Capri Global Capital Joins Global Carbon Accounting Alliance PCAF, Advancing Climate Transparency in India’s Financial Sector

Capri Global Capital Limited (Capri Loans), one of India’s leading non-banking financial companies (NBFCs), has joined the Partnership for Carbon Accounting Financials (PCAF), marking a significant step in its climate transparency and sustainable finance journey.

By becoming a signatory to the global carbon accounting initiative, Capri Loans has committed to adopting internationally recognised methodologies to measure and disclose greenhouse gas emissions associated with its lending and investment portfolio — commonly referred to as financed emissions. The move reflects the company’s growing focus on climate accountability, risk-aware lending practices and alignment with evolving sustainability expectations in financial markets.

The decision positions Capri Loans among a rapidly expanding group of financial institutions worldwide seeking to integrate climate considerations into core financial decision-making. As climate risk increasingly influences capital allocation, regulatory oversight and investor expectations, measuring financed emissions has become a foundational component of responsible finance.

For Capri Loans, joining PCAF signals both strategic alignment with global sustainability standards and a recognition that financial institutions play a pivotal role in enabling low-carbon economic transition.

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Adopting Global Carbon Accounting Standards for Financial Portfolios

As part of its PCAF membership, Capri Loans will adopt the initiative’s Global GHG Accounting and Reporting Standard for the Financial Industry — a widely recognised framework that enables financial institutions to quantify emissions linked to loans, investments and other financial exposures.

Unlike direct operational emissions, financed emissions reflect the carbon footprint of the economic activities that financial institutions support through lending and investment. Measuring these emissions provides insight into the climate impact of financial portfolios and helps institutions understand exposure to transition risks associated with carbon-intensive sectors.

By implementing PCAF methodologies, Capri Loans aims to enhance the accuracy, consistency and comparability of its climate disclosures. This approach allows emissions data to be reported in a structured and internationally aligned manner, enabling stakeholders to assess climate performance more effectively.

The adoption of carbon accounting standards also supports the integration of climate considerations into credit assessment, portfolio management and long-term strategy — areas increasingly influenced by environmental risk factors.

Integrating Climate Risk into Lending and Investment Decisions

The integration of PCAF standards will enable Capri Loans to incorporate climate risk analysis more systematically into its lending and investment processes. This development reflects a broader shift across financial institutions toward embedding environmental risk considerations within core financial decision-making rather than treating sustainability as a separate initiative.

By measuring financed emissions, Capri Loans can better evaluate exposure to sectors vulnerable to climate transition pressures, regulatory shifts or technological disruption. Such insights support more informed credit evaluation, portfolio diversification and capital allocation strategies.

The company indicated that aligning disclosures with internationally accepted frameworks is a central objective of the partnership. Transparent reporting practices not only strengthen internal risk governance but also enhance confidence among investors, regulators and stakeholders assessing climate-related financial risks.

This evolution mirrors a global trend in sustainable finance, where climate risk is increasingly understood as a financial risk with material implications for asset quality, long-term performance and institutional resilience.

Leadership Perspective: Climate Responsibility and Opportunity

Commenting on the partnership, Jinisha Sharma, Principal – ESG & Impact Investments at Capri Global Capital, emphasised the dual responsibility and opportunity facing financial institutions in emerging economies undergoing climate transition.

She noted that India’s transition toward a lower-carbon economy creates both environmental obligations and investment opportunities for lenders and investors. Financial institutions, she said, play a critical role in enabling sustainable growth by measuring and managing financed emissions across their portfolios.

Joining PCAF represents a significant step in strengthening climate risk governance and ensuring that disclosures are transparent, data-driven and aligned with global standards. Sharma added that Capri Loans remains committed to supporting India’s transition to a low-carbon economy while creating long-term value for stakeholders.

Her remarks underscore how sustainability considerations are increasingly linked to financial strategy, risk management and market positioning within the financial services sector.

Understanding PCAF: A Global Alliance for Financial Climate Transparency

The Partnership for Carbon Accounting Financials is a global collaboration of financial institutions working to harmonise the measurement and disclosure of greenhouse gas emissions associated with financial activities. The initiative provides methodologies enabling banks, insurers, asset managers and lenders to calculate financed emissions across asset classes.

With more than 700 participating financial institutions spanning six continents, PCAF has become one of the most widely adopted frameworks for climate-related financial disclosure. Its Global GHG Accounting and Reporting Standard enables consistent reporting across markets and institutions, supporting comparability and transparency.

For financial institutions, participation facilitates alignment with emerging climate disclosure expectations and supports integration with broader sustainability reporting frameworks. The initiative has gained prominence as regulators and investors increasingly require clearer insight into how financial portfolios contribute to or mitigate climate change.

Capri Loans’ participation therefore situates the company within an international network of institutions advancing climate accountability in finance.

Aligning ESG Strategy with Long-Term Growth Objectives

Capri Global Capital indicated that joining PCAF is part of a broader effort to embed environmental, social and governance (ESG) considerations into its long-term growth strategy. Integrating sustainability into financial operations is increasingly viewed as essential for managing risk, enhancing resilience and maintaining stakeholder trust.

Climate-related disclosures, governance structures and responsible lending practices are becoming core components of financial institutions’ operating models. By strengthening carbon accounting capabilities, Capri Loans aims to align ESG integration with business expansion across its lending segments.

The initiative also reflects growing expectations among investors and regulators that financial institutions demonstrate measurable climate accountability. Transparent emissions data enables stakeholders to evaluate progress toward sustainability objectives and assess exposure to climate-related risks.

For Capri Loans, the move supports positioning within a financial sector undergoing rapid transformation toward sustainability-linked finance.

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Company Profile: Retail-Focused NBFC with National Reach

Capri Global Capital Limited operates as a diversified retail-focused non-banking financial company listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India. The company has built a broad presence across multiple lending segments serving small businesses, households and underserved borrowers.

The company’s key business segments include MSME lending, gold loans, construction finance and housing finance. Through these offerings, Capri Loans provides credit access across urban and semi-urban markets, supporting entrepreneurship, housing development and small-business growth.

As of the latest operational metrics provided by the company, Capri Loans manages assets under management exceeding ₹30,000 crore and serves more than 6.3 lakh customers across India. Its workforce exceeds 13,000 employees operating through a branch network of more than 1,330 locations nationwide. 

This extensive distribution footprint positions Capri Loans as a significant participant in India’s retail and MSME financing ecosystem.

Business Scale and Operational Footprint

Capri Loans’ scale reflects sustained expansion across India’s financial inclusion and retail lending markets. Its branch network enables access to credit across diverse geographies, including regions with limited formal banking penetration.

Serving over 630,000 customers, the company plays a role in financing small enterprises, housing needs and asset-backed lending. Such financing activities, particularly within MSME and construction segments, intersect with sectors facing evolving sustainability and climate considerations.

The company’s workforce of more than 13,000 employees supports operations spanning credit assessment, distribution, customer servicing and portfolio management. This operational base underpins its capacity to integrate new frameworks such as carbon accounting into lending and risk processes.

With assets under management above ₹30,000 crore, Capri Loans represents a mid-to-large NBFC within India’s financial system — a scale at which sustainability governance and disclosure practices are increasingly material.

Climate Accountability Rising in Financial Services Sector

The financial services sector globally is experiencing growing scrutiny regarding its role in enabling or mitigating climate change. While operational emissions from financial institutions are relatively small, financed emissions linked to lending and investment portfolios can be significant.

Consequently, regulators, investors and civil society organisations are placing greater emphasis on portfolio-level emissions measurement and disclosure. Financial institutions are expected not only to reduce their own environmental footprint but also to assess and manage the climate impact of the activities they finance.

Joining PCAF enables Capri Loans to participate in this evolving transparency landscape. By adopting globally recognised carbon accounting standards, the company can align its reporting with international expectations and demonstrate accountability for climate-related financial exposure.

Such alignment is increasingly relevant as sustainable finance frameworks and climate disclosure requirements expand across markets.

Market Alignment and Regulatory Expectations

The partnership with PCAF also positions Capri Loans to respond to rising regulatory and stakeholder expectations around climate risk disclosure within financial institutions. Globally, financial regulators are moving toward requiring climate-related reporting aligned with international standards.

Although disclosure frameworks vary across jurisdictions, the trend toward harmonised climate reporting is clear. Financial institutions are expected to quantify emissions exposure, assess climate risks and integrate sustainability into governance and strategy.

By adopting PCAF methodologies, Capri Loans strengthens preparedness for potential regulatory developments while enhancing transparency for investors and partners evaluating sustainability performance.

The initiative also supports alignment with international sustainable finance trends influencing capital markets and institutional investment flows.

Enhancing Disclosure Quality and Comparability

A key benefit of adopting PCAF standards is improved comparability of climate disclosures across institutions. Standardised methodologies enable emissions data to be evaluated consistently, facilitating benchmarking and risk assessment by stakeholders.

For investors, comparable financed-emissions data supports portfolio analysis and sustainability evaluation. For regulators, consistent reporting improves oversight and systemic risk assessment. For financial institutions, harmonised methodologies reduce uncertainty and support credible disclosure practices.

Capri Loans indicated that leveraging PCAF standards will enhance the reliability and consistency of its climate disclosures. Transparent reporting strengthens credibility and demonstrates alignment with recognised sustainability frameworks.

Improved disclosure also supports internal management by enabling monitoring of emissions exposure across lending segments.

Market Positioning Through Sustainable Finance Alignment

Joining global sustainability initiatives such as PCAF can influence market perception and competitive positioning within financial services. Institutions demonstrating proactive climate accountability may attract investors, partners and stakeholders seeking sustainable finance alignment.

For NBFCs operating in emerging markets, sustainability integration is increasingly relevant as capital providers evaluate ESG performance alongside financial metrics. Transparent climate governance can enhance institutional credibility and access to sustainable funding channels.

Capri Loans’ participation in PCAF therefore contributes to positioning within a financial ecosystem moving toward climate-aligned capital allocation.

Financial Performance Context

Alongside sustainability initiatives, Capri Global Capital continues to operate within dynamic financial markets. Historical stock-return data provided by the company indicates varied performance across time horizons, reflecting broader market conditions and sector dynamics.

Short-term returns have shown declines over periods ranging from one day to one year, while longer-term performance over five years indicates substantial positive growth. Such patterns reflect the cyclical nature of financial markets and evolving investor expectations.

Sustainability initiatives such as carbon accounting integration increasingly intersect with financial performance considerations, as climate risk and ESG factors influence valuation, investment flows and institutional reputation.

Outlook: 

Capri Global Capital’s decision to join the Partnership for Carbon Accounting Financials represents more than a reporting initiative — it reflects a strategic shift toward integrating climate considerations into financial operations, governance and long-term growth.

By adopting internationally recognised methodologies for measuring financed emissions, the company is aligning its lending practices with global sustainability expectations and strengthening its climate risk governance framework. This evolution positions Capri Loans within a growing group of financial institutions recognising that climate accountability is central to responsible finance.

As sustainable finance frameworks expand across markets, financial institutions are increasingly expected to quantify and manage emissions exposure within portfolios. Transparent carbon accounting enables lenders to understand climate risks associated with financed activities and align capital allocation with transition pathways.

For Capri Loans, participation in PCAF supports readiness for emerging disclosure requirements and enhances credibility among stakeholders evaluating sustainability performance. It also signals commitment to India’s transition toward a lower-carbon economy by integrating environmental considerations into financial decision-making.

Looking ahead, the integration of carbon accounting into lending strategy may influence portfolio composition, risk assessment and financing priorities. As climate considerations increasingly shape financial markets, institutions capable of measuring and managing financed emissions are likely to be better positioned to navigate regulatory change, investor expectations and transition risks.

Capri Global Capital’s engagement with PCAF therefore represents an early step in embedding climate accountability within financial operations — a development reflecting the broader transformation of the global financial sector toward sustainability-aligned capital allocation.

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By: Rosemary Wambui

3rd March 2026