Carbon Neutrality: How Yes Bank Under Rana Kapoor Spread the Word
Carbon neutrality has been talked about for years now. The concept pertaining to changing scenarios of the Earth including rise in temperature are making life difficult on the planet. The former CEO and Founder of Yes Bank Rana Kapoor raised the red flag by asking to act on reducing the carbon footprint and partnered with the Carbon Disclosure Project as early as 2007. The visionary by virtue of which also made Yes Bank the first and the only signatory to the idea. Apparently, this meant that Kapoor agreed to maintaining a single carbon reporting standard and enabled investors to take practical decisions in the longer run.
“I truly believe that the Carbon Disclosure Project provides institutional investors with a relevant platform to leverage their position of influencing investment and management decisions of the business community to align itself with broader sustainability goals. Indeed, the thought processes that have shaped the Carbon Disclosure Project have fullest compatibility with our find resonance in our own endeavors at Yes Bank to mainstream sustainability within the Indian context. As a Public Trust Institution, Yes Bank is cognizant of its responsibility in augmenting the sustainable development of India and is committed to creating a commercially viable financial institution that incorporates sustainability within its core business focus,” informed Kapoor as he signed for the idea.
It is known that investors are of the thought that good carbon management is equivalent to good corporate management. The perceived notion is correct and therefore, demands the firms to delve deep into external factors impacting the climate change.
Reportedly, Yes Bank not only signed for the idea but also worked continuously towards it. In one its knowledge papers named ‘Low Carbon Industrial Growth In India’ it brought to light the scenarios impacting the environment in India and how reducing the carbon emission levels plays a pivotal role. Besides, in the same account it also mentioned the analysis of three industry groups i.e., iron and steel, electricity and power, and cement production, which have been at the core of economic development.
The formal understanding of emission from the industries revolves around use of coal and other fossil materials to manufacture, supply, and earn profits. The novel concept is fine with the industries that maintain their focus on only earning money. But for any institution to survive, earn, and grow, it is a must that emission of carbon dioxide is either eliminated or reduced to a significant level. Rana Kapoor often stated that whenever a crisis arises, it leads to new ways being driven in a way never seen before. Also, since the industry has the ability, it is always able to fight the conundrums. For Instance, in case of cement as well as iron and steel, efficiency in use of power has given companies the opportunity to outperform each other.
With Carbon Disclosure Project in place, Yes Bank made sure that none of its initiatives led to carbon emissions at vast. In its vow, the bank went ahead with a plan of Greening India’s national highways. This plan under Rana Kapoor was for adopted in line with India’s commitment to Nationally Determined Contributions (NDC), which states that the country will create an additional carbon sink of 2.5 to 3 billion tons of carbon dioxide by 2030. The plan, therefore, witnessed plantation of trees by the bank all over India. Interestingly, just like the first institution to agree to Carbon Disclosure Project, the bank became the first institution to agree to CSR commitment and ‘Adopt a Green Highway’ under National Green Highways Mission initiative.
Right from its initiation, Yes Bank under the guidance of Rana Kapoor touched multiple tangents to safeguard the environment and promote sustainability. And his ideas not only helped the bank, but also set an example for the entire industry to learn from and act on the situation.