CAIIB · HRM

Corporate sustainability

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Human Resources Management (Elective) — CAIIB.

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Q

What is corporate sustainability in the context of banking?

A

Corporate sustainability in banking refers to a bank's ability to create long-term value by integrating environmental, social, and governance (ESG) factors into its business strategy, operations, and risk management alongside traditional financial performance.

Q

What is the concept of natural capital and its relevance to banking?

A

Natural capital refers to earth's natural resources that support economic activity.

Q

What does the triple bottom line concept mean for banks?

A

The triple bottom line requires banks to account for three dimensions of performance: economic (profit), social (people), and environmental (planet), ensuring that profitability does not come at the expense of society or the environment.

Q

What is the Principles for Responsible Investment (PRI) framework?

A

PRI is a UN-supported framework guiding investors to incorporate ESG factors.

Q

What is the role of RBI in promoting sustainable banking in India?

A

RBI has issued guidelines on sustainable finance, encouraged banks to adopt ESG risk frameworks, and directed them to disclose climate-related financial risks, aligning Indian banking with global sustainability standards.

Q

What is carbon footprint disclosure and why do banks report it?

A

It measures greenhouse gas emissions to demonstrate climate accountability to stakeholders.

Q

What are ESG criteria in the context of corporate sustainability?

A

ESG criteria are Environmental (carbon footprint, water usage), Social (employee welfare, community impact), and Governance (board structure, transparency) factors used to evaluate a company's sustainability and ethical impact.

Q

What is SEBI's mandate regarding BRSR for listed companies?

A

SEBI mandates top 1000 listed companies to file BRSR from FY 2022-23.

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