Cholamandalam Releases Sustainability Report Detailing Financial Inclusion Push and ESG Commitments

Cholamandalam Releases Sustainability Report Detailing Financial Inclusion Push and ESG Commitments​

Cholamandalam Investment and Finance Company Limited released its Business Responsibility and Sustainability Report (BRSR) for the financial year spanning April 1, 2025, to March 31, 2026. The report provides detailed insights into the company's operational footprint, commitment to ESG goals, and performance against various sustainability indicators.

The company affirmed its dedication to fostering a sustainable future by focusing on climate change mitigation, responsible lending, and promoting financial inclusion among underserved communities.

Business Overview and Operational Scale​

Cholamandalam Investment and Finance Company Limited maintains extensive nationwide operations, comprising 1,761 offices across the country. The company serves customers in all 26 states and 7 Union Territories.

The core business activity stands as Financial Services—Lending, accounting for 94.21% of the entity's turnover. The company offers a wide range of financing solutions, including Vehicle Finance (VF), Loan Against Property (LAP), Home Loans, Secured Business and Personal Loans, Small & Medium Enterprise Loans (SME), Consumer and Small Enterprises Loans, and Gold Loans.

The company utilizes its extensive network to reach underserved populations, focusing on financial inclusion for first-time borrowers (FTB) and new-to-credit customers (NTCC).

ESG and Governance Highlights​

The BRSR highlights Financial Inclusion as a key opportunity, reflecting the company's commitment to enabling better lives for its clientele.

Workforce and Employee Welfare​

As of the end of the financial year, Cholamandalam reported 51,327 total employees, comprising 49,494 male and 1,833 female permanent employees (96% and 4%, respectively). The company invested significantly in employee well-being.

Data on operational metrics shows:

• Employee Training: 153 training programs were conducted for employees other than the Board of Directors (BoD) and Key Managerial Personnel (KMP), covering topics like ESG awareness, Business Continuity Plan, Mental Health, and Cyber security, reaching 82% of employees in that category.
• Well-being Spending: The cost incurred on well-being measures for employees and workers stood at 0.46% of total revenue for FY 2025-26, compared to 0.45% in the previous financial year.

Performance against Key Objectives​

The company demonstrated strong performance in its environmental commitment related to electric vehicles (EV) loans. EV disbursement reached ₹628.75 crores in FY 2025-26, surpassing the ₹525.46 crores disbursed in FY 2024-25 against a target of 5% year-on-year improvement.

Stakeholder Grievance Management​

The company maintains dedicated processes for grievances regarding customers and employees. For consumers, 21,036 complaints were filed during FY 2025-26, with 182 pending resolution at the end of the year. In contrast, FY 2024-25 saw 5,113 complaints filed, with 266 still unresolved.

Environmental and Resource Management​

The report details Cholamandalam's efforts towards environmental responsibility:

• Energy Consumption: Total energy consumed was reported as 1,22,927.03 in FY 2025-26 and 90,087.30 in FY 2024-25. The company is pursuing Green building status for its corporate office.
• Water Consumption: Total water consumption amounted to 6,88,037.2 kilolitres (KL) in FY 2025-26, up from 5,96,223 KL in FY 2024-25. The resulting water intensity was 0.000002188 per rupee of turnover.
• Waste Management: E-waste generated totaled 10.06 metric tonnes (MT) in FY 2025-26, compared to 7.12 MT in FY 2024-25. The company ensured that all e-waste was recycled through an authorized recycler at the end of its useful life.
• GHG Emissions: Total Scope 1 and Scope 2 emissions per rupee of turnover were reported as zero for both FY 2025-26 and FY 2024-25, with a physical output intensity of 0.38 for the current year.

Corporate Social Responsibility (CSR) Initiatives​

The company committed to community upliftment through various CSR projects, which benefit marginalized groups across different states in India. Key areas of focus include health and education, rural development, and environmental sustainability.

The report highlights several focused initiatives:

• Healthcare: Projects such as "Comprehensive respiratory health care program for children - Phase II" benefited 100% vulnerable and marginalized recipients. Total benefit recipients across various medical projects (including healthcare and diagnostic infrastructure) reached over one million.
• Rural Development: The company dedicated resources to initiatives like the "Integrated Rural Sanitation & Village Development Program," benefiting 240 persons, ensuring a 100% rate of beneficiaries from vulnerable groups.

Corporate Governance and Industry Engagement​

The company actively manages risks associated with Data Privacy and Cyber Security, implementing ISO 27001:2022 certification for its IT infrastructure. The organization maintains an unwavering commitment to ethical business conduct, adhering to a 'Code of Conduct and Ethics Policy' that covers conflict of interest.

Cholamandalam holds affiliations with four key industry associations, including the Confederation of Indian Industry and Finance Industry Development Council (FIDC).

CHOLAFIN Stock Price Movement​

Today, the stock of Cholamandalam Investment and Finance Company Limited rallied, closing at ₹1850.5 after posting a strong gain of 3.44%. The surge pushed equity to reach its 52-week high, with trading volume reported at 3.06 million shares.