AU Small Finance Bank Releases Sustainability Report 2024–25: Banking for People, Planet and Progress

Hyderabad, Jan 06: AU Small Finance Bank (AU SFB), India’s leading small finance institution and the first RBI-approved candidate for Universal Bank conversion, has unveiled its fourth annual Sustainability Report. This comprehensive document highlights the bank’s dedication to responsible growth across four strategic areas: financial sustainability, operational efficiency, community impact, and transparent reporting.

Developed in compliance with international GRI Standards and SEBI’s BRSR framework, the independently verified report by Intertek India details the bank’s performance throughout FY 2024-25. This publication arrives as AU SFB prepares for its landmark transition to Universal Banking status.

The bank continues to strengthen its governance framework while expanding initiatives that balance financial inclusion, environmental responsibility, and corporate accountability. This sustainability roadmap positions AU SFB to create lasting socioeconomic value during its next phase of growth.

Key Advancements in 2024-25 Reporting

This year’s report introduces significant improvements in disclosure and framework development:

• Adoption of the 4S ESG integration model covering financial services, internal operations, community programs, and reporting standards
• Comprehensive materiality assessment incorporating insights from employees, leadership, investors, and partners
• 90+ GRI-aligned disclosures with independent verification of 52 performance indicators

Financial Inclusion Initiatives

AU SFB’s “Planet First” green deposit initiative mobilized ₹1,178.52 crore for climate-positive investments, primarily supporting renewable energy (₹958.81 crore), electric mobility (₹90.51 crore), and sustainable construction (₹1.48 crore).

The bank maintains strong rural outreach with 32% of its 2,456 service centers located in previously unbanked areas. Current Priority Sector Lending exceeds requirements at 79%, with 63% of loans under ₹25 lakh demonstrating commitment to grassroots financial access.

Operational Sustainability

Environmental footprint tracking shows progress with 317 tCO₂e Scope 1 emissions, 28,076 tCO₂e Scope 2 emissions, and 734 tCO₂e Scope 3 emissions. Over 50,000 employees maintained an 86% satisfaction rate while completing 2.09 million training hours (average 32 hours per employee).

Community Development Programs

A ₹43 crore CSR investment supported 272,000+ beneficiaries through flagship programs:

• AU Ignite: 29,701 youth trained (74% placement rate)
• AU Udyogini: 4,000+ women supported, including 2,245 entrepreneurs
• AU Bano Champion: 8,000+ athletes developed, with 480+ achieving national recognition

Governance and Climate Leadership

The bank’s AA (Leader) ESG rating from MSCI and Sustainalytics’ 17.1 Low-Risk score highlight governance excellence. AU SFB partnered with IFC to integrate climate risk modeling into lending practices, becoming India’s first financial institution to implement both physical and transition risk assessments aligned with RBI guidelines.

H R Khan, Chairman, AU Small Finance Bank, said, “Our sustainability commitment predates regulatory requirements – it’s fundamentally part of our organizational DNA. As we transition to a Universal Bank, we recognize our expanded responsibility to balance economic growth with ecological preservation and equitable development.”

Sanjay Agarwal, Founder, MD & CEO, AU Small Finance Bank, added, “Strategic decisions now consider stakeholder interests alongside environmental impacts. By financing sustainable infrastructure, expanding financial access, and maintaining transparent governance, we’re building an institution capable of delivering enduring value.