DBS Bank India has announced the launch of its Green Deposit Programme for corporate clients providing a simple way for companies to support environmentally friendly projects or avenues.
Under the Bank's sustainability programme, green deposits will fund green industries and initiatives such as green building sustainable water initiatives that include wastewater management, renewable energy and clean transportation.
The green deposits proposition combines all the benefits of a regular fixed deposit with a commitment from DBS to support green and sustainable loans disbursed by the bank, it said in a press statement.
Commenting on the initiative, Divyesh Dalal, Managing Director and Head – Global Transaction Services, DBS Bank India, said, “Through sustainable financing, banks play an important role in accelerating the transition to an ESG friendly future. Our green deposits programme aims to finance green industries and initiatives for renewable energy, managing wastewater and clean transport."
The deposits can provide a threefold benefit said, demonstrate customer’s commitment towards environmental sustainability; customers can invest surplus cash in deposits supporting sustainable projects with positive environmental impact; customers can receive stable returns on investment without compromising the security of the deposit placement.
To scale up India's cotton industry, the bank partnered with fashion retailer Inditex, one of the world's largest retailers, to arrange financing for the Farmer Producer Organisations (FPOs) to procure organic cotton from the farmers in a timely fashion.
The World Economic Forum reported that an estimated $2.5 billion in additional annual investment is necessary to fully achieve the United Nations’ Sustainable Development Goals in developing countries.
India is increasingly working towards achieving an inclusive, sustainable economy. India’s performance on the NITI Aayog SDG India Index has improved from an overall score of 60 in 2019-20 to 66 in 2020-21.
