August 27, 2024 – Mumbai: Fedbank Financial Services Limited, one of India’s leading non-banking financial companies, has taken giant leaps in integrating the core operations with the principles of Environmental, Social, and Governance. This, according to its recently published Business Responsibility and Sustainability Report for the financial year 2023-24, has indicated various achievements and challenges.
Concentrate on Financial Inclusion
The financial inclusion factor is one of the major high points in Fedfina’s sustainability strategy. Sufficient importance has been given to the effort of the company in trying to bridge the financial gap for underprivileged sections of society. “Empower Emerging India”-that is, crystallization of Fedfina’s Vision Statement-gets reflected in the company’s product offerings: small-ticket LAP, affordable housing loans, and gold loans offered to individuals and businesses who have limited access to formal financial services.
In reaching these segments, Fedfina also increases her base in the process while aiding the socio-economic development of communities. The report shows that the Company avails inclusive financial services, which have been intended to ensure that individuals could save, invest, and secure their financial futures. This is in line with the aim of Fedfina to support financial inclusion while driving revenue growth.
Employee Well-being and Workplace Inclusivity
Another important concern of the BRSR is the care Fedfina has for its employees. The report goes into detail regarding steps taken to make the workplace safe and inclusive. With over 4,200 employees, Fedfina has pursued various measures aimed at ensuring the well-being of staff, including health insurance, maternity benefits, and accident insurance.
This report also underlines the initiative of Fedfina to make every level of the organization more inclusive and diverse. Despite the challenges, reasonable success has been achieved in building a positive workplace culture that respects the contribution of employees and encourages continuous learning. Recognition as a “Great Place to Work” by the Great Place to Work Institute, India, for the fourth consecutive year bears testimony to well-implemented employee engagement strategies at Fedfina.
Challenges in Environmental Sustainability
Though Fedfina has taken commendable steps toward social responsibility, the report acknowledges some setbacks in environmental sustainability. The company has barely begun to look into its carbon footprint, energy consumption, and waste management. These aspects are still at a very nascent stage, for which Fedfina realizes that somewhat more stringent strategies need to be devised to lessen the deterioration in the environment.
The report also outlines the role of digital innovation in bringing efficiency in operations and customer delight. Fedfina’s “phygital” distribution model, which combined physical with digital channels, has been the strong catalyst for its growth. The company introduced digital products such as doorstep gold loans and Digi Locker for customers to access credit limits digitally.
Governance and Ethical Practices
Business ethics and good governance are ingrained in Fedfina’s commitment to the core tenets of BRSR. It has a robust framework for governance wherein policies related to transparency, integrity, and accountability are well entrenched. Anti-bribery and anti-corruption policy and code of conduct are significant features of Fedfina in the area of governance.
The report also presents the strategy of engagement that the company enters into with all its stakeholders, namely customers, employees, investors, and local communities. Fedfina has put in place a proper grievance redressal mechanism for sorting out the concerns of its stakeholders and ensuring the operations align with the sustainability performance.
Outlook
As Fedfina continues to grow and expand its operations, the company remains committed to greater inclusions of ESG principles within its business strategy. In the report, it is described that the formation of measurable objectives would be directed toward the reduction of greenhouse gas emission, enhancement of energy efficiency, and improvement in social and governance practices. Fedfina envisions a long-term goal of building a sustainable and resilient business that would ensure financial performance delivery while having a positive impact on society and the environment.
Finally, Fedfina’s BRSR 2023-24 reflects the effort of the firm in balancing profitability with social responsibility. Though daunting tasks lie ahead to overcome, most prominently environmental sustainability, this focus on financial inclusions, employee wellbeing, and good governance places Fedfina at the top drawer of responsible business conduct in the NBFC sector in India.