Indian Businesses More Focused Than Global Peers On ESG Reporting, Compliance: Study

The latest study by DBS Bank study with the FT Longitude has revealed that Indian businesses are more focused than their global peers on environmental, social and governance (ESG) reporting and compliance. Among the markets surveyed, India had the highest number of executives (68 per cent) who believe that treasury and finance teams will be integral to a new era of globalisation.

The study titled ‘Pivotal: How treasury and finance enable a new era of globalisation' revealed that about 72 per cent of Indian businesses will prioritise diversification in the next two years.

Talking about plans of Indian businesses over the next two years, the report added that about 78 per cent will give precedence to securing new skills and talent, 76 per cent will focus on improving productivity and operational performance and 72 per cent are committed to business diversification through innovation, financing, and exploring new market channels.

When examining insights from the subcontinent, it was seen that Indian businesses are more likely than their regional peers to be engaged in ESG reporting and compliance (65% in India, compared with 62 per cent in Singapore, 53 per cent in Hong Kong and 41 per cent in China). This aligns with the increase in stringency and rigour required from mandatory reporting and disclosure norms in the country, it added.

Another interesting aspect that emerged was that one of the biggest considerations for Indian companies deciding where to locate their treasury and finance functions was the presence of a diverse talent pool, with 84 per cent of organisations citing it as a critical factor, compared to a global average of 70 per cent. A stable political environment and robust financial ecosystem also rank high on this list of location influencers, each factor cited by 72 per cent of businesses in India.

Rajat Verma, Managing Director and Head of Institutional Banking, DBS Bank India said, “Amidst global headwinds, there are emerging opportunities for companies to benefit from the shift towards Asia by harnessing the power of innovation and data-driven decision making."

A significant finding is that 42 per cent of Indian executives (compared to the global average of 27 per cent) perceive the emergence of new market entrants as a key barrier, hampering business growth. Access to capital (40 per cent) and growing regionalisation and nationalism, (36 per cent), are also fundamental concerns. Despite these challenges, Indian enterprises are actively pursuing global expansion, with treasury and finance departments playing an increasingly central role. 

These functions are driving decisions, with 92 per cent of treasury and finance teams engaged in corporate strategy and 88 per cent of these teams in Indian businesses closely involved in procurement and supply chain management, vital functions in the current trade landscape.