Constructing a Sustainable Tomorrow: ESG Trends Shaping the Business Landscape in India

In the ever-evolving landscape of global business, Environmental, Social, and Governance (ESG) considerations have transcended from mere compliance to becoming a pivotal element in long-term corporate strategies. Here’s a snapshot of how India is embracing this transformative shift and its impact on businesses.

As per the findings outlined in this report, the global ESG and sustainability advisory market is anticipated to reach US$39.3 billion by 2023, with a projected CAGR of 6.3%, surging to US$72.4 billion by 2033. In India, the ESG and sustainability consulting market, valued at USD 255.21 million in 2021, is poised for growth at a CAGR of 7.42% from 2022 to 2030 as mentioned here

In line with global efforts to combat climate change, India, through its commitment in the Paris Agreement, aims to achieve net-zero emissions by 2070. This commitment has necessitated the integration of ESG principles within corporate entities to safeguard the environment, address stakeholder interests, and ensure business sustainability. The COVID-19 pandemic and increased consumer awareness have further accelerated this paradigm shift.

High-emission sectors, notably industry and energy, undergo thorough government scrutiny in India. The Securities and Exchange Board of India (SEBI) enforces ESG disclosures for the top 1,000 listed companies through the Business Responsibility and Sustainability Reporting (BRSR) initiative.
ESG investment regulations aim to allure investors and set a global precedent. A noteworthy trend involves Indian firms, such as Reliance Industries, Tata Consultancy Services, and Sterlite Tech, embracing BRSR for sustainability reporting.

However in India, 27% of businesses are prepared for ESG requirements, while only 15% of suppliers are ready. A notable 49% are aware of ESG reporting regulations. Encouragingly, 68% have formally integrated ESG strategies, and 80% report their efforts through diverse channels like sustainability reports, ESG reports, and integrated reports mentioned here

ESG delivers enduring value by safeguarding profits, people, and the planet in a globally transformative business landscape. Essential for addressing material issues and enhancing resilience, ESG integration goes beyond corporate responsibilities. Tailored to industry specifics, geography, and core values, it aligns with strategy and investor expectations. Companies are increasingly adopting integrated profit-loss statements to measure the broader impact of their operations on various forms of capital.

However, some of the ESG implementation challenges include finding the appropriate ESG framework, measuring and tracking performance, accessing governance data and insights, tracking stakeholder sentiment and organizational reputation, and visualizing and controlling risk mitigation as indicated in this context.

As India navigates its journey toward a sustainable future, the integration of ESG principles is not only a regulatory imperative but a strategic necessity for businesses to thrive in the evolving global landscape.

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