IVCA along with Khaitan & Co. has just concluded an important and thought provoking seminar on : How Can Businesses Expand, Sustain and Grow with Environment, Social and Governance principles (ESG). The esteemed panelist reviewed and debated how ESG have now become a core and intrinsic part of corporate structures and investment strategies. They have gone from being ‘good to have’ to ‘must have’. The panelist pointed out that while investors would take varied approaches – they are now integrating environmental, social and governance (ESG) integrating ESG factors into their investment decisions. These decisions are of course subject to quality of information and data points available to institutional investors conduct robust ESG analysis.
These insights can be of practical assistance to institutional investors looking to develop appropriate ESG governance structures and methods. Interestingly, in 2018, survey conducted by Natixis Investment Managers, nearly two-thirds of institutional investors believe that the integration of ESG factors will become standard in the industry within the next five years (Natixis Investment Managers, 2019). Further International Organization of Securities Commissions (IOSCO), the securities and exchanges regulator, published a statement in January 20198 , setting out the importance of issuers considering the inclusion of ESG matters, when disclosing information to investors’ decisions. IOSCO has also established a sustainable finance network and organized its first meeting in June 2019 to exchange ideas between securities regulators, standard-setting bodies and the market players on sustainable finance. Here is a more recent Yes Bank Report taking ESG Scenario In India. As recently as February, 2021, SEBI has stated that it will be issuing guidelines related to the environmental, social and corporate governance space.