Mumbai: Union Bank of India (UBI) has been awarded a CareEdge-ESG rating of 1+, with an impressive overall score of 81.3, reflecting its leadership in environmental, social, and governance (ESG) practices. The rating was conferred by Care ESG Ratings Limited, a premier ESG rating agency in India, highlighting UBI’s commitment to sustainable banking and inclusive governance.
This rating positions UBI well above the industry median of 61.7, reinforcing its reputation as a front-runner in responsible banking.
Pillar-Wise Performance Highlights
UBI’s strong overall rating is supported by high scores across the three ESG pillars:
- Social Score: 84.2 – Exemplary consumer protection with 98%+ grievance resolution and a 96.1 CSAT score, alongside strong workforce inclusion with 3.57% differently-abled employees.
- Governance Score: 82.3 – Robust regulatory compliance, ethical business practices, and ISO-certified risk management frameworks.
- Environmental Score: 70.4 – Proactive climate risk management, commitment to net-zero emissions by 2035, and expanded green financing in renewable energy, electric mobility, and energy-efficient housing.
Social Stewardship and Workforce Inclusion
UBI’s social initiatives have strengthened its ESG profile significantly:
- High grievance redressal with a CSAT score of 96.10 in FY25.
- Inclusive workforce policies, with differently-abled employees comprising 3.57% of total staff.
- Women borrowers now represent 46.93% of total loans, while the female-to-male pay ratio stands at 86.5 per 100.
- Robust programs in employee welfare, training, and diversity, equity, and inclusion (DEI).
Strong Governance Framework
UBI’s governance practices emphasize transparency, ethics, and accountability:
- 100% of Key Managerial Personnel (KMPs) trained in Business Responsibility and Sustainability Reporting (BRSR).
- Comprehensive internal policies on ethics, anti-corruption, and anti-bribery applied across the supply chain.
- ISO 31000-compliant Enterprise Risk Management systems ensuring robust oversight.
Environmental Leadership and Sustainability Efforts
UBI demonstrates proactive climate action in line with global best practices:
- First major Indian bank to join the Partnership for Carbon Accounting Financials (PCAF) to measure financed emissions.
- Commitment to net-zero emissions in operations by 2035.
- Renewable energy consumption at 1.82% of total energy, significantly above the industry median of 0.53%.
- Focus on green financing in renewable energy, electric mobility, and energy-efficient housing projects.
Areas for Improvement
While UBI leads in ESG practices, the rating report identifies areas for further enhancement:
- Establishment of a standalone human rights policy.
- Improving gender diversity in senior leadership and Board positions.
- Further reduction in Scope 1 and Scope 2 emission intensities per employee.
About Union Bank of India
Union Bank of India is one of the leading public sector banks in India, known for its commitment to sustainable banking, financial inclusion, and technological innovation. With a nationwide presence and a strong focus on ESG initiatives, UBI continues to drive responsible growth and value creation for all stakeholders.
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