Bajaj Finserv targets carbon neutrality by 2032

MUMBAI: Bajaj Finserv has committed to becoming carbon neutral on Scope 1 and 2 emissions by 2032, with a detailed roadmap underway following a decarbonisation study conducted in FY25. Chairman Sanjiv Bajaj, in his annual letter to shareholders, said sustainability, financial inclusion and innovation remain the group’s guiding themes.



“We are targeting to be carbon neutral by 2032. A roadmap targeting net-zero Scope 1 and 2 emissions is being developed to achieve this target. We see this as a milestone in our commitment to a sustainable future,” Bajaj said.



The company is backing its pledge with green financing and renewable initiatives. Bajaj Finance announced plans to expand into Green Finance in FY25 and financed over 79,000 electric vehicles during the year. Bajaj Allianz General Insurance insured 0.194 million EVs, covering over 10% of India’s EV market, while Bajaj Housing Finance disbursed over Rs 2,100 crore for 21 green building projects. BAGIC also launched EcoAssure, a new line of environment-friendly products.



Bajaj stressed that inclusion is central to the company’s ESG agenda. “For us at Bajaj Finserv, financial inclusion is not just a good sustainability strategy, it is also good business,” he said. In FY25, Bajaj Housing Finance rolled out affordable home loans for borrowers with irregular income or no credit history, while Bajaj Finance expanded its microfinance operations through 418 branches and disbursed group loans to more than 3.45 lakh women.



The group also scaled up social investments under the Bajaj Beyond programme, a Rs 5,000 crore initiative announced in 2024 that aims to impact two crore Indians in five years. CSR expenditure rose to Rs 336 crore in FY25 from Rs 247 crore the year before, with total beneficiaries rising to 41 lakh from 15 lakh. Its Skillserv and Certificate Programmes in Banking, Finance and Insurance (CPBFI) trained thousands of young people, with CPBFI receiving recognition as an awarding body from NCVET. Project Odiserv, launched in partnership with the Ministry of Skill Development, extended the programme to 60 colleges in Odisha.



Women’s empowerment was a major focus. Bajaj said: “Economic empowerment of women stood out as a key driver of inclusion.” Over the past three years, the group extended loans of more than Rs 1.2 lakh crore to 17 million women borrowers. Leadership programmes such as INFINITY and ILLUMINATE were launched in FY25 to strengthen the pipeline of women leaders.



On governance, the company strengthened its ESG assurance framework by appointing SGS India as its new assurance partner. For FY25, it secured Reasonable Assurance for nine core BRSR attributes and Limited Assurance for remaining KPIs, in line with SEBI rules. Bajaj Finserv also hosted its first group Investor Day to showcase its businesses.



Technology is being positioned as a force multiplier. “AI is rewriting the way business is done in real time. Our companies are using Gen AI to fast-track business transformation, to reimagine the use of data and customer engagement,” Bajaj said. Bajaj Finance unveiled its FINAI strategy in FY25 to improve efficiency and reach, with over 300 AI projects running across the group. The company also accelerated its “Zero Paper” initiative, achieving 95% digital KYCs and cutting paper consumption by more than 610 crore sheets over three years.



Bajaj concluded that sustainability will remain integral to future growth. “We continue to build responsible businesses that promote financial inclusion, protect the environment, empower youth and contribute to broader economic growth,” he said.