their energy needs in an environmentally sound manner.
- USD $300 million to extend credit to agriculture and allied activities, small businesses, small-scale industries and renewable energy, among much more.
- USD $277 million towards incentivizing builders and home loan borrowers to opt for energy-efficient alternatives.
- USD $274 million towards affordable housing.
- USD $214.3 million aimed towards reducing dependency on fossil fuels.
- USD$177.3 million aimed at promoting the proliferation of renewable energy in India.
- Set up 266 rainwater harvesting systems across branches, offices and other establishments.
- Supported the planting of 15,500 saplings along the West Bengal coastline, which was affected by Cyclone Amphan.
UN Sustainable Development Goals
UN SDGs Compliance
SDG 2: Zero Hunger
- SBI is financing polyhouse farming projects to drive progress on the goals of zero hunger, good health and wellbeing, sustainable consumption and production, and climate action.
SDG 3: Good Health and Well-Being
- Through loan products, SBI aims to facilitate access to better care for residents of smaller cities and villages, resulting in a reduced burden on existing facilities and consequently, better healthcare for all.
SDG 5: Gender Equality
- To encourage financial independence in women, the Bank provides them with a concession.
- Encouraging and financing women’s self-help groups.
SDG 7: Affordable and Clean Energy
- By funding small projects with a capacity of up to 1MW, this initiative seeks to popularise the use of renewable energy in commercial institutions and industry buildings with smaller roofs.
SDG 8: Decent Work and Economic Growth
- SBI’s Skill Loan was designed to help individuals enhance their skills and improve their livelihood.
- This scheme promotes opportunities for all and ensures inclusive and equitable quality education.
SDG 9: Industry, Innovation and Infrastructure
- SBI extends digital term loans up to ₹50,000 to help microentrepreneurs meet key requirements related to their business, consequently enhancing their employment generation potential.
SDG 11: Sustainable Cities and Communities
- SBI provides loans for CBG plants under the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme.
- This project is aimed at creating large-scale employment for skilled and unskilled people, along with sustainable industrialisation, innovation, reduction in emissions, and waste management.
SDG 13: Climate Action
- As of 31st March 2021, SBI has sanctioned ₹14.21 crores towards E-rickshaws, which serve as an environment-friendly and cost-effective mode of transport.
- SBI helps fund the purchase of solar water pumping systems and provides a sustainable livelihood for these farmers, while also reducing the environmental footprint.
State Bank of India is clearly committed to a sustainable future. The bank has made significant progress towards sustainability, reporting the achievements of various benchmarks. The firm publishes an annual Sustainability Report, offering transparent progress reporting.
State Bank of India’s compliance and focus towards the UN Sustainable Development Goals is commendable. Furthermore, bank initiatives including the Sustainable Alternative Towards Affordable Transportation scheme and the Skill Loan program demonstrate a commitment towards sustainable progress.
Despite the firm’s commitment to the SDGs, the State Bank of India lacks specific, numerical goals in reaching their goal of carbon neutrality by 2030. Furthermore, the bank lacks significant sustainability certifications, only holding the Climate Bonds Standard and Certification Scheme.
Despite its sustainability initiatives, the State Bank of India had invested $21.478 B in the fossil fuel industry since the adoption of the Paris Agreement. While the bank decreased its investments from $6.210 B in 2019 to $1.929 B in 2020, its involvement in the industry is still significant.
Therefore, the company has been rated a C.
Analyst Outlook: Neutral
State Bank of India has several promising aspects of its sustainability efforts. The firm has clearly made significant, numerically notable achievements as reported through its annual Sustainability Report. Despite this, the bank’s lack of clear goals and certifications raises issues regarding the firm’s current outlook on sustainability.
If the State Bank of India continues to divest from the fossil fuel industry, it could receive a higher rating on the Impakter Index.
- Pledge to reach carbon neutrality by 2030.
- Plan to ban single use plastics on corporate campuses.
- Aligned efforts with UN Sustainable Development Goals.
- Over $1 billion USD in credit lines for sustainable initiatives.