ESG and the Non-Profit Sector in India

Introduction

Environment, Social, Governance (ESG) is a set of standards which companies must consider while doing their business i.e., to make disclosures about their impact on the environment and society. Recently, India has stepped up its sustainability reporting guidelines across the public and private sectors. With the clear evidence of climate change and growing public concerns about ethical and sustainable business conduct, the stress on mandatory ESG compliance has been accepted readily by corporates and consumers alike.

The National Guidelines on Responsible Business Conduct (NGRBC), 2009, and the 2011 National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Companies have evolved to improve transparency and accountability that guide business responsibility reporting. This aspect of non-financial reporting has been a long-term agenda of the Securities and Exchange Board of India (SEBI), the regulatory body for India’s securities and commodity market. Post 2021 and the introduction of the NGRBCs, SEBI has mandated BRSR or Business Responsibility and Sustainability Reporting, for the top 1000 listed companies (by market capitalisation).

For CSOs reporting standards have undergone reform with the introduction of various requirements, including the Darpan portal, annual financial and narrative reporting, and further requirements within the CSR audit framework applicable to companies. ESG reporting, though not currently mandated for the non-profit sector, aligns very well with their purpose of being, their multistakeholder approach, and their perspective of minimal harm to everyone with whom they work.

Specific learning for participants

  • Understand some of the current ESG mandate– what are some of the critical material, governance, and regulatory issues, and how are the expectations of the Govt, CSR partners and stakeholders changing for the sector.
  • Learn the various sustainability reporting frameworks, standards, guidelines, ratings, rankings and indices and how organisations can customise and build their own ESG reports based on their thematic area of work following the BRSR principles and the principles of non-financial disclosures
  • Develop an Organisational Sustainability Culture – what are some of the sustainability risks and challenges? What should your senior leadership and board members know about sustainability reporting and why?
  • Understand the concept of double materiality and how to arrive at issues that are material for the organisation and its stakeholders.
  • Help CSOs to promote standards within the organisation in order to be able to garner financial support through Social Stock Exchange, which is first emerging.

Who should participate

  • Company leaders
  • CSR Representatives
  • NGO Leaders/ Professionals

Facilitating Organisation

School of Sustainability, XIM University (https://sos.xim.edu.in/)

The School of Sustainability is established at XIM University to fulfil XIM University’s social and environmental mission of bringing about transformation in our society. The School, being the first of its kind in India, aims to create and nurture the next generation of managers and leaders who can anchor and accelerate sustainability as a strategy for economic growth and sustainable human development. The School is based on the values of education with social compassion, environmental consciousness and cultural diversity.

Prof. Sutapa Pati is an accomplished industrial designer and academician who is currently Academic Dean, School of Sustainability, XIM University, Bhubaneswar. Sutapa Pati holds a Bachelor’s Degree in Mechanical Engineering from UCE, Burla and Masters in Industrial Design and PhD in Sustainable Design from IIT Delhi. She has worked in corporate research and development. Sutapa has also worked in the sector of microfinance and livelihood generation. She was involved in the conceptualization phase of setting up of Mahatma Gandhi Institute for Rural Industrialization (supported by IIT Delhi) for the Rural Engineering and Crafts Division. She has been associated with Mission Shakti as a lead trainer for womens’ self help group members. She teaches courses for post graduate students in Sustainability Management, including business model design and designing organizations for sustainability, Green building and energy systems, Sustainability reporting and circular models.