ESG Risk Assessment | BFSI Sector

Identification and mitigation of ESG risks for multiple companies in the BFSI sector

Client

Multiple BFSI sector companies in growth stage

Problem

Identification & mitigation of ESG risks in BFSI sector companies at the time of investment appraisal by PE investors and recommendations of an ESG Action Plan

Solution

  • Sub-sectors: PE funds, commercial banks, fintech, insurance, NBFC, microfinance, etc.
  • Interactions with promoters & business heads of potential investee companies to understand the business model and its interaction with ESG components & screening
  • Focus on ESG risks such as client protection, data privacy & information security, collection practices, HR practices
  • Preparation of E&S Action Plan with priority & timeline

Impact

  • Evaluate screening criteria: preventing investments in environmentally & socially excluded sectors
  • Identified governance risks on time, which resulted in investors abstaining from the deal
  • Improving investee practices on HR, emergency preparedness & response in offices, client protection