YES BANK Financing the Future Namita Vikas Senior

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

India Story! • India ranked 13 on climate Vulnerability Index • IPCC AR 5 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

Climate Finance - Advocacy Renewable Energy • • ESG Ministries and multilaterals • • • Thought Leadership • Separate Sectoral limits Inclusion in Priority Sector Lending • Exclusion from Single/Group borrower limits • Voluntary Responsible Finance • Guidelines Establishment of. Indian Sovereign for the Banking Renewable Energy funds industry Climate Finance Task of force • • India Advisory Council the to increase Renewable energy UNEP Inquiry investments Low carbon industry growth in India • E-waste Advising on INDCs in for. India ‘COP 21’ management – The • corporate US Indiaimperative Clean Energy Fund • Enabling India GHG program finance for scaling up energy efficiency in MSMEs Increasing RE investments in India

Climate Finance - Action Renewable Energy ESG Innovation Internal action • INR 10 bn Green Bond • Target 5 GW funding • 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 • Environmental opportunities Management Policy • • ISO YES 14001: 2004 COMMUNITY

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

Responsible Banking Deliverables Deliver internal and external positive socio-environmental impact Enhance YES BANK’s influence in CSR and sustainability space Mission Vision 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 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 January 2015 - INR 10 bn Green bonds September 2014 500 MW annually January 2015 - 5 GW over next 5 years This financial year, we have already achieved 1100 MW exposure to Renewable energy projects 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 CO 2 emissions annually • Create livelihoods and provide services to Bo. P

Impacting environment & society through innovative solutions • Approximately 1. 28 mn unique senders • INR 32 bn worth transactions in FY 2013 -14 YES MONEY • Remittance service for unbanked & under -banked population of India YES SAHAJ • Cost effective & scalable Mobile transaction solution—Micro-ATM model YES LEAP • Credit, saving & insurance facilities to SHGs through NGOs acting as Business Correspondents of Bank Inclusive & YES KISAN DAIRY PLUS Social Banking • Instant payment services to milk vendors through the dairy acting as a BC I M P A C T • Brought financial services to rural households • INR 2. 96 bn worth transactions in FY 2013 -14 • Extended Financial Inclusion to over 0. 53 mn households • INR 270 mn in savings linked SHGs & INR 650 crores in credit linked SHGs • Immense scaling opportunity as 60% of farmers are using the instant payment services

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

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

Thank You