Key Quantitative Figures

  • ESG Score (Adjusted) for FY 2025-26: 80.2
  • Previous ESG Score for FY 2024-25: 79.7
  • Year-on-Year Change: +0.5 points improvement
  • Environmental Score: 76 (up from previous year)
  • Social Score: 80 (broadly stable)
  • Governance Score: 82 (improved from previous year)
  • Industry Median ESG Score: 76
  • Industry Max ESG Score: 83
  • Number of Plants: 0
  • Number of Offices: 23
  • Women Workforce Representation: 39.3%
  • Sexual Harassment Complaints: 2 in FY 2025-26
  • Customer Complaints: Over 1 lakh in each of last three financial years
  • Waste Recovery Rate: ~93% in FY 2025-26
  • Scope 1 Emissions: 98 tCO2e (down from 198 tCO2e in FY 2024-25)
  • Scope 2 Emissions: 2,136 tCO2e (down from 2,461 tCO2e in FY 2024-25)
  • Total Waste Generated: 120.920 MT (up from 94.033 MT in FY 2024-25)
  • CSR Expenditure: ₹57.01 Crores (met prescribed 2% requirement)

Dates of Action

  • Rating Report Date: September 04, 2026
  • Company Intimation Date: September 05, 2026
  • Time of Event: September 04, 2026 at around 10:21 PM
  • Data Period: FY 2025-26 (April 2025 - March 2026)

Parties Involved

  • Rated Entity: SBI Cards and Payment Services Limited
  • Rating Provider: SES ESG Research Private Limited (SEBI Registered ESG Rating Provider, Registration #: IN/ERP/Category-II/0002)
  • Assurance Provider: SGS India Pvt. Ltd (provided reasonable assurance for BRSR Core parameters)
  • Regulatory References: SEBI (LODR) Regulations, 2015 - Regulation 30

Purpose and Rationale

The disclosure is made to comply with SEBI Listing Regulations requirements for material events. The ESG rating provides an assessment of the company's environmental, social, and governance performance based on FY 2025-26 data.

Performance Highlights

Environmental Performance Improvement
  • Reduced non-renewable energy consumption by 11.12% in FY 2025-26
  • Lower Scope 1 and Scope 2 emissions
  • Increased renewable energy usage (7.54% of total energy consumption)
  • Approximately 93% waste recovery achieved
  • Smart energy optimization saved 20,000 units annually
  • Infrastructure upgrades saved 12,000 kWh annually
Environmental Challenges
  • Scope 3 emissions increased in absolute and relative terms
  • Waste intensity linked to turnover remains above industry benchmark
  • Waste generated increased to 120.920 MT from 94.033 MT
Social Performance

Strengths:

  • 39.3% women representation in workforce (significantly above industry benchmark)
  • Zero work-related fatalities for three consecutive years
  • Zero data breaches reported in last three FYs
  • Zero complaints on data privacy and cyber security since FY 2023-24
  • 100% return to work rate for employees in FY 2025-26

Concerns:

  • 87% of workforce (non-permanent employees) not covered for skill development and Health & Safety training
  • Material gender pay gap (more than 20% difference in median remuneration)
  • Limited disclosure on benefits for non-permanent employees
  • 2 sexual harassment complaints in FY 2025-26
  • Over 1 lakh customer complaints in each of last three financial years
  • Less than 1% of wage cost spent on employment in rural and semi-urban regions
Governance Performance

Improvements:

  • Greater Board diversity (3 women directors including 2 independent women directors)
  • ESG-linked executive remuneration implemented
  • No regulatory penalties imposed during FY 2025-26
  • Zero disciplinary actions on charges of bribery & corruption
  • No qualifications in statutory auditor's report

Concerns:

  • Mr. Shriniwas Yeshwant Joshi classified as Non-Independent Director due to prolonged association (15 years with group)
  • Ms. Anuradha Rao classified as Non-Independent Director due to ex-Executive position with promoter company
  • Chairperson of Audit Committee and Nomination & Remuneration Committee is same person
  • Non-disclosure of individual Independent Directors' fees
  • Dividend Distribution Policy not considered objective by SES

Capital Structure Impact

No direct impact on capital structure disclosed in this ESG rating report.

Financial Impact

The disclosure does not quantify specific financial impact. The ESG rating may indirectly influence investor perception and cost of capital, but no direct financial implications are specified.

Forward-looking Information

The company has disclosed several sustainability targets:

  • Reduce Scope 2 emissions by 50% by FY 2027 (baseline FY 2019)
  • Achieve Carbon Neutrality by 2030
  • Digitize 85% of welcome kits by FY 2027 (already achieved 90%)
  • Adopt recycled plastic cards and increase volume to 25% by FY 2030 (currently at 16.89%)
  • Contribute ₹50 Crores towards environmental initiatives by FY 2028-29 (already contributed ₹49.77 Crore)
  • Increase women representation in permanent employees to 29% by FY 2026-27 and 35% by FY 2028-29
  • Increase PwD representation in permanent employees to at least 1% by FY 2026-27 (currently at 0.6%)

Attachment

The ESG report from SES ESG Research Private Limited is enclosed with the disclosure.