ESG - #SectorUpdates
The environmental, social, and governance (ESG) ecosystem in India is in the early stages of its evolution, with the securities regulator making it mandatory for the top 1,000 listed companies to furnish sustainability reports from this financial year. India is also one of the few countries in the world to have a corporate social responsibility (CSR) mandate – companies with a net worth of Rs5 billion (US$61 million) or more (or turnover of Rs10 billion or more, or net profit of Rs50 million or more) are required to spend 2 percent of their net profits on CSR initiatives. This makes India a major market for sustainability solutions and green finance and makes it critical to the evolution of the ESG ecosystem worldwide. A primary motivation for the adoption of ESG has been the presence of a large, global pool of ESG-aligned capital, which stands at upwards of US$120 trillion.