ESG Champions of India 2024

6 | ESG Champions of India 2024 [ ESG AND ITS RELEVANCE IN THE CURRENT SCENARIO ] A mid growing global complexities and challenges, sustainable and inclusive growth are taking centre stage. Amid disruptive pressures and even as the Asian sub-continent is fast emerging as a prominent player across a myriad of fields, the principles of Environmental, Social and Governance (ESG) are assuming greater importance. Increasingly, policymakers, businesses and investors alike are realizing that growth needs to be sustainable as well as more inclusive and equitable for everyone. The most pressing and prominent reason for the increased focus on ESG is climate change and environmental concerns. Economic activities that predominantly entail or lead to deforestation, burning of fossil fuels and greenhouse gas emissions are under the scanner. Businesses and regulators are under increased pressure to assess and curtail the environmental impact of human activities and there is an urgent need to divert investments towards clean energy and low- carbon solutions. Additionally, the world is also becoming more concerned about social issues such as inclusivity, diversity, labour laws, human rights. A need is being felt to have more parity, both economical as well as in terms of social justice and inclusivity, and to bridge the gap between the rich and the poor, providing the deprived the access to basic rights and services while gradually uplifting them on the social and economic growth indices. ESG parameters allows investors to fund companies that prioritize the positive social impact of their activities in terms of labour rights and engagement with local communities. ESG is also critical from the standpoint of ensuring good governance, sustainable and equitable growth, and preventing corruption and other forms of abuse of power, that invariably affect the financial performance and reputation of businesses. Dun & Bradstreet