In the wake of the global pandemic, the landscape of Environmental, Social and Governance (ESG) investing experienced a paradigm shift, with Covid-19 emerging as a catalyst for what many consider to be the as the century’s first “sustainability” crisis. According to an EY report, 90% of international investors now prioritize company’s ESG performance, with 86% corporates’ emphasizing decarbonization in their investment strategies.
In India’s dynamic ESG (Environmental, Social, and Governance) environment, companies are now evaluated not only on their financial gains but also on their commitment to sustainable and responsible behaviors. The Business Responsibility and Sustainability Reporting (BRSR) – mandatory requirement for top 1000 companies listed on stock exchange – has emerged as a guiding framework for enterprises in navigating this transformative path, holding significant importance alongside various global ESG frameworks such as GRI, CDP, ISSB, SASB, and others.
Although India is still in the nascent stages of its ESG voyage, a palpable wave of change is sweeping across the nation. Regulators are taking steps to align sustainability reporting regulations with global best practices, reflecting a growing recognition within the business community of the need to attract investment from abroad, where stringent sustainability standards prevail. But there is still a long way to go.
India’s financial regulatory bodies, including the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), have strengthened the current frameworks overseeing sustainability reporting, rating methodologies, and green finance. Although these efforts contribute to shaping the ESG regulatory environment and encourage sustainable business practices, more consistency and comprehensiveness in applicability and enforcement is required.
The Importance of ESG in India
India’s commitment to achieving net-zero emissions by 2070, as stated in the Paris Agreement, has made the integration of ESG principles imperative for corporate entities. This commitment extends beyond mere financial returns, encouraging businesses to contribute positively to society and the environment. Green energy sources and the adoption of ESG, are capable of boosting corporate growth, enhancing public image, and facilitating capital at lower costs.
ESG at the Core: Jakson Group’s Guiding Light
At Jakson Group, ESG principles form the bedrock of our Corporate Ethos. We recognize our moral obligation to operate in a manner that not only complies with regulations but also generates positive impacts on the environment, society, and stakeholders. Our ethos guides us towards a future where sustainability and ethical decisions seamlessly integrate into every aspect of our operations.
Green Energy: A Cornerstone for Sustainable India
Central to Jakson Group’s commitment is adopting green energy, which is pivotal in India’s transition to a sustainable future. Green energy sources, particularly green energy solar panels & hydrogen economy, are instrumental in reducing carbon footprints and mitigating the adverse effects of climate change. Jakson Group recognizes the importance of leveraging green energy solutions to create a cleaner and more sustainable energy landscape for India.
ESG Implementation in India
Companies in high-emitting sectors, particularly industry and energy, face stringent scrutiny from the Indian government. The SEBI has mandated ESG disclosures for the top 1,000 listed companies under its Business Responsibility and Sustainability Reporting (BRSR) initiative. Moreover, the definition of Corporate Social Responsibility (CSR) mandates that companies with specified financial metrics must spend at least 2% of their net profits on CSR endeavors and disclose their ESG profiles.
Post-COVID, India’s banking and non-banking sectors have shifted their focus to sustainable development. The Reserve Bank of India (RBI) joined the Network for Greening the Financial System (NGFS) to contribute to global green finance and drive the Indian financial sector towards policy formation and climatic risk resilience development. The State Bank of India has formulated ESG-compliant lending policies, urging companies to act more responsibly.
Addressing the Missing Link in ESG Adoption
While ESG commitments stand on three pillars, the ‘S’ is often the missing link between business strategy and regulatory compliance in India.
At Jakson, we actively promote diversity and inclusivity through strategic initiatives. Our Internship and Leadership Development Programs focus on skill enhancement and leadership growth. Inclusive Hiring with Diversity ensures a varied and inclusive workforce. Women’s Leadership Opportunities empower and support female professionals. It is how our Internal Talent Mobility and Career Development initiatives facilitate continuous growth and advancement within the organization.
Jakson Group – Pioneering a Sustainable Future
Evidence-based storytelling of ESG-driven operations through various mediums establishes a company’s authenticity, strengthens stakeholder relationships, improves public perception and enhances risk communication. India, guided by companies like Jakson Group, is on the path to integrating environmental and human health, collaboration and transparency and transformation of various production modalities to realize its pledge of attaining net-zero emissions in the future.
Jakson Group’s proactive approach to ESG principles, mainly its focus on green solar energy, exemplifies India’s transformative journey. Our dedication to responsible business practices and the pioneering adoption of green energy solutions set the stage for a future where sustainability and profitability go hand in hand.
