On November 9, 2015 Trucost published a report entitled, “Natural Capital Risk Exposure of the Financial Sector in India”
Key findings of the report include the following:
- “Indian banks are primarily exposed to natural capital costs associated with water use (48% of natural capital costs), followed by land use (19%) and greenhouse gas emissions (12%).
- Indian banks are more exposed to natural capital risks than equity investors due to loans made to natural capital intensive sectors such as agriculture and power generation, as well as industries including food processing and iron and steel manufacturing. Government policy mandating loans to agriculture increases this exposure. Equity investors are less exposed due to the absence of agricultural companies in the Bombay Stock Exchange (BSE).”
You may read the key findings on the publications page of the Trucost internet site.
Trucost clients may download the report.