ESG and Indian corporates

Abstract

Integrating sustainability in the strategies of today's businesses is thought to be a way forward in satisfying the expectations of the stakeholders by controlling the ESG (Environmental, social and Governance) implications of the organizations around the world. Addressing the ESG issues have become a key part of the organization's strategy. Now a days while investing in the companies the investors look for two main criteria. One is financial criteria where the analysis is done on profitability, business model, competitiveness etc and another criterion is ESG criteria where they analyse the environmental footprint of the company, which includes the initiatives taken by company in energy savings, reduction in pollutant emissions, wastage reductions and reduction in water consumption. Along with these in social part, they analyse the social condition of the firm, their relations with stakeholders, supplier, and its human resource management. The governance the investors analyse the governance of the organizations based on the factors like transparency and independence.