'Banks, FIs to comply with environmental norms'
Banks and financial institutions need to ensure that customers and projects funded by them comply with environmental norms, IDBI Ltd Chairman and Managing Director V P Shetty suggested on Wednesday.
By PTI |
MUMBAI: Banks and financial institutions need to ensure that customers and projects funded by them comply with environmental norms, IDBI Ltd Chairman and Managing Director V P Shetty suggested on Wednesday.
Addressing the Environmental Governance Seminar being held here, he said many of the world's biggest commercial banks had come a long way towards environmental sustainability and pointed out that a new Banktrack Report on the future of sustainable finance urges the banking sector to move from promises to performance.
Giving example of his own bank, Shetty said that at IDBI, while appraising a project, the nature of pollutants and the likely environmental risks are assessed and the required treatment of the pollutants as well as the system for disposal to eliminate and minimise the risks are evaluated.
"In the case of large projects, we promote "Ecology Friendly Goals" from our clients by requiring an environmental and social management process," he said.
IDBI also ensures that a full environmental impact assessment is done and the project's potentially negative and positive environmental consequences are examined and compared with those of feasible alternatives, Shetty said.
The second three-day working conference on Environmental Governance Standards (EGS), which began on Wednesday is being jointly organised by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) and IDBI, in co-operation with the EU's Asia Pro Eco Programme.
Thirty participants from as many banks and countries are taking part in the three-day workshop.
Addressing the Environmental Governance Seminar being held here, he said many of the world's biggest commercial banks had come a long way towards environmental sustainability and pointed out that a new Banktrack Report on the future of sustainable finance urges the banking sector to move from promises to performance.
Giving example of his own bank, Shetty said that at IDBI, while appraising a project, the nature of pollutants and the likely environmental risks are assessed and the required treatment of the pollutants as well as the system for disposal to eliminate and minimise the risks are evaluated.
"In the case of large projects, we promote "Ecology Friendly Goals" from our clients by requiring an environmental and social management process," he said.
IDBI also ensures that a full environmental impact assessment is done and the project's potentially negative and positive environmental consequences are examined and compared with those of feasible alternatives, Shetty said.
The second three-day working conference on Environmental Governance Standards (EGS), which began on Wednesday is being jointly organised by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) and IDBI, in co-operation with the EU's Asia Pro Eco Programme.
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Thirty participants from as many banks and countries are taking part in the three-day workshop.
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