IndusInd Bank Joins PCAF to Strengthen Carbon Accounting and Sustainable Finance
IndusInd Bank Limited has joined the Partnership for Carbon Accounting Financials (PCAF), marking another step in the bank’s sustainability and climate-focused initiatives.
The announcement was made on August 17, 2026, and the bank informed the stock exchanges about the development on August 18, 2026.
IndusInd Bank Joins Global Carbon Accounting Initiative
PCAF is a global collaboration of financial institutions working to establish a harmonised approach for measuring and disclosing greenhouse gas (GHG) emissions associated with financial activities.
According to IndusInd Bank, joining the partnership will help strengthen its approach to measuring and managing emissions associated with its lending and investment activities.
The initiative is expected to support greater transparency in climate-related disclosures and help the bank develop a framework for assessing the carbon footprint of its financial portfolio.
Focus on Measuring Financed Emissions
For banks and other financial institutions, a significant portion of their climate impact can be associated with the activities they finance through lending and investments.
By adopting the PCAF methodology, IndusInd Bank aims to establish a credible baseline for emissions associated with its financial activities. This could help the bank identify opportunities to reduce emissions across sectors and better understand climate-related risks.
The bank also expects the framework to support customers as they transition towards lower-carbon business models.
PCAF has more than 750 financial institutions participating globally and has emerged as a widely used framework for accounting for Scope 3 Category 15 emissions, which relate to financed emissions.
IndusInd Bank’s Sustainable Finance Focus
IndusInd Bank said it has been steadily advancing its sustainable finance agenda.
The bank has been financing areas including:
- Renewable energy
- Energy efficiency
- Sustainable infrastructure
- Other climate-positive sectors
The adoption of the PCAF methodology is expected to complement these initiatives by providing a structured approach to measuring emissions associated with the bank’s financial activities.
The bank intends to use the resulting information to identify decarbonisation opportunities and strengthen its climate-related risk management and disclosures.
ESG Integration into Business Strategy
IndusInd Bank said environmental, social and governance (ESG) considerations are being integrated into its business strategy and risk management processes.
The partnership with PCAF is positioned as an important milestone in the bank’s sustainability journey, particularly in improving transparency around financed emissions.
For financial institutions, carbon accounting can help provide greater visibility into the climate impact of lending and investment portfolios while supporting the development of longer-term decarbonisation strategies.
About IndusInd Bank
IndusInd Bank has been operating for more than three decades and provides banking and financial services to retail customers, businesses, government entities and public-sector organisations.
Its product portfolio includes microfinance, personal loans, debit and credit cards, SME loans, digital banking, affluent and NRI banking, vehicle finance and ESG-linked financial products.
As of June 30, 2026, the bank served approximately 42 million customers through 3,137 branches and banking outlets and 2,853 ATMs across India.
The bank also said its network reaches approximately 1.60 lakh villages across the country.
IndusInd Bank operates representative offices in Dubai and Abu Dhabi to serve the Indian diaspora.
Digital Banking Remains a Key Focus
Technology continues to be an important part of the bank’s strategy through its Digital 2.0 initiative.
The bank offers digital banking services through multiple channels, including INDIE, its digital banking platform designed as a one-stop solution for customers.
The bank also holds clearing bank status for the BSE and NSE and settlement bank status for NCDEX, besides being an empanelled banker for MCX.
IndusInd Bank Ratings
The bank’s stated domestic ratings include:
- CARE A1+ for Certificate of Deposits
- CRISIL A1+ for the Certificate of Deposit and short-term FD programme
- CRISIL AA+ for Infrastructure Bonds and Tier 2 Bonds
- IND AA+ issuer rating from India Ratings and Research
- IND AA+ for Senior Bonds and Tier 2 Bonds from India Ratings and Research
For its international rating, the bank has stated a Ba1 rating for its Senior Unsecured MTN programme from Moody’s Investors Service.
What is PCAF?
The Partnership for Carbon Accounting Financials (PCAF) was launched globally in September 2019.
The initiative brings financial institutions together to develop and implement a common approach for measuring and reporting greenhouse gas emissions associated with financial activities.
PCAF signatories work collectively on the Global GHG Accounting and Reporting Standard for the Financial Industry.
The framework is designed to help financial institutions measure financed emissions and subsequently assess climate-related risks, establish climate targets and develop strategies to decarbonise their portfolios.
Why the PCAF Partnership Matters for IndusInd Bank
IndusInd Bank’s participation in PCAF can provide a structured methodology for understanding the emissions associated with its lending and investment portfolio.
The move is particularly relevant as financial institutions face increasing expectations around climate-related disclosures, sustainable finance and portfolio-level emissions management.
For IndusInd Bank, the partnership could help strengthen its ESG reporting framework while supporting the identification of sectors and customers where decarbonisation opportunities exist.
The bank’s focus on renewable energy, energy efficiency and sustainable infrastructure also provides a foundation for expanding its sustainable finance activities.
Conclusion
IndusInd Bank’s decision to join PCAF represents a further step in its efforts to integrate sustainability and climate considerations into its banking operations.
By adopting PCAF’s carbon accounting methodology, the bank aims to improve transparency around financed emissions, strengthen climate-related risk management, and identify opportunities to support customers transitioning towards lower-carbon business models.
As sustainable finance becomes an increasingly important part of the financial sector, the PCAF partnership could play a role in shaping IndusInd Bank’s long-term ESG and climate strategy.
Disclaimer: This article is based on the press release issued by IndusInd Bank Limited on August 18, 2026. It is intended for informational purposes only and should not be considered investment advice or a recommendation to buy or sell securities.