How your deposit funds emissions, and why baby steps to climate-proof Indian banking are not enough

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Synopsis
Public-sector banks are most exposed to climate risks as they lend to energy, metals, and mining sectors. While there are some encouraging small steps taken by a few key banks, others lag both in assessing material risks they face from the climate crisis and managing the risk their operations pose to the environment.

Has this ever crossed your mind? How does your bank manage to give you interest on the deposits parked with it? In what sectors does it deploy your money? Well, banks do not tell you where the investments are channelled. So, even if you have a strong opinion about climate change and the high-polluting industries responsible for it, you may be indirectly financing emissions in some of them. Unfortunately, the preparedness of Indian banks to