As global markets increasingly reward sustainability, Indian businesses are making rapid strides in adopting ESG (Environmental, Social, and Governance) practices. According to Ramnath Iyer, CEO of ESGDS, this shift isn’t just about compliance anymore—it’s about competitiveness, credibility, and capital.
ESG: From Optional to Essential
In the past, ESG efforts were often seen as voluntary or reputation-driven. Today, they are foundational. As Iyer points out, ESG risk management is now a critical determinant in investor decision-making. Companies that demonstrate robust ESG frameworks are more likely to attract long-term capital, form global partnerships, and meet evolving regulatory expectations.
MSMEs and the ESG Imperative
While large corporations have led the initial wave of ESG adoption, MSMEs are quickly following suit. Iyer notes that ESG frameworks offer smaller businesses a chance to improve operational efficiency, build stakeholder trust, and unlock new markets. Integrating sustainability into core strategies helps MSMEs future-proof their operations and remain competitive within global supply chains.
Regulation Meets Readiness
Regulatory momentum in India—such as SEBI’s ESG disclosure mandates—is accelerating this transformation. Investors and financial institutions are increasingly factoring ESG performance into credit assessments and investment decisions. Ramnath Iyer emphasizes that businesses ahead of this curve will not only avoid compliance risks but will also benefit from enhanced investor trust and stakeholder engagement.
Looking Ahead
The future of Indian business lies at the intersection of growth and responsibility. ESG is no longer a siloed initiative; it’s embedded in boardroom conversations, risk assessments, and business strategies. As Iyer puts it, integrating ESG is about long-term resilience and reputation—critical assets in today’s volatile world.
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