The process of incorporating ESG into our business and financing decisions began by adopting a board approved ESG Policy. We began our journey of responsible lending through ESG due diligence during the credit phase, a process to ensure ESG compliance and develop action plan for improvement. Our ESG policy ensures that our services and operations are socially and financially sustainable and reflect a shift towards promoting environmental sustainability. We have appointed a dedicated ESG team for driving the implementation of ESG plans & strategy signalling our ESG commitment.

ESG Policy

On-site Emergency Policy
Environment Policy
Employee health and safety policy
Waste Management Policy
Stakeholder Engagement Plan
Code Of Responsible Investing
Policy on Prohibited Activities
Procurement Policy

Kogta Financial (India) Limited (KFL) is committed to function as a responsible business, with an aim to fully align with and contribute to good Environmental, Social and Governance (ESG) practices. We have applied the principles of materiality in assessing the issues, opportunities and challenges that have a material impact on our business, and our ability to deliver sustained value to our shareholders and key stakeholders. Materiality assessment allows us to recalibrate our strategy and serves as an opportunity to address emerging risks and leverage opportunities to future-proof our business. We believe that high standards for ESG in our business is critical and we expect our stakeholders to adopt similar practices, to the extent possible. The detailed ESG vision and commitments are expressed in the KFL’s ESG policy framework (“Policy”).

KFL integrates ESG criteria into its operations and financing decisions for screening the material ESG risks and Opportunities of every product offered. This ensures that our services and operations are sustainable from an environmental, social, and financial perspective. The integration of ESG into our financing decisions starts from due diligence through the credit phase.

Our products are subject to ESG due diligence, which involves screening for potential ESG risks and ensuring ESG compliance. Each proposal undergoes a quantitative assessment through an ESG checklist and has to achieve a minimum ESG risk score to proceed further. Proposals not meeting the minimum required ESG risk score go through another high-level screening by senior management. KFL adheres to the ADB (Asian Development Bank) prohibited investment activities list and the IFC (International Finance Corporation) Performance Standards on Social & Environmental Sustainability and strictly avoids doing business with any excluded entity. During the screening or diligence process, if material risks are identified, the borrower must develop an action plan to mitigate these risks or monitor ongoing progress on ESG aspects, as appropriate. We also obtain a declaration from our borrowers and vendors confirming compliance with our transparent and non-discriminatory ESG commitments outlined in our ESG policy.

We as a Company envision integrating the criteria of ESG risks and value creation opportunities into our lending operations, while ensuring that our financial services are compliant to the social and environmental laws of the land, adopt good governance practices and follow International guidelines. To ensure this we have adopted following practices

1. Product Screening

Every product offered by us will be screened for material ESG risks and impacts. The early stage ESG risk assessment will rely on primary information furnished by the borrower and accurate contextual information available from the field investigations. The ESG screening of products will validate the respective purpose of the product sought, primarily against the borrower’s ability to help us promote our ESG vision.

2. Monitoring and Evaluation

In case of material risks identified during the screening or diligence process, the borrower will develop a mitigation/ action plan to mitigate these risks, or monitor ongoing progress on ESG aspects, as applicable. Where management of, or performance on, a material risk needs improvement, we will support the borrowers in the development of an action plan.