What is Environmental and Social Due Diligence (ESDD)?

ESDD is the assessment of environmental and social risks associated with a lending or investment decision. Indian banks and NBFCs conduct ESDD under RBI ESG guidelines, IFC Performance Standards, and Equator Principles.

Does LenderESDD cover Indian state-level risks?

Yes. LenderESDD includes 28 state-level environmental and social risk factors covering water stress, air quality, forest cover, industrial pollution, labour conditions, and social vulnerability for all Indian states.

Is ESDD mandatory for Indian banks?

RBI has issued guidelines on ESG risk assessment for banks and NBFCs. While not yet mandatory for all loans, ESDD is required for project finance above certain thresholds and is a best practice for all commercial lending.

Free Tool

LenderESDD

Environmental and social due diligence for lenders. Structure your E&S assessment against IFC Performance Standards and Equator Principles. Generate a complete ESAP with risk categorisation, timelines, and remediation costs.

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Environmental and Social Due Diligence for Indian Lenders

RBI is strengthening ESG requirements for banks and NBFCs. LenderESDD covers IFC PS1-PS8, Equator Principles, RBI ESG guidelines, and SEBI green bond requirements with 28 state-level environmental and social risk factors.

State-Level Risk Data

Covers water stress (CGWB), air quality (CPCB CEPI), forest cover (FSI), industrial pollution, labour standards, displacement history, and conflict sensitivity for all Indian states — enabling geographically specific E&S risk assessment for project finance.