New Delhi: In this widely interconnected world, ethical practices have gained prominence and global institutions are adopting an ESG strategy. The movement of sustainable investing by inculcating and incorporating environmental, social and governance or ESG factors is fast gaining momentum in India shared by Guest of Honour Dr. Sujit Kumar Bajpayee, Joint Secretary Ministry of Environment, Forest and Climate Change, Government of India in the ASSOCHAM hosted webinar on ‘Environmental, Social & Governance (ESG) Resilience’.
Climate change is a vital issue in ESG and India’s commitment towards this cause is its adherence and adoption of the Paris agreement. India’s commitment towards Paris agreement requires Indians to reduce carbon emissions, shift to renewable and increasing forest cover. By 2030 zero carbon solution could be competitive in sectors representing over 70% global emission. India’s nationally determined contribution under the Paris agreement is 2 degrees compliant. India’s installed capacity of renewable energy has increased by 226 % in the past five years and has taken a target of installed renewable energy capacity to 450 GW by 2030.
India is committed to sustainable growth taking care of a host of environmental and social aspects. Although, remarkable progress has been seen over the years eradication of poverty remains the greatest unfinished task. India is now at the forefront in the call for joint global action to address the ESG trend. It is the need of the hour to collectively take tangible and sustainable steps to put India onto the global ESG map.
To thrive in the new transformative world, we need to embrace ESG strategies as a tool for excellence said by Mr. B L Chandak, Executive Director, R P Sanjiv Goenka Group as ESG is the new mantra for the corporates and the society. In terms of investors, it has been seen that lots of ESG funds have been created from some of the mutual fund industries and some organizations are having separate ESG funds. It the organization is a ESG compliance corporate and the rating is good the banks are giving loans at the lower interest rates.
ESG has moved from margin to the center stage and if we want to work better in this world then once should look for triple line approach, people, planet and profits as a society we have to embrace the business models and it is a pre-requisite for any business to survice.
To demystify the term, ESG really emphasizes the moral and ethical code of conduct to evaluate and set a standard shared by Mr. Anol Singh Narula, Director, JIS Group of Institution. ESG consciousness has to be imbibed from a young age for it to become an automatic influence in the future pattern of the working lives.