The RBI asked banks to take note of issues like carbon dioxide emission and consumption of ozone-depleting CFCs and consider using to put in place a suitable and appropriate plan of action towards helping the cause of sustainable development, with the approval of their boards.
In this context, particular reference is drawn to the IFC principles on project finance (the equator principles) and carbon trading. Also, the RBI has advised the banks/financial institutions to keep themselves abreast of the developments on an on-going basis and dovetail/modify their strategies/plans in the light of such developments. Also, banks have been asked to place the progress made thereunder in the public domain along with their annual accounts.
The RBI emphasised on the urgency for banks to act as responsible corporate citizens in the society, especially in a developing country like India. ?Their activities should reflect their concern for human rights and environment,? said RBI in its notification.
The contribution of financial institutions including banks to sustainable development is paramount, considering the crucial role they play in financing the economic and developmental activities of the world. In this context, the need for sustainable developmental efforts by financial institutions in India assumes urgency and banks, in particular, can help contribute to this effort by playing a meaningful role.
In view of the gathering worldwide momentum regarding sustainable development, it has become incumbent to highlight the developments that are taking place.