REC Limited , a Maharatna public sector Non-Banking Financial Company (NBFC) under India's Ministry of Power, reported a 30% year-on-year growth in its renewable energy loan book to ₹75,347 crore in its Business Responsibility and Sustainability Report (BRSR) for financial year 2025-26. The expansion increased the share of renewable financing in its total portfolio from 10% to 13%, reinforcing the lender’s role in India’s clean energy transition while simultaneously reducing its own operational carbon footprint by 69% across Scope 1 and 2 emissions.

The disclosures, made on a consolidated basis and receiving reasonable assurance from M/s Corporate Professionals, cover all nine principles of the National Guidelines on Responsible Business Conduct (NGRBC). REC Limited recorded a consolidated turnover of ₹59,584 crore and a net worth of ₹85,054 crore during the period. The company is listed on the National Stock Exchange of India Limited and BSE Limited.

Environmental Decarbonisation

REC’s environmental strategy focused on both operational efficiency and green financing. Operational Scope 2 emissions dropped by approximately 76% to 454.32 metric tonnes CO2 equivalent, driven by sourcing 100% green power for its Corporate Headquarters via the Green Tariff facility of DISCOM-DHBVNL. Additionally, the company commissioned 54 kWp of new rooftop solar installations across regional offices in Panchkula, Lucknow, and Vadodara, complementing existing facilities. These initiatives generated 3,167 MWh of clean energy, avoiding 2,248 tonnes of CO2 emissions.

On the financing front, projects funded by REC avoided an estimated 12.2 million tonnes of CO2, with 7.6 million tonnes directly attributed to REC financing using the Partnership for Carbon Accounting Financials (PCAF) methodology. The NBFC also sanctioned two Ultra Super Critical Thermal Power Projects worth ₹22,228.25 crore, aiming to support higher-efficiency power generation.

Governance and Social Responsibility

REC became the first Indian public sector NBFC to secure ISO 31000:2018 accreditation for its Enterprise Risk Management (ERM) framework and upgraded to ISO 27001:2022 for data privacy. The company assessed 100% of private sector borrowers and onboarded vendors for ESG compliance. Starting April 2026, REC will incentivise ESG-compliant renewable borrowers.

Socially, REC allocated ₹338 crore towards Corporate Social Responsibility (CSR) initiatives, spanning 80 projects in healthcare, education, and rural development. The workforce comprised 1,213 employees, with a permanent employee turnover rate of 2.92%. All permanent employees received 100% coverage under health and accident insurance. Female representation on the Board stood at 16.66% (one out of six directors).

Regulatory Compliance

Despite strong ESG performance, the National Stock Exchange and BSE imposed a fine of ₹44,67,480 on REC for non-compliance with Board composition requirements under Listing Regulations due to the non-availability of Independent Directors. REC noted that the appointment of Directors vests with the President of India through the Ministry of Power, and the company has been requesting the requisite appointments.

What the Numbers Show

The divergence between REC’s operational decarbonisation and its lending portfolio highlights a strategic shift toward sustainable finance. While operational emissions fell sharply due to renewable energy adoption, the 30% growth in the green loan book indicates that REC’s primary climate impact is now driven by capital allocation rather than internal operations. This aligns with its role as a National Project Implementing Agency for the PM Surya Ghar: Muft Bijli Yojana, where it facilitated over 3.3 million rooftop solar connections.

REC Limited has appointed Shri Mukul Agarwal as its new Internal Auditor, effective August 1, 2026. The appointment follows the cessation of Shri Sahab Narain from the role due to superannuation on the same date. This transition ensures continuity in the company’s internal audit functions and compliance framework.

The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was submitted to both the National Stock Exchange of India Limited and BSE Limited on August 1, 2026.

Key Details of the Change

Shri Mukul Agarwal currently serves as General Manager (Finance & Accounts) at REC Limited. He is a Member of the Institute of Cost Accountants of India and holds a Bachelor's degree in Commerce.

No relationships between directors were disclosed in connection with this appointment or cessation. The company secretary and compliance officer, Dinesh Garg, signed the intimation on behalf of REC Limited.