These types of green projects to receive special 'Green Bonds' as per SBI's new ESG framework

Ask Indians to visualise any bank, and most will think of the State Bank of India (SBI). This bank has become synonymous with core Indian values — and for good reason too; it is the oldest commercial bank we have, and the largest in many accords as well. And now, it has begun spear-heading green finance as well, with the issuance of green bonds and a new ESG framework.

In case you're unfamiliar with Environmental, Social and Governance (ESG), it refers to a framework that places environmental and social sustainability at the core of all business practices. In addition, certain "Green Projects" contribute exceptionally towards the 15 Sustainable Developmental Goals laid down by the United Nations, and are, therefore, eligible for financing by green bonds, which provide handsome tax incentives.

If your project falls under the following categories, it may be eligible for green financing per SBI's new ESG framework.

• Biodiversity projects that seek to preserve terrestrial or marine natural habitats or indulge in landscape conservation and deforestation mitigation.
• Projects that contribute to a circular economy by producing end-products from recycled or waste products or even production of bio-based low-carbon products.
• Transportation projects that seek to manufacture or develop cleaner transportation, such as electric or hydrogen public and non-public vehicles. This also includes projects dealing with manufacturing and recycling rechargeable batteries and fuel cells.
• Projects that seek to monitor and forecast temperature, wind, water and land-related climate hazards and infrastructure to mitigate damage from the same.
• Energy efficiency projects such as smart grid technologies seek to reduce the energy load on industrial and manufacturing processes. For domestic purposes, this could also include companies that manufacture intelligent household products such as metres and energy-efficient LED lighting.
• Green building projects that seek to construct buildings certified as gold or platinum by the LEED or as excellent and above by the BREEAM.
• Natural resource projects that deal in sustainable fisheries and aquaculture.
• Projects that produce energy from renewable sources such as solar power, wind energy, hydro energy, or even from recycled sources such as agriculture, forestry or municipal solid waste.
• Sustainable water and wastewater management projects that develop or manufacture technology and infrastructure for clean water, rainwater harvesting systems, wastewater treatment, horticulture irrigation, as well as solar photovoltaic pump sets.
• Waste management projects that help waste collection and recycling. This also includes air pollution control projects approved by India's Commission for Air Quality Management (CAQM).

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