The study further shows that Indian investors rely more on home-grown data systems and audited (or assured) corporate disclosures for sustainability analysis. However, compared to global investors, Indian investors are less likely to rely on external data sources and ratings.
Viral Thakkar, Partner and Sustainability & Climate Leader, Deloitte South Asia said, “While the focus on sustainable investment is laudable, lack of access to reliable data is a significant barrier for Indian investors. There is a critical need to improve reporting standards. To build investor confidence and To facilitate informed decision making.
“Organizations should strengthen sustainability governance capabilities, invest in high-quality measurement and reporting systems, and seek third-party assurance for their disclosures. By prioritizing transparency and engagement, companies can align with investor expectations and improve social and environmental outcomes. can contribute to a sustainable future for all.”
Highlighting the growing trend of sustainable investing, the report states that around 78 percent of Indian institutional investors invest up to 30 percent of their funds in finance institutions that aim to achieve specific and measurable ESG objectives. About 1 percent invest more than 60 percent of their funds in organizations that meet specific ESG objectives.
About 41 percent of Indian investors cite regulatory requirements as the top driver for incorporating sustainability factors into investment decisions, followed by improved social and environmental outcomes (36 percent each). This contrasts with global benchmarks, where investors prioritize financial performance and risk diversification.
Increasing awareness of climate change, social issues and corporate governance standards has led to increased pressure on investors from their clients.
About 40 percent of investors feel pressure, with about 15 percent feeling widespread pressure to integrate ESG strategies into their investment decisions due to demand from clients and asset managers. This client-based demand highlights the significant influence of external expectations on incorporating ESG factors into investment strategies.
“Building and maintaining trust with investors is critical for corporations to remain competitive, grow market value and gain access to capital. Trust can be built through actions that demonstrate a high level of competence and positive intent. Our study shows significant differences in ESG. Data Credibility , challenging investors who try to incorporate stability into their decisions.
“To bridge this gap and foster greater trust, organizations must credibly deliver on their sustainability commitments and increase transparency through standardized reporting and robust data verification. By doing so, we can empower Indian investors to make more informed and effective sustainability investments.” which ultimately drives positive social and environmental change,” said Shabana Hakim, Executive Director, Deloitte India.
The survey shows that nearly 80 percent of Indian investors have implemented sustainability policies. 14 percent of them have a policy for more than five years and 58 percent have a policy for more than two years.
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