ESG : India Inc sustainable future - The Hindu BusinessLine

Environmental, social, and governance (ESG) ratings have become a critical benchmark for businesses globally, including those in India, as corporate responsibility and sustainability are essential for long-term viability. These ratings assess a company s commitment to sustainable practices across environmental, social, and governance dimensions, reflecting its ethical standing and potential for sustainable growth. In India, ESG ratings provide a tool for companies to benchmark themselves against global standards, enhancing sustainability performance through transparency and accountability. The Securities and Exchange Board of India (SEBI) has taken steps to embed ESG principles in corporate India, introducing the Business Responsibility and Sustainability Reporting (BRSR) framework and guidelines for ESG rating providers. Despite the global shift towards ESG, the Indian context presents unique challenges, such as socio-economic conditions and evolving ESG data quality. However, a strong ESG performance can attract investors, diversify the investor base, and raise capital more efficiently, which is crucial in India s capital market. ESG ratings are not just a regulatory requirement but a strategic imperative for Indian businesses. By adopting a localized approach to ESG assessments, Indian companies can navigate the complexities of their operating environment while contributing to the global push for sustainability. Embracing ESG is essential for securing a sustainable and prosperous future for India in the global economy. In conclusion, ESG ratings are increasingly shaping the future of businesses worldwide, with India at the forefront of this movement. The country faces challenges but also has immense opportunities to lead sustainable development and set an example for other emerging markets. As ESG ratings continue to evolve, they will add significant value to the global economy by promoting responsible business practices and fostering long-term sustainability.

Source: thehindubusinessline.com
Published on 2024-09-15