Compliance with ESG standards is a top priority for the Tata Group

Tatason’s has instructed the heads of all group companies to urgently compile documents on how each company meets environmental, social and corporate governance (ESG) standards.

They said that ESG compliance could boost the Tata Group’s investment opportunity rating globally and reduce borrowing costs.

They said this month that all the bosses of individual companies are supposed to give presentations on the same thing.

The Covid-19 pandemic and deteriorating environmental conditions have forced decision makers and investors around the world to focus on ESG, forcing Indian companies to make ESG part of their compliance structure. I will.

It is also becoming a regulatory requirement.

Market regulator Sebi calls for increased disclosure granularity and accountability by listed companies in the ESG sector.

“By focusing on sustainable energy, companies have more access to capital and can raise money on more competitive terms, such as reducing costs,” said Climate, a global certification body. Sandeep Bhattacharya, India Project Manager at Bonds Initiative, said. “Government will also introduce some regulations sooner or later in the general move towards net zero emissions worldwide.”

Officials said the Tata Group is pursuing it as a top priority. Group Chairman N Chandra Sekaran said they prioritized incorporating into each company’s growth goals to increase accountability.

“This move is essential due to the growing demand for funding to make global investors and businesses environmentally sustainable,” the group’s top executive told ET.

Tatasons did not comment.

The Tata Sustainability Group (TSG), which is part of Tata Sons, is now acting as a node resource for corporate group sustainability. Tata Sons hired Siddharth Sharma as Group’s Chief Sustainability Officer in 2019.

Tata Motors’ electric product portfolio, including fully electric vehicles, plug-in hybrid vehicles and mild hybrid vehicles, is an important initiative for sustainable business, according to Group sources.

By 2025, Tata Power is considering more than 65% of its power generation portfolio as non-fossil fuel sources. All other group companies are working on ESG standards as part of their future growth strategy.

Increasing investor demand for companies to support ESG will also affect funding and brand image, according to people close to development.

“Many large companies are preparing to comply with standards such as science-based goal initiatives and other global standards,” said Bhattacharya of the Climate Bonds Initiative.

Companies are increasingly demanding to raise offshore funds through green bonds or ESG-compliant bonds.

Birla’s largest domestic cement producer, UltraTech, recently raised $ 400 million in the first offshore bond issuance marked “sustainable.”

Shriram Transport Fin and non-traditional energy companies such as ReNew Power, Greenko and Continuum have taken the same route this year.

Last July, Reliance Industries Chairman Mukesh Ambani announced plans to make the company pure zero carbon by 2035. In February of this year, we procured the world’s first consignment of “carbon neutral oil” from the United States. Exercise to achieve larger goals.

The move to ESG gained momentum after Joe Biden became president of the United States in January. He has set a goal for the United States to reach pure zero carbon by 2050, with China, the world’s largest emitter, aiming to achieve that by 2060.

U.S. Special Envoy for Climate Change John Kerry recently said that the world’s largest emitters, including China, India, Russia and Japan, need to “really step up” and begin to reduce greenhouse gas emissions. .. He called on all nations to increase their ambitions to combat climate change.

Compliance with ESG standards is a top priority for the Tata Group

Source link Compliance with ESG standards is a top priority for the Tata Group

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