By 2001, we entered the general and life insurance businesses, extending protection tools to those seeking financial resilience. Financial inclusion thus came to be the core pillar that Bajaj Finserv was built on. We pursued financial inclusion long before it became a buzzword, digitisation before it was a megatrend, and insurance for the masses, before it became a crowded segment.

We focused on sustainability right from the start, inspired by the values of the Bajaj Group - that of contributing to the betterment of society and development of India.

Sustainability continues to be deeply intertwined with our businesses. As we expanded to become the largest and most diversified financial services business in India, every phase of our growth was fuelled by innovation and driven by a passion to create sustainable value - for our customers, communities and the country.

FY2025 was an extraordinary year for sustainability. Globally, the sustainability agenda saw a setback, influenced by political decisions. Notwithstanding a world of fragmented views, Bajaj Finserv's commitment to sustainability remained unfazed.

We believe the need for sustainability in business is bigger now than ever, given global uncertainties and implications of climate change.

I am pleased to share that in FY2025, we continued to make solid, steady progress toward our sustainability goals, much of which is detailed in the ensuing sections of this report.

Doing Well While Doing Good

Sustainability is one of our critical levers for transformative change.

Financial inclusion is an enabler of sustainability, given that it contributes to eight out of the 17 UN sustainable development goals.

For us at Bajaj Finserv, financial inclusion is not just a good sustainability strategy, it is also good business. Our product innovations and technology platforms have enabled us to significantly expand our access to credit, as well as products for financial protection and resilience. Thus, it has helped us do well while doing good.

Inclusion is evidenced across Bajaj Finserv's businesses.

In FY2025, Bajaj Housing Finance Ltd. (BHFL) launched Affordable Home Loans to enable individuals with cash-based or irregular income, and with no formal credit history, to own a home.

Our expansive footprint across India helped us serve customers at 4,000 locations, 340,000 active points of sale and through 225,000 insurance agents. This is in addition to being available through our digital channels that include Apps, web, social media and WhatsApp. In FY2025, BFL reached out to customers through its 418 microfinance branches, whereas Bajaj Allianz General Insurance Company Limited (BAGIC) and Bajaj Allianz Life Insurance Company Limited (BALIC) helped bridge the insurance gap through its 200+ branches in tier 2 and tier 3 towns.

During the year, BFL disbursed over ` 10,000 crore for 3-wheelers, enabling sustainable income generation for its customers. BAGIC's sum assured for 3-wheelers insured was ` 5,000+ crore in the last three years. In FY2025 alone, the sum assured for 3-wheelers was over ` 1,700 crore.

Economic empowerment of women also stood out as a key driver of inclusion.

In FY2025 alone, BFL's microfinance business provided group loans to over 3.45 lakh women. In insurance, women accounted for 22% of BAGIC's agents and 33% at BALIC; a total women agent count of over 65,000.

We Endeavour to be Carbon Neutral by 2032 (on Scope 1 & 2 Emissions)

We believe every business has an important role to play in limiting the average global temperature rise to 1.5 degrees celsius, thereby protecting the environment for the future.

While green initiatives have always been an area of focus for us, we are now shifting gears to accelerate progress on this front.

As part of our Long-Range Strategy, our companies are embedding sustainability across operations in support of global climate action for which we have, during the year, undertaken a decarbonisation study across the group through an external consultant.

In a significant step towards this, we are targeting to be carbon neutral by 2032. A roadmap targeting net-zero Scope 1 and 2 achieve this target. We see this as a milestone in our commitment to a sustainable future.

Carbon neutrality comes on the back of a strong approach to environment protection in FY2025. During the year, Bajaj Finserv continued to be a net generator of renewable power with its 138 wind turbines in Maharashtra generating more renewable electricity than the electricity consumed by all its companies.

We also played an active part in promoting clean energy. BAGIC issued over six lakh insurance policies in FY2025 for renewable energy projects yielding solar, wind and hydropower. During the period, BAGIC insured 0.194 million EVs, covering over 10% of India's EV market.

The year also saw BAGIC launching a series of environment friendly products such as EcoAssure, aimed at integrating sustainability into the insurance business.

BFL financed over 6,000 loans for solar panels in the last three years and 79,000+ EVs in FY2025 alone. The company's 'Zero Paper' initiative resulted in 95% digital KYCs, 92% E-Mandate adoption and 98% E-Agreements. This cut physical documentation from 23% to 13%. Over the past three years, digital applications have helped reduce paper consumption by more than 610 crore sheets, helping us save around 730,000 trees.

BHFL financed 21 Green Building projects, disbursing over `2,100 crore in FY2025.

The year also saw BFL announcing its plans to expand into Green Finance.

Technology is Shaping Sustainability

Bajaj Finserv companies have been among the largest and fastest adopters of data sciences and cloud technology. We are now at the cusp of yet another tech-led transformation with Artificial Intelligence.

AI is rewriting the way business is done in real time. Bajaj Finserv companies are using Gen AI to fast-track business transformation, to reimagine the use of data and customer engagement.

BFL's FINAI strategy, unveiled in FY2025, leverages AI to optimise operations, minimise costs, drive greater efficiencies, and improve controllership. It is also helping us reach more customers, serve them better and promote inclusive growth.

AI-driven initiatives come on the back of an on-going digital transformation across our companies. For instance, BAGIC serviced over half its customers using AI BOTs through over 48 million message exchanges. BALIC processed 4+ million transactions via WhatsApp in the past three years. The Bajaj Finserv App today has over 70 million net users and ranks among the top 5 financial apps on Google Playstore.

Bajaj Finserv Asset Management offered customers the ease of transacting digitally, at scale. In FY2025, it facilitated over 16,600 transactions via WhatsApp, with more than 7,800 customers actively using it.

Building a Better Tomorrow - For Youth and Children

Social progress is central to our sustainability strategy. In FY2025, we grew our Corporate Social Responsibility (CSR) initiatives manifold, with spends of ` 335.73 crore, invested across 265 projects that fall in two distinct areas: Youth Skilling and Comprehensive Child Development programmes.

Our skilling initiative, termed Skillserv, is focused on employability and entrepreneurship for youth and women from disadvantaged backgrounds. So far, it has benefitted 177,349 individuals through grants, and additionally, 47,000 individuals as recipients of our flagship Certificate Programmes in Banking, Finance and Insurance.

Children are the youth of tomorrow and we are committed to improving their well-being. Our programmes target areas such as child health, education, protection, and inclusion for Persons with Disabilities (PwD).

Over 25 lakh children have been empowered with education; 32,460 children have received healthcare by way of interventions, and over 43,000 children were supported through protection initiatives.

High Standards of Corporate Governance

Bajaj Finserv strives to foster a culture of transparency, ethics, responsible conduct and accountability across its subsidiaries, thus resonating the values of the Bajaj Group. In our continued effort to build longterm sustainable businesses, we are fully committed to regulatory compliance and achieving the highest standards of corporate governance.

The tone for corporate governance is set by, and starts with, the Board of Directors. Bajaj Finserv has a highly competent, qualified and an experienced Board, comprising directors from diverse backgrounds. Our Board provides strategic direction and guidance to the executive management on a range of matters, including strategy, operating plans, as well as proactive risk management.

Our strong governance framework ensures that over 60% of Board Committee members are Independent Directors, of which the Audit Committee and the Nomination & Remuneration Committee comprising entirely of independent members. The number of the Board and Committee meetings also exceed statutory requirements.

Our Board -adopted governance policies and codes, including those for ethics, fair disclosures, information and cyber security, are aligned with industry-best practices.

In Closing

We continue to build responsible businesses that promote financial inclusion, protect the environment, empower youth and contribute to broader economic growth.

We deeply appreciate the trust our customers have placed in us and the support we have received from investors.

I thank our partners and the 104,668-strong team at Bajaj Finserv companies for their efforts as we expand our sustainability initiatives.

Warm regards

SANJIV BAJAJ
Chairman and Managing Director
Bajaj Finserv Limited