Press Releases

  • TERI to assess sustainable investment potential in India: Study seeks to integrate investment and responsibility

    18 April 2006

    Global interest in the linkages between investment, corporate responsibility and sustainable development is on the increase and now India too will be part of the movement. The Energy and Resources Institute (TERI) is launching the first assessment of the potential for sustainable and responsible investment (SRI) in India. Supported by the Global Opportunities Fund of the UK Foreign and Commonwealth Office, the project will seek to assess how to merge sustainability and esponsibility factors with investment decision-making in the Indian context. It will identify ways in which the investment community can be mobilised to support the progress of enhanced practices that are aligned to India’s wider development needs.

    Led by TERI's London office (TERI Europe), the initiative will build on the growing awareness of the investment relevance of issues such as good governance, business ethics, human resources, environmental management and energy use, as well as community impacts. In India, the business community acknowledges the need to involve financial markets in their efforts to integrate responsible business practices into corporate strategy. In addition, foreign portfolio investors are introducing environmental, social and governance (ESG) factors into their investment decisions.

    "Investor interest in India has never been higher", says Ritu Kumar, Director of TERI-Europe "Equally, pressures to integrate sustainability factors into portfolio management are rising up the agenda. This initiative aims to bring these trends together and identify creative ways in which the investment community in India could become a positive force for improved corporate performance on environmental, social and governance matters". A steering group of members from the Indian and European investment communities will guide and evaluate the content of the project.

    The project will study the current state of ESG in the investment chain in India and review the relevance of international experience in SRI for India. The project will include an opinion poll of Indian investor expectations; a survey of major domestic and foreign funds; interviews with leading Indian investment banks; a review of how key Indian listed companies communicate ESG performance to the financial community; a review of ESG standards addressed by global investors and an analysis of the main global trends in SRI investment and relevance for India.

    TERI-Europe is the London based European affiliate of the The Energy and Resources Institute (TERI), India's premier research organisation in energy and environment issues.