India’s Top 500 Companies 2022

INDIA’S TOP 500 COMPANIES 2022 32 ESG in Indian Context In India, the focus on ESG factors has been mainly limited to environmental and governance dimensions. As part of their environmental action plan, companies are actively pursuing initiatives related to decarbonisation and opting for lower-carbon alternatives. Further, the government’s emphasis on renewable energy has led businesses to embrace solar, wind, and other renewable energy resources on a grand scale. In the Union Budget for FY 2023, the government also proposed to issue sovereign green bonds to mobilise resources for green infrastructure. This is a major step in greening India’s public expenditure on climate resilient infrastructure, low-carbon transportation, and new clean technologies. As part of its climate policy agenda, the government of India is implementing a mission-based National Action Plan on Climate Change (NAPCC) which comprises of national missions in the specific areas of solar energy, enhanced energy efficiency, water, agriculture, the Himalayan eco-system, sustainable habitat, green India and strategic knowledge on climate change. India has also progressively continued the decoupling of economic growth from greenhouse gas emissions. This has aided India to achieve a 40% target of power generation capacity from non-fossil fuel in November 2021 as a step towards reducing emission intensity. The ESG-focused regulations have witnessed a fundamental shift in recent years. In 2012, SEBI had introduced the Business Responsibility Reports (BRRs) to widen sustainability reporting practices. Further, in May 2021 SEBI announced that the BRR has been modified to Business Responsibility and Sustainability Reporting (BRSR) with compliance reporting for top 1000 listed companies. The BRSR report will serve as a single comprehensive source of information on non-financial sustainability measures to all the key stakeholders of the business, including shareholders, regulators, investors, and the public at large. Key ESG indicators to be aligned under Business Responsibility and Sustainability Report Environment Social Governance „ Energy and greenhouse gas/ scope emissions „ Solid waste management „ Water consumption and withdrawal „ 3R practices „ Sustainable sourcing „ Extended Producer Responsibility (EPR) „ Life Cycle Assessments (LCAs) „ Employee well-being „ Workers’ health and safety training „ Human rights „ Social impact assessment „ Gender equality, representation of women at the top levels „ CSR activities and details of beneficiaries „ Anti-corruption and anti- bribery policies „ Conflict management process „ Retention policies „ Remuneration policies „ Stakeholder engagement Source: SEBI Dun & Bradstreet