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.
Policy makers, national academic institutions and the investment industry could work together to support high-quality academic research into ESG issues.
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Produced in collaboration with UNEP FI and Generation Foundation