Indian Banks are not Green
The University of Leicester’s Department of Geography is investigating the reasons why Indian banks have yet to commit to the Equator Principles a set of environmental and social guidelines to which 62 banks and financial institutions worldwide have become signatories.
As part of the research, doctoral student Sophie Hadfield-Hill conducted 40 interviews with CEOs and senior management of Indian banks and leading companies.
Hadfield-Hill says that there is certainly a lack of awareness of the Equator Principles in India. Leading banks are vaguely conscious of the guidelines, however, the public sector is waiting to be led by the Reserve Bank of India and the private sector banks seem to only want to commit if there is regulation or financial incentive.
She also blames the lack of interest on the issue among Indian consumers for the failure of banks to declare their commitment to environmentally and socially responsible business.
She further says that work needs to be done to make the guidelines more relevant to emerging economies. Firstly, however, Indian banks need to be made fully aware of the environmental and social guidelines to which banks worldwide are agreeing to.