Decoding ESG action and reporting for India Inc.
The increase of responsible investment in the past couple of years and mandatory reporting on ESG (environmental, social, governance) information by the larger corporations in major developed and developing economies including India underscores the growing importance of corporate social responsibility (CSR) and sustainability management of business. In recognition of the significant impact of ESG factors on a company’s financial performance, multinationals organisations transparently show the risks, opportunities, goals, and performances in economic, social, and environmental areas through various channels including sustainability report.
In an important development, Securities and Exchange Board of India’s board has approved to expand the scope of the business responsibility report to include business responsibility and sustainability.
“The new reporting requirements are expected to bring in greater transparency through disclosure of material ESG-related information to enable market participants to identify and assess sustainability-related risks and opportunities,” Sebi said in a statement.
