Private sector lender HDFC Bank recently announced its plans to become carbon-neutral by 2031-32.
Daily Current Affairs Quiz 2021
Carbon neutrality generally refers to achieving net-zero carbon dioxide emissions (referred to as personal, organizational, or national carbon neutrality).
This can be done by balancing emissions of carbon dioxide with its removal (often through carbon offsetting) or by eliminating emissions from society (the transition to the “post-carbon economy”).
The bank has a three-pronged strategy to achieve its objective to become carbon neutral- reduce consumption, transition to renewable energy, and offset carbon footprint.
The bank is looking at reducing its emissions, energy, and water consumption. It will continue to incorporate and scale up the use of renewable energy in its operations.
As part of its ESG (environmental, social, and corporate governance) strategy, the bank will also focus on offering loans for green products like electric vehicles at lower interest rates and incorporating ESG scores in its credit decisions.
