YES BANK has received an adjusted Environmental, Social, and Governance (ESG) Score of 80.5 for FY 2024-25 from SES ESG, an increase of 0.1 points year-over-year. The Bank’s overall performance is rated ‘B’ (80-90) with a low overall ESG risk. Key highlights include a strong Governance score of 85, while the Environmental score stands at 88, and the Social score is 78. The Bank has set a commitment to achieve Net Zero emissions by FY 2030.
SES ESG Rating Outcome for FY 2024-25
YES BANK was assigned an adjusted ESG Score of 80.5 for the fiscal year 2024-25 by SES ESG Research Pvt. Ltd. This represents a marginal year-over-year improvement of 0.1 points from the prior year’s score of 80.4. The final score reflects an ESG Grade of ‘B’, categorized under a ‘Low’ risk footprint. The score is derived from an independent assessment based on the Bank’s public disclosures.
Pillar Performance Analysis (Unadjusted Scores)
The overall ESG score is a composite of the three main pillars, with the following unadjusted scores:
- Environmental Score: 88 (up from 84 in FY 2024).
- Social Score: 78 (stable from FY 2024).
- Governance Score: 85 (up from 81 in FY 2024).
Governance received the highest weightage at 45% in the SES model, followed by Social (33%) and Environment (22%).
Key Environmental Highlights and Targets
The Environmental pillar score improved due to positive performance in several areas. The Bank has committed to achieving Net Zero emissions (Scope 1 and Scope 2) by 2030. In FY 2024-25, the Bank increased its renewable energy consumption to 19.20% of total energy, up from 11.81% the previous year. Total Scope 1 and 2 emissions were reduced by 16.87% compared to the prior year, reaching 33,994 tCO2e. The Bank has also sanctioned ₹7,357 crores for supporting renewable energy projects, amounting to approximately 2,210 MW.
However, some areas require focus, such as waste management, where total waste generation increased, and short-term targets for water and waste were not disclosed.
Social Performance and Workforce Metrics
The Social score remained stable at 78. Highlights include a strong performance in Cyber Security & Data Privacy (score 87) and CSR, Community Relations & Engagement (score 87). Workforce diversity shows women representation at 23.19% of the total workforce. On compliance, the Bank reported 30 complaints on Sexual Harassment in FY 2024-25, though zero complaints were reported related to discrimination, child labour, or forced labour.
A significant challenge noted is that the permanent employee turnover rate remains high at 35.50%. Furthermore, a material gap (more than 20%) was observed between the median remuneration of male and female employees.
Governance Strength and Compliance Concerns
The Governance score is strong at 85, driven by high scores in Statutory & Secretarial Auditors compliance (100%) and Audit & Financial Reporting (100%). The Board composition shows 50% women directors. The Bank also reported zero complaints related to bribery or corruption.
SES highlighted several governance concerns:
- The current Board composition is non-compliant with Section 152 of the Companies Act, 2013 regarding the requisite number of directors liable to retire by rotation.
- Concerns were raised regarding the proposal for the appointment of M/s. CNK & Associates LLP as Joint Statutory Auditor due to an inconsistency between shareholder approval and RBI approval periods.
Financial Inclusion and Sustainability Financing
YES BANK showed positive progress in Financial Inclusion, with the score increasing by 10 points to 73. The Bank achieved 100% compliance with Priority Sector Lending (PSL) norms. In sustainable finance, the Bank sanctioned ₹7,357 crore towards renewable energy projects in FY 2024-25. The bank’s financial performance indicators showed efficiency improvements, with the Cost to Income ratio improving by 4.17% to 71.3%.
Source: BSE
