With the Indian consumer market experiencing remarkable growth, India is set to play a pivotal role in the global consumer landscape. Businesses are expected to take cognizance of the way they conduct business and how it impacts the society at large. Environmental, Social and Governance (ESG) factors have emerged as key pillars that influence reputation, resilience, and long-term success of an organisation. As organisations grapple with the challenges of sustainable development and ethical operations, ESG integrity emerges as a critical touchstone for gaining consumer trust.
Non-compliance of “ESG” regulations may result in significant penalties and reputational loss due to the heightened expectations for corporate responsibility on environment and social equity. As per KPMG in India’s POV, ‘Redefining Consumer Trust’, enforcement by Indian regulators is expected to become stricter as the “ESG” environment matures in India. Organisations need to be proactive in effectively mitigating the “ESG” risks to ensure long-term sustainability and enhance financial performance. But how can they mitigate ESG integrity risks? As a first step, organisations can include mitigating the “ESG” integrity risks in their existing risk management framework. Having a dedicated “ESG” risk oversight structure will ensure adequate “ESG” compliance and remediation measures for “ESG” related incidents”.
