ESG Disclosure and Transparency in India: Growing Investor Sentiment

There has been substantial discussion on ESG (Environmental, Social, and Governance) issues in the last few years and about people participation and collective responsibility of all. There seems to be an investor sentiment generated towards responsible and sustainable investment practices. This paper provides an overview of the ESG landscape, highlighting the increasing investor interest in ESG aspects and on investment decision-making. The paper discusses various different approaches adopted by companies across industries in ESG reporting and analyzes the pre-test and post-test data of ESG disclosure of Indian companies on investors. There is a significant difference between the pretest and posttest scores. The study investigates investor expectations regarding ESG disclosure and transparency. It explores the motivations driving investors' interest in ESG factors and the impact on investment decision-making. The paper highlights the growing demand for standardized, comparable, and material ESG information, as well as the influence of ESG ratings and indices on investment strategies. The findings contribute to the understanding of the current landscape and offer insights for policymakers, companies, and investors aiming to align their practices with sustainable and responsible investment principles. The Securities and Exchange Board of India (SEBI) introduced guidelines in ۲۰۲۲ making it mandatory for the top ۱۰۰ listed companies to disclose their ESG performance in their annual reports. SEBI has also proposed the introduction of a separate ESG reporting framework to enhance transparency and disclosure. Future research could focus on assessing the long-term impact of ESG disclosure and transparency on financial performance and shareholder value. By analyzing the financial performance of companies that adopt robust ESG practices and transparent reporting, researchers can provide insights into the potential financial benefits associated with sustainable and responsible business practices.

کلیدواژه ها:

ESG ، investors’ expectations ، ESG practices in Indian companies ، ESG disclosure