Introduction
With the advent of changes happening around the world, there is a greater requirement for risk assessment on parameters other than the financial indicators for long term returns. Environment, Social and Governance, (hereinafter ‘ESG’) is a framework in the corporate governance, that not only strategizes towards the attainment of sustainability, but also focuses on equitable evaluation of the value generated for all stakeholders, that is investors, consumers, employees and suppliers. Since businesses have greatly profited from economic growth, globalization, increased fossil fuel, it is important to weigh them on the scales of sustainability as they have greatly changed, the lifestyle of the masses and have strengthened the supply chain, manufacturing and infrastructure. Therefore, there is an immense role of corporates in promoting sustainable development, and their actions thereby forms the basis of their ESG rating.
Corporate India has been cautious of the requirements centering ESG, and consequently have taken several initiatives either through government bodies or through companies’ policies. On that backdrop, part II of the article, deals with the inception of the concept of ESG and the areas it aims to cover. Part III of the article would explore the steps taken by Indian Government bodies, the Ministry of Corporate Affairs (hereinafter ‘MCA’) and the Securities and Exchange Board of India (hereinafter ‘SEBI’). Part IV of this article, would cover the performance of Indian Companies on ESG Indexes and would also focus on ESG funds and investments, to bolster its ratings. On the basis of the exhaustive analysis conducted in part IV, part V would present the international scenario of the implementation of ESG policies. Part VI would conclude this article with the gist of observations made.
Origin of the idea of Sustainable Investing
United Nations Global Compact which was established in 2000, has its origin from the voluntary efforts based on the commitments of CEOs of global companies, to support the objectives of UN aimed to achieve universal sustainability. It was the event where the term, ‘ESG’ was coined, for aspects covering sustainable inventing.[1] The companies have to report to and abide by the 10 principles, which were derived from many international documents such as Rio Declaration on International Labour Organization Declaration on Fundamental Principles and Right to work (Labour related issues), Environment and Development (Environment Protection issues), Universal Declaration of Human Rights (Human Rights) and United Nations Convention Against Corruption (Corruption).
In early 2005, then UN Secretary-General, Mr. Kofi Annan launched the United Nations Principles of Responsible Investment (hereinafter ‘UN PRI’).[2] UN PRI was developed by the group of one of the world’s largest institutional investors, and accordingly the principles were launched in April, 2006 at the New York Stock Exchange.[3] These principles are based on the objectives of ESG, which might have an impact on the investment portfolios, these factors were to be treated alongside the investment financial indicators.
The policies aiming to achieve the goals pertaining to sustainability have to abide by the three pillars of ESG. Firstly, ‘E’ which stands for the environment, covers aspects related to ecology, preservation of natural resources, pollution and climate change. Secondly, the ‘S’ stands for Social, covers the aspects of labor practices, consumer interaction and cooperation between manufacturers and suppliers. And lastly, ‘G’ stands for Governance or more specifically Corporate Governance, which shows management of the company in general, keeping the expectations and rights of stake holders in tandem, along with promotion of accountability and transparency.[4]
India and ESG: Efforts made by the Government Regulations.
In the 2022 Conference of Parties (COP 27) India pledged to achieve net zero emissions by 2070.[5] Over the past few years, Indian regulations have mandated corporate bodies to adopt sustainable business practises, indicating an aggressive trend towards decarbonization.
Role of MCA: Setting up of National Voluntary Guidelines
Despite there are many financial institutions (like, HDFC Life Insurance, ICICI Prudential AMC, Axis AMC and many others) being signatories from India to the PRI[6], initiatives towards the ESG model of investing can be seen in the efforts of MCA and SEBI. In the year 2009, MCA issued Corporate Social Responsibility Voluntary Guidelines,[7] which stated that all the business entities, should formulate a CSR policy, to for strategic planning of CSR initiatives, in synchronisation with the goals of the company. The policy should contain elements,[8] such as, ethical functioning, respect for workers’ rights and welfare, care for all stakeholders, respect for human rights respect for the environment and other activities for social and inclusive development.
Companies may tie up with the local authorities, NGOs, civil societies or business associations, for such Activities. For instance, ‘Youth Employment Program’ by Tata Consultancy Services (hereinafter ‘TCS’),[9] aims for providing adequate skill sets and industry exposure to the socially and economically disadvantaged youth. TCS has tie ups with rural colleges and academies, where they propagate the training content by TCS experts.[10]
A year later, the Guidelines Drafting Committee was appointed by the Indian Institute of Corporate Affairs (hereinafter ‘IICA’). After a consideration and feedback of approximately 200 stakeholders, along with industry associations, government agencies and NGOs, initial draft guidelines came into being, which were released by MCA in 2011, as National Voluntary Guidelines on Social Environmental and Economical Responsibilities of Business, 2011. (hereinafter ‘NVGs’) These NVGs have 9 principles.[11]
- Conduction and Governance of Business through ethical, transparent and accountable practices.
- Supply or Production of safe and sustainable goods and services.
- Promotion of well-being of all employees
- Respect of Interests and Responses of all stakeholders especially those who are disadvantaged, marginalised or vulnerable.
- Respect and Promotion of Human Rights
- Initiatives Environment protection.
- Recognition of value of the energy and enterprise of their businesses and encouragement towards innovation.
- An efficient consumer management system
Role of SEBI: Sustainable Reporting mechanism
Post release of NVGs, the MCA reconstituted the drafting committee as the Disclosures Framework Committee, with the aim to develop a disclosure framework, that follows the principles laid down by the NVGs. The disclosure framework came to be known as ‘Annual Business Responsibility Report’ (hereinafter ‘ABRR’).[12] No sooner than MCA released ABRR, SEBI passed a circular on 13 August 2012.[13] That circular was about an annual report, for mandating the performance of the top 100 listed companies by market capitalization at BSE Limited and the National Stock Exchange of India Limited, on ESG parameters along with the 9 principles of NVGs. This annual report, was known as Business Sustainability Report (hereinafter ‘BRR’).[14] This disclosure requirement was akin to general feature of regulation 4 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 [15](hereinafter, “LODR Regulations”) and were required to publish on their website. The number got further extended to the top 500 listed companies in 2015.[16] In 2017, SEBI advised the companies to voluntarily adopt ‘integrated reporting’, keeping the guiding principles of the International Integrated Reporting Council (hereinafter ‘IIRC’) into consideration, which sought to provide information about how an organization would create “value over time”. [17]
Thereafter, it was observed that BRR because of its theoretical nature, lacked exhaustiveness, and consequently led to several issues. For instance, in the study titled ‘Baseline Assessment of Business and Human Rights Situation in India’ conducted by IICA,[18] on the BRRs of top 500 listed companies for the financial year 2018-19, revealed that despite the completeness of information, the clarity and accuracy was dubious. Furthermore, this IICA study [19]suggested that SEBI- BRR disclosures need to be more comprehensive, so as to minimize the variance observed in the disclosures made across the different principles and to seek specific quantitative data to enable comparability. Similarly, another study conducted by KPMG on Business Sustainability Reporting,[20] pointed out that only 57 per cent of the companies were able to provide links to view the policies online, even though three out of five companies have policies adhering to all nine principles. [21]
Present Scenario with respect to Sustainable Reporting
In March 2019, MCA has revised NVGs and updated it to form National Guidelines on Responsible Business Conduct, 2018 (hereinafter ‘NGRBC’). These aimed to promote the all- round development in line of Sustainable Development Goals (hereinafter ‘SDGs’), along with the core principles enshrined in NVGs.[22] Subsequently, MCA released a report of the Committee on Business Responsibility Reporting,[23] amidst COVID-19 pandemic in 2020. The committee proposed to set up an annual report, which better reflected the guiding principles of NGRBCs, this report was christened as ‘Business Responsibility and Sustainability Report’ (hereinafter ‘BRSR’),[24] thereby leading to an amendment to regulation 34 (2) (f) of LODR Regulations. [25]
The annual BRSR report will be required from the top 1000 listed companies by market capitalisation, followed by the respective consultation with all the stakeholders by SEBI.[26] For instance, while interpreting Section 166(2) of the Companies Act, 2013,[27] Calcutta High Court held that “A director of a company shall act in good faith in order to promote the objects of the company for the benefit of its members as a whole, and in the best interests of the company, its employees, the shareholders, the community and for the protection of environment.”[28]
The MCA may extend the reporting requirement to unlisted companies as well, that exceed certain turnover or paid-up capital threshold. Furthermore, unlisted companies that have turnover below the threshold, may adopt the lite version of the format, on the voluntary basis.[29]
BRSR is structured into three sections, which are founded on the three pillars of ESG. [30] Section A deals with the general disclosures of the company i.e., its location, products and services, number of the employees and CSR initiatives. Section B aims to check whether BRSR norms align itself to NGRBCs, while presenting an outlook on the management process of a company, pertaining to governance, leadership and stakeholder management. Section C also checks the compliance to NGRBCs, by covering its every aspect in detail in the form of questionnaire and also has two categories, namely Essential Indicators, which are mandatory in nature and Leadership Indicators, which are voluntary in nature. [31]As compared to BRR, BRSR has more exhaustive methodology, comprising 120 reported data points across 3 sections.[32] The BRSR will be voluntarily applicable on the top 1000 companies for FY 2021-22, wherein the same companies would have to abide by the norms compulsorily for FY 2022-23.[33]
Performance of Corporate India vis-à-vis ESG parameters
The rating on the basis of ESG practices, has become an important phenomenon in the investor community, as over the course of time it has become a crucial aspect to run a business. Presently, there are many private and public-private entities, offering rating and rankings based on the performance on ESG indicators.
Performance of India Inc. in ESG Indexes
Although there is not a standardised mechanism for ESG rating, there are many data sources and analytical approaches, which weigh the sustainability parameters based on potential value, client interest etc.[34] Dow Jones Sustainability Index (hereinafter ‘DJSI’) was the first global sustainability benchmark launched in 1999.[35] In 2019, twelve Indian Companies including Godrej Consumer Products and Havells India, were included in the DJSI. The reason for inclusion of these companies were due the non- presence of any radioactive components (for Havells) and a significant increase in the renewable energy portfolio and, reduced greenhouse emissions and water consumption (for Godrej). UltraTech has been ranked amongst the top 10 companies internationally, in the “Construction Material” category of DJSI, for integrating low carbon strategy in its business roadmap, so as to fulfil the climate change goal (SDG 13).[36]
DJSI is not the sole indicator, there are many indexes like, Bloomberg ESG Data Service, Thomson Reuters ESG Research Data etc., to determine the performance of the company.[37] Since ESG is continuously evolving, screening data and sustainability themed reporting will not fulfil the actual requirements for the investors, stakeholders and the general public. Therefore, it’s the need of the hour to have a standard baseline or regulations related to ESG.
ESG Investments as Green Bonds
Seeing the consistent efforts towards reporting of companies, based on sustainable and responsible conduct, the need of having ESG debt securities was felt by India. This was evident through Consultation Paper released on draft International Financial Service Centres Authority (Issuance and Listing of Securities) Regulations, where emphasis was laid on ESG debt securities, and its framework.[38] The credit definitely goes to Green Bond for kickstarting the process of financing towards Green Projects which targets renewables, bioenergy, low carbon transport and so on. World Bank, private companies, and national and local government institutions, generally issue these bonds. SEBI vide its circular in May 2017, has issued guidelines for the listing of Green Debt Securities in India for Green bond issuance. Since these guidelines follows international principles, SEBI has brought India closer to attain the target set in Intended Nationally Determined Contribution.[39] The first green bonds of India, issued by. Ghaziabad Municipal Corporation was listed on the Bombay Stock Exchange. These bonds raised INR 150 crores.[40] Subsequently, JSW Hydro Energy Limited has also raised USD 707 million overseas, after issuing green bonds which are currently listed in Singaporean Stock Exchange.[41]
ESG Investments in Mutual Funds
The bulletin report [42]released by SEBI in March, 2021, shows the increment of around INR 2100 crore in investment in mutual funds in FY 2020-21 and further INR 3800 crore in FY 2020-21. Mutual Funds Industry of India, have been rapidly growing with sustainable mindset, as almost 25% of institutional investors are following ESG policies. As per a prominent ESG rating agency named Morning Star, Mutual Funds fare well on risk management and returns. Though, India in comparison to the global economy, has less ESG based funds, it is expected that with recent disclosure requirements by SEBI, progress will surely happen.[43] Additionally, Mutual funds companies are required by SEBI to cast votes on resolutions proposed by corporations where they have investments.[44] Priorly, on 31 August, 2021 all Mutual Funds and Asset Management Companies were required by SEBI to disclose the information pertaining risk and performance of mutual fund schemes.[45] This indeed paves a way for sustainable investing. On January, 2023 SEBI released a circular [46] to establish a framework for disclosures by the Fund Management Entities for ESG Schemes.
ESG investment in Private Equity and Venture Capital funds
Recently, Avishkaar Group announced the launch of USD 250 million ESG first fund with the collaboration of German investment and Development Bank, KfW.[47] This fund is aimed to bolster ESG practises of mid-cap businesses in Asia and Africa, and offer them growth capital. Mostly Private Equity (PE) funds and Venture Capital (VC) funds, have witnessed the mushrooming of ESG funds in India, in the past few years. ESG funds shortlists companies that perform well on the ESG parameters. Thereafter, the financial viability of the products and the profit yield estimated, prior to the investment. According to the report given by Bain & Co., assets under management by ESG-focussed PE funds in India more than doubled to $650 million in 2021, these PE funds are estimated to grow 90% in the next five years.[48] An analytics firm named Entrackr has reported that, in start-ups six out of top 25 early-stage deals were pertaining to environment, in the month of January- June, 2022.[49] Although continuous investments have been made to promote effective waste management, pollution control and conservation of natural resources, the pace of investments promoting the causes of social and corporate governance factors, is sluggish.
Varied efforts for inclusion of ESG
Large companies are also moving forward to adopt ESG practices. For instance, recently JSW Cement signed a sustainability linked loan of INR 400 crore, with MUFG Bank India. The said funding (being first of its kind) will help the company to achieve its goal of 25 MTPA with increased focus on sustainability.[50] Tata Sons, a group which was known was known for the utilization of traditionally used conventional energy have set up Tata sustainability group in 2014. Furthermore, Tata Sons has lived up to the ideals of sustainability, this was observed in the recent vision of the chairman, Mr. N. Chandrasekaran to push -this platform for better ESG ratings.[51]
Present Scenario
The recent findings of Hindenburg Research Report[52] which also criticizes Adani Group, for ignoring the concerns of local communities and violating environmental regulations. The report already caused a decrement to the stock price of Adani Group, and also sparked a discussion for increased transparency and accountability. As a consequence, Adani Enterprises (a flagship company of Adani Group) will be removed from DJSI, thereby making the shares less appealing to ESG conscious investors.[53]
The Impact of ESG in Investment decisions and policies: International scenario
For global trade and business, adopting of the ESG mechanisms is a path for the attainment of SDGs. As per the data provided by the World Business Council for Sustainable Development (hereinafter ‘WBCSD’), it is very important for the companies to adhere to SDGs as experts have estimated that it could generate $12 trillion a year in opportunities and create 380 million jobs.[54] According to Mr. Sambitosh Mohapatra, ESG Platform Leader (PwC India) the phenomenon of ESG in India, is at a nascent stage. In India the share of ESG linked bonds is 0.5 percent while in China the share is 25 percent.[55] Globally, ESG principles are becoming in vogue for the investors irrespective of its applications in the form of sovereign wealth funds, private equity funds, pension funds etc. For instance, Kohlberg Kravis Roberts (hereinafter ‘KKR’) became a signatory to the UN PRI in 2009. KKR since then have contributed in formulating the guidelines for sustainable and responsible investing, being a member of the American Investment Council.[56] In the year 2013, KKR began communicating to its employees via its own Private Equity ESG Policy, this step was aimed to amalgamate the idea of ‘smart businesses’[57] and thoughtful management of ESG requirements.
Some investors consider abiding ESG principles, as their responsibility and have thereby integrated the principles with their Board’s fiduciary duties.[58] This provides a method of risk assessment by keeping sustainable development into consideration. The afore-mentioned instances show that firstly the investors will not be too passive to consider investing beyond the financial indicators and secondly, investors have taken a step further by integrating the ESG factors in their investment decisions and risk analysis and also making it a part of their fiduciary duties. In a simpler way, if a company does not comply to the ESG issues, then for the investors it will become less desirable, as it will cast a doubt on the system and transparency of the company.[59]
Amongst the big Tech companies, sustainability is considered synonymous to climate change. Google aims to achieve net zero carbon emissions, across all domains till 2030.[60] Moreover, Alphabet has also invested USD 5.75 billion in sustainability bonds, which gives an impetus to this goal.[61] Apple is also striving hard to become carbon -neutral in the supply chain and production by 2030.[62] Although, emphasising on climate change is a crucial aspect ESG policies, this issue has its place as a colour in a pallet of ESG parameters. ESG is a broad phenomenon where policies should contain social measures and accountability in corporate governance.
Conclusion and suggestions
Adoptions of ESG policies has been trending amongst the companies, however, most of such policies are centred towards environment, which cumulatively leads to ‘Green washing’. This happens either because of the inconsistency in information supplied to investors or unavailability of ESG compliance disclosure from the reach of investor.[63] Interestingly, all the companies are in a fierce competition to lure the investors by only attracting their focus on ‘E’ and, by paying less emphasis on the importance of ‘S’ and ‘G’. In the absence of any standardized or uniform reporting and lack of regulatory guidelines, investors would continue to face deceitful practices. In order to safeguard investor interests and stop ESG malpractice, therefore, it is crucial that regulators establish adequate benchmarks. The securities market regulators in all jurisdictions are powerful bodies with enormous responsibilities. There need to be punishment in the form of monetary and penal nature, like BNY Mellon Case of USA[64], where the company deceitfully cheated the investors and got fined. Therefore, the corporate would have come forward to disclose the risk analysis to investors before taking their investments and sustainability must prevail over profit earning. Adopting ESG compliance can make business more reliable, sustainable and profitable and in turn would make the economy resilient in the long run.
[1] Reporting, UN Global Compact, https://www.unglobalcompact.org/participation/report.
[2] UN Press Releases, Secretary-General Launches ‘Principles For Responsible Investment’ Backed By World’s Largest Investors (April 27th, 2006) https://press.un.org/en/2006/sg2111.doc.html. [3] Id.
[4] Riya Gulati, Corporate Governance and Sustainability, CPJ Law Journal, 164 (9th edn, 2019).
[5] Urmi Goswami, India releases long-term strategy to reach net zero goal, Economic Times (November 15th, 2022) https://economictimes.indiatimes.com/news/india/india-releases-long-term-strategy-to-reach-net-zero-goal/articleshow/95521367.cms.
[6] Ishwari Chavan, What are UN-PRIs, and can they benefit Indian financial institutions? Economic Times BFSI News (May 19th, 2022) https://bfsi.economictimes.indiatimes.com/news/industry/what-is-un-pri-and-will-it-benefit-indian-financial-institutions/91422393.
[7] Ministry of Corporate Affairs, Corporate Social Responsibility Voluntary Guidelines, 2009 https://www.mca.gov.in/Ministry/latestnews/CSR_Voluntary_Guidelines_24dec2009.pdf.
[8] CS Rupanjita De, Corporate Social Responsibility: A Practical Guide, Bloomsbury Publications (3rd edn, December 2020).
[9] Youth Employement Program : Upskilling the next generation, Tata Consultancy Services, https://www.tcs.com/who-we-are/corporate-social-responsibility/initiatives/youth-employment-program-enhance-employability.
[10] Id.
[11] Ministry of Corporate Affairs, National Voluntary Guidelines on Social Environmental and Economical Responsibilities of Business, 2011. https://www.mca.gov.in/Ministry/latestnews/National_Voluntary_Guidelines_2011_12jul2011.pdf.
[12] Ministry of Corporate Affairs, Draft Annual Business Sustainability Report, https://www.mca.gov.in/Ministry/pdf/Draft_Disclosure_Framework_Committee_Report.pdf.
[13] Circular, Business Responsibility Reports, SEBI, CIR/CFD/DIL/8/2012 (August 13th, 2012).
[14] Id. [15] Regulation 4, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
[16] Circular, Format for Business Responsibility Reports, SEBI, CIR/CFD/CMD/10/2015 (November 4th, 2015).
[17] Circular, Integrated Reporting by Listed Entities, SEBI, SEBI/ HO/ CMD/ CIR/ P/ 2017/ 10 (November 4th 2015).
[18] G Dadhich and D Mishra, Baseline Assessment of Business and Human Rights Situation in India, Indian Institute of Corporate Affairs, under the aegis of the Ministry of Corporate Affairs. (2019).
[19] Id.
[20] Business Responsibility Reporting, KPMG (2017) https://assets.kpmg/content/dam/kpmg/in/pdf/2017/07/Business-Responsibility-Reporting.pdf.
[21] Supra note 8 at 4.
[22] Ministry of Corporate Affairs, National Guidelines on Responsible Business Conduct, 2018 https://www.mca.gov.in/Ministry/pdf/NationalGuildeline_15032019.pdf.
[23] Ministry of Corporate Affairs, Report on Business Responsibility Reporting, 2020 https://www.mca.gov.in/Ministry/pdf/BRR_11082020.pdf.
[24] Securities And Exchange Board of India (Listing Obligations And Disclosure Requirements) (Second Amendment) Regulations, 2021, SEBI/LAD-NRO/GN/2021/22 (May 5th, 2021).
[25] Circular, Business Responsibility and Sustainable Reporting by Listed Entities, SEBI, SEBI/ HO/ CFD/ CMD-2/ CIR/ 2021/ 562 (May 10th 2021).
[26] Id.
[27] Companies Act, No. 18 of 2013, §166 (Ind.).
[28] ITC Limited v. JP Morgan Mutual Fund India, AIR 2018 SC 3108. [29] Id.
[30] Business Responsibility and Sustainability Format, SEBI. https://www.sebi.gov.in/sebi_data/commondocs/may-2021/Business%20responsibility%20and%20sustainability%20reporting%20by%20listed%20entitiesAnnexure1_p.PDF.
[31] Ashima Obhan and Vrinda Patodia, India: SEBI’s ESG Disclosure Requirements: Business Responsibility And Sustainability Reporting, Mondaq, (May 25th, 2022) https://www.mondaq.com/india/securities/1196024/sebis-esg-disclosure-requirements-business-responsibility-and-sustainability-reporting.
[32] Aanchal Kabra, India’s Changing Landscape of ESG Disclosures, IndiaCorpLaw (October 27th, 2022) https://indiacorplaw.in/2022/10/indias-changing-landscape-of-esg-disclosures.html.
[33] Id.
[34] Supra note 27 at 7.
[35] Ajit R Singhvi, Top performing ESG companies and how their stocks are faring, Economic Times (December 24th, 2020) https://m.economictimes.com/markets/stocks/news/top-performing-esg-companies-in-india-how-are-their-stocks-faring/articleshow/79935953.cms.
[36] Id.
[37] Maryam Rostoum, The Environmental, Social, and Governance (ESG) Ratings Industry: How can publicly traded companies improve their overall ESG scores?, PhD diss., Barnard College. (2018).
[38] Supra note 34 at 9.
[39] Circular, Disclosure of risk-o-meter of scheme, benchmark and portfolio detail to the investors, SEBI, SEBI/HO/IMD/ IMD-II DOF3/ P/ CIR/ 2021/ 621. (August 31st, 2021).
[40] Editor, Ghaziabad Municipal Corp lists first green bonds, Economic Times (April 8th, 2021) https://economictimes.indiatimes.com/markets/stocks/news/ghaziabad-municipal-corp-lists-first-green-bonds/articleshow/81974055.cms.
[41] Editor, JSW Hydro Energy raises Rs 5187 crore via green bonds, Financial Express (May 12th, 2021) https://www.financialexpress.com/market/jsw-hydro-energy-raises-rs-5187-crore-via-green-bonds/2250201/.
[42] Amarjeet Singh et.al., SEBI Bulletin, Department of Economic and Policy Analysis, Securities and Exchange Board of India (vol. 19, March 2021) .
[43] Patturaja Murugaboopathy and Gaurav Dogra, India has fewer ESG funds than other top 10 economies, Reuters (August 27th, 2021), https://www.reuters. com/business/sustainable-business/india-has-fewer-esg-funds-than-other-top-10-economies-2021-08-26/.
[44] Supra note 38 at 8.
[45] Supra note 40 at 9.
[46] Circular, Disclosures by Fund Management Entities For Environmental, Social Or Governance (ESG) Schemes, IFSCA, 756/IFSCA/ESG SCHEMES/2022-23 (January 18th, 2023).
[47] Press Trust of India, Aavishkaar Capital, KfW launch $250 million ESG First Fund, Business Standard (January 25th, 2022) https://www.business-standard.com/article/companies/aavishkaar-capital-kfw-launch-250-million-esg-first-fund-122012501574_1.html.
[48] Editor, ESG-focused PE fund allocation more than doubled in 2021; AUM to further expand in five years: Bain & Co report, Economic Times (June 16th, 2022) https://m.economictimes.com/news/company/corporate-trends/esg-focused-pe-fund-allocation-more-than-doubled-in-2021-aum-to-further-expand-in-five-years-bain-co-report/articleshow/92245660.cms.
[49] Supra note 48 at 10.
[50] Editor, JSW Cement raises ₹400 crore sustainability-linked loan from MUFG Bank, The Hindu (October 3rd, 2022) https://www.thehindu.com/business/jsw-cement-raises-400-crore-sustainability-linked-loan-from-mufg-bank/article65966803.ece.
[51] Rajesh Kurup, Tata Sons chief N Chandrasekaran to add ‘sustainability’, ‘speed’ as themes during his second term at the conglomerate, Financial Express (May 12th, 2022) https://www.financialexpress.com/industry/synergy-simplification-key-themes-tata-sons-chief-n-chandrasekaran/2521081/.
[52] Hindenburg Research Report, Adani Group: How the world’s 3rd Richest Man Is Pulling The Largest Con In Corporate History (January 24th, 2023) https://hindenburgresearch.com/adani/.
[53] Index Announcement, Removal of Adani Enterprises from the Dow Jones Suatainability Indices, S&P Dow Jones Indices (February 2nd, 2023). https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20230202-1461140/1461140_djsi-adani-20230202.pdf.
[54] The Reporting Exchange, Insights from the Reporting Exchange, ESG Reporting Trends, (2017) https://docs.wbcsd.org/2018/02/Reporting_ Exchange_Report_ESG_reporting_trends_2017.pdf
[55] Supra note 48 at 10.
[56] Laura Kreutzer, Large Firms Embrace ESG But Will Others Follow?, The Private Equity Analyst (February 1st,2011).
[57] . Id.
[58] Max M. Schanzenbach, and Robert H. Sitkoff, ESG investing: Theory, evidence, and fiduciary principles, Journal of financial planning (Oct, 2020).
[59] Gautam Gandotra, Environment, Social and Governance- An analysis, Taxmann, (No. 183, 2017).
[60] Ruth Porat, Alphabet issues sustainability bonds to support environmental and social initiatives, Google Blog (August 3rd, 2020) https://blog.google/alphabet/alphabet-issues-sustainability-bonds-support-environmental-and-social-initiatives/.
[61] Id.
[62] Diana Olick, Climate Change will disrupt supply chains much more than COVID – here’s how businesses can prepare, CNBC (August 9th, 2021) https://www.cnbc.com/2021/08/19/climate-change-supply-chain-disruptions-how-to-prepare.html.
[63] V. Rishi Kumar, ESG: A pragmatic recipe for India Inc., The Hindu BusinessLine https://www.thehindubusinessline.com/specials/clean-tech/esg-a-pragmatic-recipe-for-india-inc/article65840750.ece.
[64] BNY Mellon Bank v. First Found. Bank, No. G059083 (Cal. Ct. App. Sep. 9, 2021).
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