As a leading NBFC, we take immense pride in being a purpose-driven organisation, committed to make a positive impact. Our ethos of ‘Doing Well and Doing Good’ propels our unwavering dedication towards fostering the holistic development of all the stakeholders. Rooted in the core values of Knowledge, Action, Care, and Impact, PEL embodies a distinct identity and guides its conduct. These values serve as beacons, directing PEL’s employees, customers and partners towards actions that resonate with the brand.
As part of our sustainability strategy, we are actively pursuing Environmental, Social, and Governance (ESG) initiatives, reflecting our unwavering commitment to responsible finance and societal well-being.
Having embarked on our ESG journey as an independent financial services entity only a year ago, we are pleased to report noteworthy progress on the targets set during the previous fiscal year of FY 2022-23. Our efforts have been applauded, and we received commendable ESG rating scores that reflect our commitment to sustainable practices.
In line with our commitment to sustainable growth and the societal impact, PEL has developed a comprehensive sustainability strategy, which is guided by four strategic pillars: Impactful Growth, Social Stewardship, Resilient Technology, and Governance Excellence. Each focus area within these pillars is accompanied by specific KPIs, which serve as metrics for measuring our progress and guiding our efforts. By aligning our actions with these strategic pillars, we strive to generate maximum value for our stakeholders, while advancing our sustainability objectives. These pillars have gradually become the bedrock of sustainable evolution of our business.
Sustainable growth lies at the core of our business strategy. As an NBFC, we are deeply committed to promoting financial inclusion and empowering underserved communities. This commitment has led us to drive initiatives that are targeted at expanding access to financial services, promoting financial literacy, and fostering economic empowerment among marginalised groups.
In addition to fostering growth that delivers value to our shareholders, we aim to create positive outcomes for the society and the environment. Accordingly, one of our focus areas has also been on reducing greenhouse gas (GHG) emissions and promoting eco-friendly practices across our operations.
Our dedication to social responsibility has been driving our will to uplift communities, promote inclusivity, and foster social well-being. We aim to make a meaningful and lasting impact on the lives of individuals and societies we serve. The well-being and satisfaction of our workforce are paramount to us. Over the past year, we prioritised initiatives aimed at fostering a supportive work environment, promoting diversity and inclusion, and enhancing employee health.
To reach the highest standards of corporate governance, we emphasise and encourage more transparency, accountability, and ethical conduct across all aspects of our businesses.
Technology is essential in today’s dynamic business landscape. We have been embracing technology as a catalyst for innovation and resilience. This further underscores our commitment to leveraging technology responsibly to drive efficiency, adaptability, and sustainability across our operations.
Over the past year, we made significant strides in implementing our strategy, achieving several targets and KPIs set during the initial phase of our ESG journey.
Stakeholder consultations are integral to PEL’s identification of material topics. In navigating a rapidly evolving business landscape, PEL proactively mitigates potential risks to ensure resilience. Stakeholder identification and prioritisation are based on relevance, role, and influence, with dedicated channels established to foster communication, provide feedback, and facilitate issue resolution.
Internal stakeholders encompass employees, senior leaders, managers, and the Board of Directors, while external stakeholders include customers, investors/shareholders, regulatory bodies, industry associations, and the wider community.
During the previous fiscal year, PEL conducted an ESG materiality assessment, aligning with evolving ESG reporting standards and our sustainability strategy. This comprehensive process involved extensive research into relevant ESG topics and frameworks, as well as validation with internal stakeholders and subject matter experts. Analysis of stakeholder feedback informed the prioritisation of material topics through a risk and responsibility matrix, shaping our sustainability strategy.
Additionally, we also recognise the importance of engaging with our stakeholders to understand their needs and expectations better. The launch of our inaugural Sustainability Report for previous fiscal year of FY 2022-23 further spotlights our commitment to open communication and transparency with all the stakeholders, including our customers, investors, regulators, and the communities.
At the core of our ESG strategy framework lies the identification of key material aspects that are essential to both business operations and stakeholder interests. PEL’s materiality assessment adheres to the Global Reporting Initiative (GRI) Standard and involves comprehensive consultations with internal and external stakeholders.
Our materiality matrix is informed by 19 key aspects and is identified through peer benchmarking, leadership dialogues, ESG standards, ratings, and stakeholder engagement. These aspects are carefully mapped based on their impact on the organisation and stakeholder influence, guiding our business focus and contributing to sustainable development, in alignment with relevant UN Sustainable Development Goals (SDGs).
Throughout the past year, our efforts in tackling these pivotal material issues have transcended mere beginnings, evolving into impactful endeavours.
Our commitment to governance excellence is reflected in initiatives ensuring Board independence and diversity, supported by a dedicated sustainability committee, and working groups. Simultaneously, we also fortified our risk management framework through high-level TCFD analyses, enhancing our preparedness for climate-related risks.
Meanwhile, our efforts towards diversity and inclusion are evident in the increasing representation of women across our workforce and senior management. Upholding human rights, another crucial societal issue is enshrined in our ESG policy, ensuring that our operations prioritise respect for human dignity. This commitment is paralleled by our active engagement on social media, amplifying our ESG messaging and showcasing us as a responsible corporate citizen.
In our lending practices, we prioritised responsible lending, particularly in affordable housing and serving the under-served communities. Concurrently, our focus on financial inclusion is exemplified by the rising number of women borrowers, empowering individuals with access to financial resources. This dedication extends to crafting a comprehensive sustainable finance framework, aligning financial decisions with sustainability goals, while mandating ESG considerations for portfolio companies in our Alternatives business.
Our unwavering focus on data security and privacy has yielded strengthened measures, resulting in a breach-free year, showcasing our dedication to safeguarding sensitive information. Also embracing digitalisation, we enhanced customer convenience and efficiency through increased digital payments and streamlined complaint resolution processes. Our commitment to customer satisfaction is further reinforced by the development of a Net Promoter Score, enabling us to gain insights and deliver enhanced experiences.
Actively managing our climate impact, we have obtained a green building certification and calculated emissions for reduction, mitigating greenhouse gas emissions in line with our climate strategies. Finally, our offices are powered by renewable energy sources, reflecting our dedication to sustainable energy practices, and underscoring our holistic approach to ESG integration.
From laying the groundwork with initial steps to orchestrating substantial actions, our unwavering commitment shines through. This steadfast dedication epitomises our pledge to spearhead sustainable development and foster growth, while exceeding the expectations of all our stakeholders.
Financial inclusion and literacy are central to PEL’s operations, aiming to make finance accessible to underserved communities, crucial for fulfilling Bharat’s aspirations. The company supports this through various initiatives, ensuring financial services reach those in need.
This year, PEL introduced its Sustainable Finance Framework, integrating ESG criteria into operations to fuel its vision. The objective is to promote growth and improve lives by funding projects that empower Bharat’s transformation towards a sustainable future.
PEL’s Sustainable Finance Framework aligns with ICMA, Social Loan, and Green Loan Principles, with validation from S&P Global.
Funds from PEL’s Sustainable Finance Framework will exclusively support projects meeting global standards, including retail home loans, MSME loans, SME loans, Priority Sector Loans (in addition to RBI’s prescribed allocation), microfinance, green finance, and digital lending.
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