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ESG Action in Indian Businesses and Their Supply Chain

Influenced by global dialogues and stimulated by the Indian policy makers, the Indian business diaspora has been, for the past few years, increasingly engaging in conversation and action on management and measurement of Environmental, Social and Governance (ESG) parameters. This shift in focus towards non-financial metrics comes amidst an increasing demand from global customers and investors for ESG disclosure along with the launch of the National Voluntary Guidelines for Social, Environmental and Economic Responsibilities of Businesses (NVG-SEE) which is applicable for all Indian businesses. In 2012, the Securities and Exchange Board of India (SEBI) mandated the filing of an annual Business Responsibility Report (BRR), which focuses on ESG performance, for the 100 largest publicly traded firms

This report is the product of a study which spanned three sectors:

  1. Pharmaceuticals and Chemicals,
  2. Automotive and Automotive Ancillary and
  3. Fast Moving Consumer Goods (FMCG): Food/Agriculture/Consumer Products. 

Download the entire report, click here.


Contents of the report

Executive Summary on the Landscape of ESG Action

1. Context 
Objective of the Report
Lens and Audience for this Report

2. Landscape of Prevalence and preparedness for ESG Management and Measurement: Businesses and their Supply Chains
Prevalence and Preparedness for management of ESG issues is high
Prevalence of Public ESG Disclosure is Low 
Disconnect Between Key Roles in Companies on ESG Management/Disclosure

3. Drivers for ESG action: Risks and Opportunities
Perceived Risks
Perceived Opportunities
Drivers Identified behind Creation of ESG Management Systems

4. ESG disclosure: Compliance as a Key Driver
Regulatory Compliance
Customer Compliance
Other Non-Compliance Drivers

5. Investor Perspective on the Value of ESG Data
Drivers for investors to incorporate ESG data in assessment 
Investor Expectations on ESG performance Data
Perception Gap: Investors vs. Businesses

6. Market need for Enhancing uptake of ESG Disclosure and Reporting 
Need to Create Evidence Base 
Simplify Reporting and Disclosure
Assurance and Audit

7. Institutional Landscape for Promoting ESG Management and Disclosure
Enhancing ESG disclosure amongst listed and unlisted businesses in India
Leveraging institutional linkages to promote ESG action and disclosure

8. Road Ahead and Areas for Future Work

Stay engaged

Annexure 1: Landscape of Legislation Incentivizing ESG Disclosure
Annexure 2: Stakeholders engaged in the study


This brief is an outcome of on-going industry engagement efforts by Sustainability Outlook to capture the Emerging Landscape of ESG Action in Indian Businesses and their Supply Chain.

To receive the reports, get engaged or to learn more about the on-going work related to Corporate Sustainability, please email us at mait@sustainabilityoutlook.in (Market Access & Insights Team at Sustainability Outlook)

Category: 
Market Intelligence and Outlook
Document Tag: 
Author: sustainabilityoutlook
Document Tag: Policy Tracker