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Project Details


State Bank of India ESG Financing Framework Second-Party Opinion (2023)


State Bank of India

Project Type

Sustainability Bond/Loan

Industry Group


Use of Proceeds

Clean transport; Climate change adaptation; Eco-efficient products; Green buildings; Energy efficiency; Natural resources/land use management; Renewable energy; Water/waste water management; Access to essential services; Affordable basic infrastructure; Affordable housing; Employment generation; Food security; Socio-economic advancement; Pollution prevention and control;



Evaluation Date

Jan 2023

Evaluation Summary

Sustainalytics is of the opinion that the State Bank of India ESG Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Green Loan Principles 2021, Social Bond Principles 2021 and Social Loan Principles 2021. This assessment is based on the following: 


The 16 eligible categories1 for the use of proceeds are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impact and advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 4, 6, 7, 8, 9, 11, 12, 13, 14 and 15. 


State Bank of India has established a Sustainability Committee to oversee the process of project evaluation and selection in accordance with the eligibility criteria of the ESG Financing Framework. The Sustainability Committee will be chaired by the Chief General Manager of the Credit Policy and Procedures Department and will comprise senior representatives from State Bank of India’s Credit Policy and Procedures, Agriculture Banking, Small and Medium Enterprise Banking, CSR and Sustainability, Treasury and International Banking departments. The State Bank of India has processes in place to identify and manage ESG risks associated with the eligible projects. Sustainalytics considers the risk management systems to be adequate and project selection process to be in line with market practice.  


The Sustainability Committee will oversee the allocation of proceeds on a quarterly basis. State Bank of India intends to develop a labelling mechanism to track and monitor the allocation of proceeds and allocate net proceeds within 24 months of issuance. Pending allocation, unallocated proceeds will be temporarily held in money market instruments or government securities. This is in line with market practice.  


State Bank of India intends to report on the allocation of proceeds and corresponding impact annually until full allocation. The allocation report will be published on the State Bank of India’s website, and the impact report will be made available to the investors. The allocation report will include the amount of proceeds to be allocated to the eligible projects, the eligible project examples, the proceeds allocated as per geographical distribution, the amount of unallocated proceeds and the share of financing versus refinancing. The State Bank of India is committed to reporting on relevant impact metrics where feasible. Sustainalytics views The State Bank of India’s allocation and impact reporting as aligned with market practice.