India ESG & Green Finance

Outcomes from the 2nd UK India Sustainable Investment Forum

14 October 2020

Organised by High Commission of India and Indian Partnership Forum (IPF), in association with the City of London Corporation

Commemorating 150 Years of Mahatma Gandhi

Draft Recommendations and Concluding Statement:

The UK India 2nd Sustainable Investment Forum on 14 October concluded that there is need to strengthen the mechanism for enhancing the flow of ESG, impact and Sustainable investment to India.

While the global market for ESG institutional investments currently stands at USD 31 trillion and growing, the USD 25 billion in Indian investments classified as ESG falls short considerably by a potential USD 380 billion when compared to India’s share of global institutional investments.

For India to fulfil its potential as a destination of ESG inward investment a new mechanism is urgently required to engage global institutional investors with the aim of overcoming hurdles, enabling large scale institutional capital flows and establishing India as a key destination for ESG related investing.

Environmental, Social and Governance standards and frameworks are the foundation of ESG related funds that now represent 41% and growing of USD 75 trillion global stock exchange value, and these ESG frameworks require a comprehensive approach to investment analysis and decision making that go beyond traditional investment methodologies.

The UK institutional investment industry is considered the global leader by market participants, regulators, and policy makers in developing, establishing, and employing institutional ESG standards and frameworks to managing funds. With more than USD 7 trillion managed by UK institutional investors, engaging with this community will be crucial to unlocking India’s ESG potential.