Indian ESG challenges and corporate and collective opportunities

Most, if not all, matters before a board, from corporate purpose, objectives and priorities to corporate activities and their impacts, should now be viewed through an ESG lens. Strategic direction and corporate policies should encompass a widening circle of arenas previously considered as ‘external’, such as the environment. Corporate purpose, vision, values, goals and objectives must be sustainable, aligned and consistent with the strategies, policies and behaviours to achieve them. Activities that damage ecosystems, reduce bio-diversity, deplete scarce natural capital and contribute to global warming are sometimes hidden or tolerated. They may also be described and reported as ‘profitable’. Directors who do not challenge such practices are morally responsible. In time they may become legally liable for consequential harm to the environment and current and future generations. ESG and responsible business is more than scaling back damaging activities, unsustainable operations and negative consequences. ESG is about opportunity and responsible innovation, enterprise and capitalism. It is about creating new options and choices for stakeholders to live and operate more sustainably and in harmony with the natural world