The global Environmental, Social, and Governance (ESG) landscape has witnessed a seismic shift, since both the developed and emerging economies began to recognize the need to adopt sustainable practices. As India’s economy continues to grow, so does the importance of ESG in charting in building sustainable businesses and communities of the future.
ESG considerations for sustainable business practices and responsible investing: Recognizing the regulatory push and averting risks
Companies today are aware of the benefits that come with sustainable operations. Carbon Disclosure Project (CDP) recently reported that an ever-increasing number of companies are choosing to disclose data on climate change, deforestation, and water security. This is indicative of a surge in the league of climate advocates and leaders among businesses. Neglecting ESG exposes businesses to risks, including reputational damage, regulatory penalties, and financial losses. Through measures like the mandatory business responsibility and sustainability reporting (BRSR) for listed companies, regulatory bodies, like SEBI in India, are reinforcing the urgency for businesses to prioritize sustainable practices. BRSR, for example, mandates the top 1000 listed companies to report the data on the environment, society, and governance. Such frameworks empower investors, consumers, and other stakeholders to make informed decisions based on reliable ESG data.