Page 29 - IMDR JOURNAL 22-23

IMDR’s Journal of Management Development and Research 2022-23

Regulatory responses/Changes towards sustainable finance:
RBI
In May 2021, the Reserve Bank of India established a new unit called the "sustainable finance group"
(SFG) within its regulatory department to effectively counter risk and lend regulatory initiatives in the
areas of sustainable finance and climate risk. The SFG works with international standard-setting bodies,
other central banks, financial sector regulators, and the Indian government to coordinate and participate
in sustainable finance and climate change issues. The group would also help develop strategies and
develop a regulatory framework, including appropriate climate-related disclosures, that could be
mandated for banks and other regulated entities in India to promote sustainable practices in addition,
the RBI is preparing a consultative paper on
(i) Governance (ii) strategy (iii) risk management iv) Disclosure

SEBI

The Securities and Exchange Board of India (SEBI) mandated the filing of a Business Responsibility
Report by the top 100 listed companies in India by market capitalization in 2012. In 2015, this was
extended to the top 500 listed companies by market capitalization. The SEBI introduced a new ESG
reporting structure called the Business Responsibility and Sustainability Report on May 10, 2021.
(BRSR). BRSR requires listed entities (top 1000) to provide an overview of the entity's material ESG
risks and opportunities, an approach to mitigating or adapting to the risks, and financial implications.
The goal of BRSR was to make it mandatory for the top 1000 publicly traded companies to report their
sustainability performance to maintain transparency with stakeholders. And On May 6th 2022, SEBI
issued a press release which states that SEBI has constitutes a committee for advising on ESG-related
matters in the securities market. This is how SEBI ensures that companies listed on the stock exchange
adhere to all environmental, social, and governance principles.

INDIAN BUSINESSES FOCUS ON SUSTAINABILITY FINANCE:

INFOSYS:

This IT behemoth not only makes the Crisil ESG rankings for the second year in a row, but it also
makes the Dow Jones Sustainability Index, which evaluates companies' ESG performance globally.
Beginning its climate action journey in 2008, the company will be carbon neutral in 2020, 30 years
ahead of the Paris Agreement's deadline. It aims to reduce absolute Scope 1 and 2 greenhouse gas
emissions by 75% by 2030, and Scope 3 emissions by 30%, as well as recycle 100% of used water and
send no waste to landfill.
The company's social commitments include increasing the number of women in the workforce in the
future. According to Infosys's Head of Green Initiatives, Bose Koorliyil Varghese, "They intend to
have 45% of their workforce comprised of women by 2030. Also, to provide over 10 million people
with digital skills, energise local communities through flexible work options, to empower over 80
million people through tech-for-good programmes, and facilitate best-in-ss employee wellness. Their
governance goals include a diverse and empowered board that is responsible for compliance, integrity,
and transparency." The company is dedicated to setting industry standards for data privacy and
information security according to Varghese, which are directly measurable.

29