Options for action in India

Explore national regulatory clarification

  • The Indian government could investigate clarifying the Pension Fund Regulatory and Development Authority Act 2013 to encourage investors to take account of ESG issues, promote high standards in investee companies and report on how they are doing so.

Boost domestic demand

  • The National Pension System Trust could require all pension fund managers charged with managing National Pension System funds to take account of ESG issues, encourage high standards in investee companies and report on how they are doing so.

Introduce a stewardship code and monitor stewardship outcomes

  • The Securities and Exchange Board of India (SEBI) and the Pension Fund Regulatory and Development Authority (PFRDA) could jointly develop a code setting out institutional investors’ stewardship responsibilities.

Enhance corporate disclosure

  • SEBI could improve its oversight of the disclosures being provided by the top-500 listed companies against the nine pillars of India’s National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business. Stock exchanges should engage investors and listed companies to enhance the quality of corporate disclosure and expand the reporting scope beyond regulatory requirements.

Support research

  • Policy makers, national academic institutions and the investment industry could work together to support high-quality academic research into ESG issues.

Produced in collaboration with UNEP FI and Generation Foundation

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Investor obligations and duties in six Asian markets