ESG NORMS
India Inc. leverages ESG push to gain a competitive edge and attract investments: Jatinder Cheema
India Inc. is embracing ESG principles following government initiatives for long-term sustainability. Advocate Jatinder Cheema highlights the need for companies to adapt to new reporting norms. The Indian government's focus on ESG aligns with global trends and promotes sustainable development. Climate policies impact business regulations, emphasizing the shift towards sustainability and renewable energy sources.
India Inc doubles down on getting the gender mix right
Naina Lal Kidwai, chairperson of Rothschild & Co, who is also on the board of directors of Biocon and UPL, said one of the big factors fuelling this change is ESG reporting. Companies, especially the larger ones, are seeking ratings from global firms like Moody’s where one of the questions being asked is around diversity and inclusion. Indian companies also need to disclose Business Responsibility and Sustainability reporting besides adhering to integrated reporting where ESG etc, is being integrated into annual reports.
CSR activity transcends compliance boundaries, companies embrace impact investing: Deloitte
Indian companies are expanding their corporate social responsibility (CSR) initiatives beyond compliance, with a focus on strategic impact investing such as social bonds and pay-for-success models, according to a Deloitte India survey. While interest in innovative models is high, navigating complexities remains a challenge. CSR is increasingly seen as a key driver of corporate strategy, with firms re-evaluating their strategies in response to changing regulations and ESG norms.
Sebi gives nod to ICRA's arm to provide ESG ratings
Capital markets regulator Sebi has given approval to ICRA's subsidiary Pragati Development Consulting Services Ltd (PDCSL) to provide environmental, social, and governance (ESG) ratings.
Banks seek incentives for sustainability-linked loans from RBI and Centre
Banks are urging for incentives, such as relaxed norms on risk-weighted assets (RWA) and cash reserve ratio (CRR), for sustainability-linked loans. These loans tie interest rates to a company's sustainability performance, promoting adherence to environmental, social, and governance (ESG) norms. Discussions with stakeholders, including the RBI, are ongoing, with proposals to include green financing in priority sectors like electric vehicles (EVs) and renewable energy.
Sustainable Development: Where is sustainable finance?
The conflicts raging in Europe and the Middle East have further lowered the appetite in the West for low carbon production and consumption. Slower economic growth is also a factor. The European Union’s imposition of protective levies in form of border adjustment of carbon taxes from 2026 reflects this compulsion. All this is happening in the backdrop of ambitious declarations of commitment to net zero by the mid-century. It makes obvious that in a globalised world, no corporate entity or country wishes to surrender its access to low-cost energy and competitive advantage.
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Insurers may need prior approval from IRDAI to appoint new chief
The Insurance Regulatory and Development Authority of India (IRDAI) is considering measures to enhance governance in the insurance sector. One proposal involves requiring prior approval from IRDAI for the appointment of insurance chairmen, aligning with practices in the banking sector. The regulator is also exploring the establishment of mandatory committees, including an Asset-Liability and Ethics Committee, and a board-approved Environmental, Social, and Governance (ESG) and Climate Risk Framework.
Change in names of four ESG funds
ESG mutual funds invest in the stocks of companies that are environmentally and socially responsible and follow corporate governance.
Carbon emissions, a significant concern: Businesses increasingly acknowledging the necessity of ESG, says Bengal Environment Minister
"We are entering an era where carbon emissions pose a significant concern. Businesses are increasingly acknowledging the imperative of sustainability, under the umbrella term ESG. Under the leadership of our Chief Minister Mamta Banerjee, the West Bengal government envisions an economy that actively contributes to building a sustainable environment, not only focussing on profitability" West Bengal Environment Minister Mohd Ghulam Rabbani said at a summit in Kolkata on Thursday.
Retrofitting Indian office spaces for ESG compliance: A transformative opportunity
Currently, 61% of Grade A office space in India, totalling 432 million sq ft, is certified as Green, showcasing a pronounced inclination toward sustainable features. This trend signals a paradigm shift in favour of green real estate portfolios among developers, occupiers, and investors.
To achieve net zero, companies must learn climate science: Jaideep Prabhu, Judge Business School
In the past, there was some deniability over whether water, air or ecosystems were getting polluted by commercial operations — without adequate measurements, businesses could pass the buck. But today, there is much greater traceability.
NSE, MFs in a spot after Morningstar Sustainalytics' exit
In March 2018, NSE launched two indices - Nifty100 ESG Index and Nifty100 Enhanced ESG Index - to capture the environmental and social governance scores of Nifty 100 companies. The companies on these two indices were assessed annually by the ratings provided by Sustainalytics.
9 reasons why ESG investing is getting popular
ESG is an acronym for Environmental, Social, and Governance (ESG) that socially conscious investors use to select investments. ESG norms provide a more focussed ideology and specific framework that ensures expected returns.
Indian banks assess carbon risk of loan book amid investor, cenbank push
India's largest banks are conducting audits to assess their own and borrowers' carbon footprints as they face increasing pressure from regulators and investors to align their ESG reporting with global standards. India, the world's third-highest greenhouse gas polluter, aims to achieve net-zero emissions by 2070. The country's financial sector lags behind others in reporting on lending-related emissions. About 25%-35% of Indian bank loans are exposed to carbon-intensive sectors.
View: Green and just transition goes beyond ESG
Private investors and financiers need to understand that investing in a cleaner and greener planet cannot be about checking boxes. Climate equity and equality can only come through a radical reimagining of the status quo, in that quality of investments matter as much as quantity.
India to take lead in defining global rating standards for ESG: Sanyal
Sanjeev Sanyal, a Member of the Economic Advisory Council to the Prime Minister, spoke at the Africa Partnership Conference in Mauritius about the need for clear Environmental, Social & Governance (ESG) norms. He emphasized the importance of globally recognized ESG norms and effective monitoring of their implementation. Sanyal also discussed India's economic growth, infrastructure development, and its aim to become the world's 3rd largest economy.
More boards across the world are seeing strategic importance of ESG compliance
The importance of environmental, social, and corporate governance (ESG) reporting is increasing globally, and companies with better ESG ratings have outperformed their peers in the stock market. As regulatory norms emerge in India, companies need to develop their ESG practices and boards must enable sustainable reporting practices.
Need to keep in mind ESG cost math: ITC's Sanjiv Puri
Sanjiv Puri, Chairman and Managing Director of ITC, highlighted the importance of considering cost implications when implementing environmental, social, and governance (ESG) frameworks for small enterprises in India. Puri emphasized the need for economically viable models and solutions to control the costs of ESG compliance for MSMEs, as an inflationary environment could negatively impact growth.
ESG funds continue to see outflow; Rs 520 crore pulled out in June quarter
"While the Indian sustainable fund market is still in its nascent state, we have witnessed a similar trend since COVID-19 with a handful of new fund launches. Since then, there have been no new fund launches in the past 24 months," the report said.
View: May a thousand CSR projects bloom
In 2014, India became the first country to make CSR mandatory, and today, more than 80% companies in India have CSR programmes. This is more than what is reported from Malaysia, Japan, South Korea, Thailand, Singapore and the Philippines, even though they are more prosperous than India.
India taking alternate road to ESG reporting: KPMG global audit head
India's environmental, social, and governance (ESG) disclosure norms are more rigorous than global standards, says KPMG's global head of audit. India's top 150 listed companies must provide "reasonable assurance" on their ESG performance from this financial year, with their auditors to trace disclosures to confirm accuracy. Bradley stated that, unlike other regulators, India adopted this approach with a "higher level of assurance on a limited set of metrics", including greenhouse gas emissions and job creation.
Impact investing: A focus of new generation ultra-rich
Various studies have shown that the new generation is twice as likely to invest basis the underlying companies’ commitment to making a positive impact through corporate policies that involve environmental, social and governance factors. This mindset reflects a broader recognition of the role that wealth can play in addressing pressing global challenges.
Convoluted ratings plague ESG scores: RBI
The practice makes "it tough for the average investor to understand what the aggregate ESG score stands for" the RBI said in its Report on Currency and Finance 2022-23.
Modi adviser says India will push back on West monpoly over ESG aims
“The issue is not so much about the need for some norms, but about who will be monitoring these targets,” Sanjeev Sanyal, a member of Modi’s economic advisory council said in an interview. “The existing credit rating ones already have serious biases and failures. Allowing the emergence of a new bunch of exclusively western agencies to monitor ESG targets is problematic.”
Will revised norms make ESG investing more credible?
Sebi steps designed to remove discrepancies in data reporting by companies.
Greenwashing: How some companies are using sustainability as a marketing gimmick
Brands must realise that the green marketing may help them win quick business but there is a potential risk of the brand being boycotted once the truth tumbles out.
How startups can become more ESG (employees, shareholders and government) ready
These practices, combined with deceleration in valuation, have led to the government stepping up its scrutiny of startups and their functioning. The governance quotient among startups has come under criticism. While GoI is committed to help and promote startups, it also has the role to regulate their conduct in case of malpractices.
The India ESG debate: Responsible innovation versus growth at all costs
"Do you want to embrace the movement proactively and shape it, make it your own with local values and initiatives on board and lead the way? Or do you want to wait until a movement driven by big Western VCs and LPs based on their understanding of the market and value system possibly sweeps you off your feet?"
Blackstone’s Nucleus Office Parks invests over Rs 100 crore in properties’ ESG upgrade
The operating platform houses 20 million sq ft office spaces across its 18 assets in top five property markets of the country including Mumbai, Bangalore, NCR, Chennai and Ahmedabad. Apart from these, the US-based private equity major also owns over 110 million sq ft commercial assets in the country through its joint ventures and alliances with Indian developers.
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