Page 31 - IMDR JOURNAL 22-23

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

new buildings at all of its locations, as well as more EV vehicles and a large-scale data command
centre.
The company ensures that all laws and regulations are followed in the letter. It has also promoted
women's leadership development and career advancement programmes and has had a global impact on
four million lives through improved access to medical treatment for people with disabilities. It has also
implemented vocational training programmes to increase employment opportunities, promote education
through digital skilling and teaching initiatives, and encourage employees to volunteer for a cause that
is important to them.
Going forward, it aims to achieve carbon neutrality by 2030 by using 100% renewable energy for
internal operations, a 30% reduction in scope 1 & 2 emissions, and a 20% reduction in scope 3
emissions by 2025. It also has a target of including 40% of women in the workforce
and 20% in senior management by 2030. "Our strong ESG framework and governance hold us
accountable and ensure that we stay on track in terms of translating our goals into visible impact," says
Paneesh Rao, Mindtree's Advisor of Sustainability

Discussion

There are still significant doubts about what we mean by a sustainable investment. There is still no
globally accepted ESG metric, and there are no independent auditors to ensure that corporations aren't
merely greenwashing their investments. Overall, sustainable finance must progress beyond negative
screening, and much more money must be directed toward really green projects such as sustainable
land use, biodiversity, and renewable energy. So, while there is still a long way to go for sustainable
finance, the groundwork is in place for it to fulfil its full
potential.

Despite the rapid growth of the sustainable finance industry, several issues must be addressed. One of
the most difficult challenges is a lack of standardization. There is no universally accepted definition of
what constitutes a sustainable investment, making it difficult for investors to compare various products.
Another issue is a lack of regulation. Because the sustainable finance industry is currently unregulated,
there is no guarantee that sustainable investments will be beneficial.

Finally, the sustainable finance industry is still in its infancy. The global market for sustainable
investments is estimated to be worth $30 trillion, which represents only a small portion of the global
financial market.

The Financial Conduct Authority (FCA) has also been investigating the influence of climate change
and green finance on financial services, establishing how the effects of climate change are important to
consumer protection and market integrity. The FCA also considered the opportunities for financial
services as a result of the transition to a low-carbon economy, including the opportunity to grow as a
green finance centre, but noted that there are currently no minimum standards or guiding principles for
measuring the performance and impact of green finance products.

Looking at the current climate change sustainable finance is the need of the hour. climate change is making an
impact on the operations of big business. In addition to benefiting the environment and making society more
equitable and inclusive, evidence is mounting that sustainable businesses provide higher returns to investors.
Between 1970 and 2014, a study conducted for asset manager Fidelity tracked the performance of a variety of
ESG investments around the world and discovered that half of them outperformed the market. Only 11%
demonstrated poor performance. According to BlackRock, the world's largest asset management firm, during the

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