Climate Risk Disclosure in Indian Banking: A Study of Voluntary Practices & Framework Adoption

Climate change poses systemic risks to financial institutions through physical hazards, transition risks, and liability exposures. This study examines the climate risk disclosure practices and operational greenhouse gas (GHG) emissions of four major Indian private banks, Axis Bank, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank, over the period FY2022 to FY2025. Using content analysis of sustainability reports, annual reports, and CDP submissions, we assess alignment with the Task Force on Climate-related Financial Disclosures (TCFD) framework and the Carbon Disclosure Project (CDP) standards. Our analysis reveals significant heterogeneity in disclosure quality, with HDFC Bank and ICICI Bank demonstrating more comprehensive TCFD-aligned reporting, while Axis Bank and Kotak Mahindra Bank exhibit gaps in scenario analysis and financed emissions disclosure. Quantitative analysis of Scope 1 and Scope 2 emissions shows that Axis Bank's Scope 2 emissions increased at a compound annual growth rate (CAGR) of 24.9 percent, driven by branch network expansion, whereas ICICI Bank achieved a -6.7 percent CAGR in Scope 2 emissions through renewable energy procurement and energy efficiency initiatives. The findings underscore the need for standardized climate risk metrics, enhanced regulatory guidance, and capacity building to strengthen climate resilience in India's banking sector. This research contributes to the emerging literature on climate finance in emerging markets and provides actionable insights for policymakers, investors, and bank management. 

Keywords: climate risk disclosure, TCFD, CDP, greenhouse gas emissions, Indian banks, sustainability reporting, operational emissions