The ESG rating conundrum

India must put forth its own regulatory framework to accredit ESG rating providers as universal consensus is a distant dream

Globally, ESG or environmental, social and governance investments have emerged as a subject of great interest and significance in recent years. It is no longer just a fad or a buzz word. Increasingly, corporates are adopting higher ESG norms, and investors are preferring such investments. There is a growing realisation that focussing on ESG not only results in public good but also makes business sense. It is beneficial for both —the shareholders and all other stakeholders.

There are no universally recognised or accepted ESG reporting standards and frameworks yet; though a number of international bodies are grappling with the idea. Globally,