YES BANK – Financing the Future Namita Vikas, Senior President & Chief Sustainability Officer, YES BANK

India Story! India ranked 13 on climate Vulnerability Index IPCC AR5 on India: Agricultural sector would be hit worst Rainfall puts millions of lives at stake Adaptation, Mitigation and Resilience key Currently India gearing up climate action: Commitments to achieve 175 GW Renewable Energy by 2020 Deployment of Green Climate Fund

Ministries and multi-laterals Climate Finance - Advocacy Renewable Energy Separate Sectoral limits Inclusion in Priority Sector Lending Exclusion from Single/Group borrower limits Establishment of Sovereign Renewable Energy funds Climate Finance Task force to increase Renewable energy investments ESG Voluntary Responsible Finance Guidelines for the Indian Banking industry India Advisory Council of the UNEP Inquiry Low carbon industry growth in India E-waste management in India – The corporate imperative Enabling finance for scaling up energy efficiency in MSMEs Increasing RE investments in India Ministries and multi-laterals Advising on INDCs for ‘COP21’ US India Clean Energy Fund India GHG program Thought Leadership

Climate Finance - Action Renewable Energy INR 10 bn Green Bond Target 5 GW funding ESG Environmental & Social framework Sustainability Series Industry training Employee training Partial risk guarantee fund for socially/environmentally impactful enterprises Participation in Green Climate fund Energy efficiency in MSMEs – Energy audits and exploring financing opportunities YES COMMUNITY Innovation Environmental Management Policy ISO 14001:2004 Internal action

Responsible Banking: A differentiated approach “Sustainability Zone” Combined economic, social and environmental benefits Pure Philanthropy Pure Profit

Responsible Banking Mission Vision Deliverables Deliver internal and external positive socio-environmental impact Enhance YES BANK’s influence in CSR and sustainability space Mission Link CSR and sustainable development with stakeholder value creation through innovative solutions and services Weave sustainability principles into YES BANK’s core business strategy and processes Vision YES BANK - Be the benchmark financial institution for inclusivity and sustainability”

Responsible Banking - Approach Proactive investments for environmental & social outcomes Impacting environment & society through innovative solutions Internalizing sustainability in core operations

Proactive investments for environmental & social outcomes Evolution of Renewable Energy Financing at YES BANK Welspun Neemuch - Largest solar PV Project - 151 MW capacity First bank to sanction facilities of $33 million(~24.8 million Euros) to the project Electricity for 624,000 households Offset 216,372 tons of CO2 emissions annually Create livelihoods and provide services to BoP January 2015 - INR 10 bn Green bonds September 2014 - 500MW annually January 2015 - 5 GW over next 5 years Add Euros in place of INR This financial year, we have already achieved 1100 MW exposure to Renewable energy projects

Impacting environment & society through innovative solutions Approximately 1.28 mn unique senders INR 32 bn worth transactions in FY2013-14 IMPACT YES MONEY Remittance service for unbanked & under-banked population of India Brought financial services to rural households INR 2.96 bn worth transactions in FY2013-14 YES SAHAJ Cost effective & scalable Mobile transaction solution—Micro-ATM model Extended Financial Inclusion to over 0.53 mn households INR 270 mn in savings linked SHGs & INR 650 crores in credit linked SHGs YES LEAP Credit, saving & insurance facilities to SHGs through NGOs acting as Business Correspondents of Bank Inclusive & Social Banking Immense scaling opportunity as 60% of farmers are using the instant payment services YES KISAN DAIRY PLUS Instant payment services to milk vendors through the dairy acting as a BC

Environmental & social policy Internalizing sustainability in core operations Environmental & social policy ISO 14001 certification Project 3 Project 2 Challenges Opportunities Project 1 Lack of awareness Regular communication Awareness sessions Lack of ownership from branch staff Individual energy audits Huge branch network Project 2 Training to branch staff For all projects Compliance to Exclusion List (Annexure I of ESP) and Host Country Regulations Projects exceeding USD 5 million Compliance to Exclusion List, Host Country Regulations and applicable IFC Performance Standards First Indian bank to get ISO 14001:2004 certification 10

World: India: Encouragement for Climate action to non-state players Internalizing the externalities Positive incentivization through Policy Monetization & Minimization Integrated reporting World: Decipher climate action at local level National Adaptation Fund Single window clearances – fast track projects ESG risk guidelines India:

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