Our strategic commitment to sustainability is continually refined through peer benchmarking and proactive engagement with a diverse set of stakeholders, including customers, employees, regulators, investors, ESG rating agencies and communities. This iterative process allows us to prioritise the most critical environmental, social, and governance issues and solve them. As a result, integrating these insights across our businesses not only drives responsible growth and effective risk management but also fuels innovation, keeping us futureready and financially resilient in an evolving business landscape.

The commitment to integration transcends pure compliance. By proactively addressing environmental risks, fostering social equity, and upholding the highest governance standards, we enhance the long-term sustainability of our business model and the ability to attract responsible capital.

Our intersection of sustainability and business translates into greater operational efficiency, stronger customer loyalty, and a more engaged workforce, directly contributing to our financial performance and positioning Bajaj Finserv as a leader in responsible business.

As we navigate an increasingly complex global sustainability landscape, our conviction is clear - sustainable growth is the only path to long-term value creation, contribution to a healthier planet and prosperous communities.

Here's how sustainability is woven into our business practices.

Corporate governance at Bajaj Finserv Ltd. (BFS) and its subsidiaries is built on a foundation of ethical conduct and strict compliance with legal and regulatory requirements. We operate with integrity and transparency, supported by rigorous internal controls and a proactive approach to risk.

Our lending arm, Bajaj Finance Ltd. (BFL) drives financial inclusion using data to lend to new-to-credit customers and businesses. Its omnipresent strategy enables it to financially empower the underserved and women borrowers across India’s urban as well as remote locations.

In our insurance businesses, Bajaj Allianz General Insurance Company (BAGIC) meets the needs of farmers for crop insurance through Pradhan Mantri Fasal Bima Yojana (PMFBY). It also provides health insurance to the underserved by integrating with several government health schemes. Bajaj Allianz Life Insurance Company (BALIC) covers lives in the microfinance segment through Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). Both insurance businesses continued to outperform in their social sector obligations in FY2025 with BAGIC achieving 12% and BALIC ~16%, as against 5% stipulated by IRDAI.

BFL and BAGIC are playing an increasingly active part in sustainable finance and insurance to empower the underserved and encourage the transition to cleaner fuels and technologies.

We are leveraging technology and Gen AI across all BFS companies for better customer experience, reduced paper usage, improved efficiencies and energy savings.

Data privacy is a non-negotiable aspect of our business. We have adopted strong data privacy controls and robust policies. We continuously conduct regular audits of our processes and systems to protect customer data. We have institutionalised a Group Cyber Security Policy applicable to all BFS entities. It protects our information infrastructure, mitigates risk and reduces vulnerability to cyber incidents.

Accelerated effort to decarbonise

Climate change directly impacts social progress. We are hence accelerating our transition to a decarbonised business. We've set ourselves a goal to be carbon neutral in Scope 1 and Scope 2 emissions by 2032. Towards this, we undertook a decarbonisation study in FY2025, supported by an external consultant. Based on the decarbonisation strategy, we plan to implement projects in the coming year.

Advancing sustainability as we grow

In FY2025, we scaled our social impact initiatives, focussed on enhancing employability and economic opportunity for youth, with a fair share of resources dedicated to child health, education, protection, and inclusion of Persons with Disabilities.

We also made significant strides in obtaining sustainability certifications, including ISO 14001 Environmental Management System (EMS) and ISO 45001 Occupational Health and Safety Management System (OHSMS) certifications for Bajaj Finserv's head office at Pune. BFL, BAGIC and BALIC also obtained ISO 14001 and 45001 certifications for their major offices.

We believe that the intersection of sustainability and business is not just an ethical imperative, it is strategic.

Together with our customers, employees, partners and stakeholders, we look forward to making a meaningful contribution to a sustainable future.

Warm regards

RAMANDEEP SINGH SAHNI
Chief Financial Officer and Chief
Sustainability Officer