ESAF Small Finance Bank Secures Industry-Best ESG Rating Of 75.4 From Careedge

Dr. K. Paul Thomas, MD & CEO, ESAF Small Finance Bank, receiving the certification for the latest CareEdge ESG rating from Nikunj Dube, Chief Rating Officer, CareEdge ESG Ratings. George K. John, Executive Director, ESAF; Bosco Joseph, Executive Vice President, ESAF; Sandhya Suresh, Head – Sustainable Banking, ESAF, are also present.

KOCHI:

ESAF Small Finance Bank has received one of the highest ESG Ratings in the Indian banking sector, with CareEdge ESG Ratings upgrading the Bank’s score to 75.4, placing it in the prestigious CareEdge-ESG 1 category. The upgraded score marks a significant improvement from last year’s 68.1 and reflects the Bank’s strong performance across Environmental, Social, and Governance parameters. According to the rating report, CareEdge has marked ESAF SFB’s ESG standing as a “Leadership Position with Best-in-Class Disclosures”, recognising the Bank’s robust policies, transparency in reporting, and effective management of ESG risks. This rating is considered to be one of the highest awarded within the SEBI-aligned ESG assessment framework. The upgraded rating highlights ESAF’s long-term sustainability roadmap, comprehensive risk governance, and industry-leading initiatives in financial inclusion. CareEdge noted that the Bank demonstrated exceptional performance in the Social pillar, scoring 82.6—well above the industry median. ESAF’s community development programmes, priority-sector lending focus, and women-centric financial inclusion model were recognised as key strengths.

The rating agency also acknowledged ESAF’s strong governance practices, supported by board-approved ESG policies, ISO-certified processes, high data security standards, and 100% BRSR-compliant training for board members. With zero data breaches in the past year and a dedicated cybersecurity framework, ESAF continues to set benchmarks in responsible governance. On the environmental front, ESAF has shown progressive strides through its adoption of renewable energy, climate-risk management initiatives, and expansion of its green finance portfolio. While still at an early stage, the Bank has committed to accelerating its climate-aligned lending and strengthening third-party verification of environmental data in the coming years.

Speaking on the milestone, Dr. K. Paul Thomas, MD & CEO, ESAF Small Finance Bank, said: “This upgraded ESG rating reflects our commitment to responsible banking and inclusive development. At ESAF, sustainability is integral to our mission, and this recognition further strengthens our resolve to create long-term impact for the communities we serve.” He further stated, “We will continue to uphold the highest ethical and governance standards as we guide the bank into the future. While this recognition is a moment of pride, it is also a responsibility.”

CareEdge highlighted that ESAF continues to outperform peers in customer protection, rural outreach, and women-centric lending. With 25.4% of its branches located in unbanked rural centres and nearly 80% of its staff women, the Bank remains a leader in inclusive finance. The ESG Rating of 75.4 positions ESAF Small Finance Bank among the top-performing institutions under the SEBI-regulated ESG framework, reinforcing its role as a purpose-driven financial institution focused on transparency, sustainability, and social progress.