ESG Is An Opportunity For Indian Banks: CRISIL
According to a report released by Coalition Greenwich, a division of CRISIL, Indian banks have a critical opportunity to deepen relationships with corporate clients and make a positive impact by helping large and midsize companies implement environmental, social and governance (ESG) standards and goals. Nearly a third of large Indian corporates and almost two-thirds of middle market companies have yet to establish clear and tangible ESG goals or targets. In industry segments like real estate, only about one in five companies have adopted such ESG measures. Across the board, far fewer companies have adopted ESG metrics in their treasury function relative to similar industries Europe, the U.S. and some parts of Asia.
To date, companies say foreign banks have taken the lead on this issue by being the most active in approaching their clients about ESG. But with domestic banks holding a growing number of key corporate banking relationships, they are in a unique position to provide added value to their growing base of clients by advising them on how best to navigate the often confusing world of ESG data and standards—both in their business operations and in their treasury/finance practices. As observed elsewhere globally, where ESG targets do exist, environmental considerations play a more important role. As ESG standards and norms evolve further and crystallize into more well-defined frameworks, there is an opportunity for banks to partner with firms and help navigate their ESG journey.
