How YES Bank is banking on net-zero goals
YES Bank has shifted several offices, including its corporate office, to renewable energy. Its sustainable finance strategy, too, is bearing fruit.
Nachiket Kelkar
- Jun 10, 2026,
- Updated Jun 10, 2026 4:47 PM IST
Yes Bank has been on an expansion spree. In the year ended March 2026, the private sector lender added 82 new branches as part of its 400-branch target in four-five years. But it has not lost sight of its sustainability goals. Among its many green goals is reducing greenhouse gas emissions from operations to net zero by 2030.
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To achieve these targets, the lender will power most of its facilities from renewable energy. Already, key facilities, including its corporate office, along with 82 others, have migrated to renewable power. It has been recognised as the Most Sustainable Bank in the Financial Sector Category in this year’s BT India's Most Sustainable Companies.
The target reflects not only the bank’s environmental ambition, but a broader shift in how it is reimagining operational resilience and climate-readiness, Niranjan Banodkar, Group Chief Financial Officer, tells Business Today.
“Our approach to achieving this target rests on three pillars—stronger data systems to improve accuracy and transparency of energy and emissions tracking; optimising energy consumption by phasing out older equipment and investing in energy efficient infrastructure; and accelerated renewable adoption by exploring new and evolving avenues such as open access and green tariff,” says Banodkar.
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The bank has been among the first to measure and report financed emissions of its electricity generation loan portfolio and develop targets to align with global decarbonisation pathways.
Over the years, YES Bank has strengthened its ESG (environmental, social and governance) framework and set up a board-level CSR (corporate social responsibility) and ESG committee. In addition, there is a management-level sustainability council, chaired by the MD and CEO, Vinay Muralidhar Tonse.
“The bank has instituted a robust governance framework to ensure that ESG considerations are integrated into the organisation’s culture. This shift is being shaped in large part by the bank’s board-level CSR and ESG committee, which serves as the institution’s highest governance body on sustainability matters,” says Banodkar.
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The committee oversees YES Bank’s larger ESG agenda aimed at long-term value creation, ensures adequate risk governance for addressing emerging climate-related risks, strengthens standards for transparency in ESG disclosures, and guides the executive-level sustainability council in implementing the bank’s ESG and climate strategy.
YES Bank has also instituted domain-specific ESG KPIs for the top management to ensure that sustainability is embedded into the decision-making process. Furthermore, it has set a target to achieve 30% gender diversity by 2029-30.
Sustainable finance has also been among a key focus area for the lender. YES Bank had issued the country’s first green infrastructure bond was back in 2015. The bonds, which were for a 10-year duration, saw strong demand from large investors, including insurance and pension funds, mutual funds and foreign portfolio investors, leading to a total subscription of Rs 1,000 crore. The idea was to use the funds to finance green infrastructure projects in renewable energy.
The ecosystem has evolved since with Sebi regulations on green debt securities in 2017. Till date, Indian entities have raised around Rs 23,350 crore domestically
YES Bank also launched a green deposit scheme in 2018. “These initiatives helped the bank build institutional capabilities around sustainable financing frameworks, green use-of-proceeds reporting, verification and disclosures, which continue to inform its approach today,” says Banodkar.
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YES Bank, he says, continues to channelise green financing towards climate-aligned sectors like renewable energy, clean transportation, and green buildings, and supports climate adaptation and mitigation activities as one of the Accredited Entities to the Green Climate Fund in India.
In S&P Global’s recent corporate sustainability assessment (CSA) for 2025, Yes Bank scored 79 of 100 points to emerge as India’s highest rated bank in the assessment, according to the lender. S&P Global’s CSA is an in-depth evaluation of corporate sustainability performance.
In August 2025, the Crisil report upgrading the credit rating on YES Bank said the bank’s ESG profile supports its already strong credit risk profile.
As a part of its CSR initiatives, YES Bank has planted 600,000 trees, with a goal to reach one million by 2028. The lender has also promoted energy conservation in 500 micro, small and medium enterprises. It has also taken various focused initiatives to enhance the earnings capability in rural areas.
@TheNachiket
Yes Bank has been on an expansion spree. In the year ended March 2026, the private sector lender added 82 new branches as part of its 400-branch target in four-five years. But it has not lost sight of its sustainability goals. Among its many green goals is reducing greenhouse gas emissions from operations to net zero by 2030.
Advertisement
To achieve these targets, the lender will power most of its facilities from renewable energy. Already, key facilities, including its corporate office, along with 82 others, have migrated to renewable power. It has been recognised as the Most Sustainable Bank in the Financial Sector Category in this year’s BT India's Most Sustainable Companies.
The target reflects not only the bank’s environmental ambition, but a broader shift in how it is reimagining operational resilience and climate-readiness, Niranjan Banodkar, Group Chief Financial Officer, tells Business Today.
“Our approach to achieving this target rests on three pillars—stronger data systems to improve accuracy and transparency of energy and emissions tracking; optimising energy consumption by phasing out older equipment and investing in energy efficient infrastructure; and accelerated renewable adoption by exploring new and evolving avenues such as open access and green tariff,” says Banodkar.
Advertisement
The bank has been among the first to measure and report financed emissions of its electricity generation loan portfolio and develop targets to align with global decarbonisation pathways.
Over the years, YES Bank has strengthened its ESG (environmental, social and governance) framework and set up a board-level CSR (corporate social responsibility) and ESG committee. In addition, there is a management-level sustainability council, chaired by the MD and CEO, Vinay Muralidhar Tonse.
“The bank has instituted a robust governance framework to ensure that ESG considerations are integrated into the organisation’s culture. This shift is being shaped in large part by the bank’s board-level CSR and ESG committee, which serves as the institution’s highest governance body on sustainability matters,” says Banodkar.
Advertisement
The committee oversees YES Bank’s larger ESG agenda aimed at long-term value creation, ensures adequate risk governance for addressing emerging climate-related risks, strengthens standards for transparency in ESG disclosures, and guides the executive-level sustainability council in implementing the bank’s ESG and climate strategy.
YES Bank has also instituted domain-specific ESG KPIs for the top management to ensure that sustainability is embedded into the decision-making process. Furthermore, it has set a target to achieve 30% gender diversity by 2029-30.
Sustainable finance has also been among a key focus area for the lender. YES Bank had issued the country’s first green infrastructure bond was back in 2015. The bonds, which were for a 10-year duration, saw strong demand from large investors, including insurance and pension funds, mutual funds and foreign portfolio investors, leading to a total subscription of Rs 1,000 crore. The idea was to use the funds to finance green infrastructure projects in renewable energy.
The ecosystem has evolved since with Sebi regulations on green debt securities in 2017. Till date, Indian entities have raised around Rs 23,350 crore domestically
YES Bank also launched a green deposit scheme in 2018. “These initiatives helped the bank build institutional capabilities around sustainable financing frameworks, green use-of-proceeds reporting, verification and disclosures, which continue to inform its approach today,” says Banodkar.
Advertisement
YES Bank, he says, continues to channelise green financing towards climate-aligned sectors like renewable energy, clean transportation, and green buildings, and supports climate adaptation and mitigation activities as one of the Accredited Entities to the Green Climate Fund in India.
In S&P Global’s recent corporate sustainability assessment (CSA) for 2025, Yes Bank scored 79 of 100 points to emerge as India’s highest rated bank in the assessment, according to the lender. S&P Global’s CSA is an in-depth evaluation of corporate sustainability performance.
In August 2025, the Crisil report upgrading the credit rating on YES Bank said the bank’s ESG profile supports its already strong credit risk profile.
As a part of its CSR initiatives, YES Bank has planted 600,000 trees, with a goal to reach one million by 2028. The lender has also promoted energy conservation in 500 micro, small and medium enterprises. It has also taken various focused initiatives to enhance the earnings capability in rural areas.
@TheNachiket
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