"India to play the role of global growth engine, says PM Narendra Modi. Addressing global investors, PM assured that India has systems and companies which have a high environmental, social and governance (ESG) score"
The COVID-19 pandemic has reinforced the motto of ‘people, planet and profit’ with investors putting their bets on companies with high ESG scores. It has been instrumental in reinforcing the importance of ESG framework as a key approach to long-term business resilience, says the EY report ‘Can ESG help future proof your business'. COVID has ensured there is greater focus on ESG - US data shows a record $27.7 billion flew into ESG ETFs in 2020, more than three times the previous year. Globally, trillions are flowing into sustainable funds, with ESG funds surpassing $1 trillion in assets, in 2020.
Indian companies are also doing well when it comes to environmental, social and governance (ESG) disclosures. In India the market regulator is pushing for more stringent ESG-related disclosures, amid rising investor interest. A series of efforts have been taken by the Indian Government, one of which requires spend of 2% of average net profits by India Inc. (certain eligible companies) towards corporate social responsibility (CSR) activities in eligible areas.Read More
The upcoming webinar “ESG as a value creator for India Inc” will feature a panel of renowned business leaders from different sectors to explore how companies can identify and build the right value for their business with ESG as tool.
ESG and CSR will act as potential tools to engage into meaningful conversations with the stakeholders and create value.
The number of Indian signatories to United Nations—Principles of Responsible Investment tripled in 2020, while the number of active ESG mutual funds now total eight. Source – EY report.
The growth of responsible investments is driven by several factors; from regulators, impacts on risk and return, and client demand.