Capital markets regulator Sebi has constituted an advisory committee for advising on ESG (atmosphere, social and governance) associated issues within the securities market.
The committee can be headed by HDFC Mutual Fund Navneet Munot, the Securities and Exchange Board of India (Sebi) stated in an announcement.
Apart from Munot, the committee has consultants, together with R Mukundan, MD and CEO of Tata Chemicals; C Siva Kumar, government director of NTPC, Amit Talgeri, chief danger officer at Axis Bank, Sharad Kalghtagi, ESG head Cipla; Amit Tandon founder and MD Institutional Investor Advisory Services; J N Gupta, founder and MD of Stakeholders Empowerment Services and Rama Patel, Director of Crisil Ratings.
In all, the committee has 19 members and additional, 4 Sebi officers can be secretariat to the committee in addition to co-ordinator.
The phrases of reference of the committee embody enhancements in enterprise duty and sustainability report, ESG scores and ESG investing.
With regards to enhancements in Business Responsibility and Sustainability Report (BRSR), Sebi stated the panel can be answerable for reviewing management indicators that could be made important – together with these associated to worth chain and growing sector particular sustainability disclosures.
Also, it is going to overview evolving disclosures / metrics which are related to the Indian context and establish areas for assurance and roadmap for its implementation.
In addition, the committee can be look at growing separate or parallel strategy for ESG score tailored to rising market like concentrate on ‘S’ together with employment era.
This can even embody growing uniform indicators of ‘G’ as enter to ESG scores and or credit score scores disclosures within the rationale by ESG score suppliers on what and the way qualitative elements have been factored within the ESG scores or observations.
In respect of ESG investing, Sebi stated the committee will oversee steady enhancement of disclosures particular to ESG Schemes of mutual Funds with specific concentrate on mitigation of dangers of misselling and greenwashing.
“The evolution of standards and norms for ESG is a dynamic process which necessitates continuous evaluation,” Sebi stated.
It can even look at whether or not ESG funds must have prudential norms, if any in addition to long run plan to prescribe ESG disclosures for all mutual fund schemes.
Source: www.financialexpress.com”