ESG investing is becoming more popular in India, and it is crucial for Indian firms to comprehend its implications and take action to satisfy the rising demand for sustainable investments. This may be accomplished by include ESG performance disclosure in annual reports, implementing sustainable business practises, and adhering to the rules and regulations set out by SEBI and the GoI. Companies that adopt sound ESG practises from the start will be better positioned during the fundraising stage to provide any ESG-specific representations and warranties required by the investor and defend against price adjustments brought on by unfavourable ESG factors as ESG considerations become more prevalent in private equity investments. Indian companies may consider conducting ESG due diligence and developing an ESG action plan based on the findings of ESG, which would include obtaining the necessary licences, drafting policies on anti-corruption, environment and social issues, etc., waste disposal process, maintaining a healthy environment for employees, and taking precautions against fire, among other things.

1. ESG-DRIVEN
PRIVATE
EQUITY
INVESTMENTS
NAME- TUSHAR JAIN

2. AG E N DA
INTRODUCTION
PERTINENCE OF ESG DISCLOSURE
SEBI-MANDATED ESG REGIME
MAJOR CHALLENGES TROUBLING TO
ESG
CONCLUSION

3. I N T R O D U C T I O N
 India saw its highest level of deal-making in the past 12-18 months, with investments in
PE and VC soaring and the stock market booming. The biggest foreign direct
investment (FDI), at $83.57 billion, was recorded in the years 2021–22, according to
data made public by the Indian government.
 ESG investing is becoming increasingly popular in India, with businesses with sound
ESG policies being more profitable and sustainable. The Government is developing a
framework to encourage more businesses to embrace ESG practices.
 The regulatory framework for ESG is covered by a number of laws, including Factories
Act, Environment Protection Act, Air (Prevention and Control of Pollution) Act, Water
(Prevention and Control of Pollution) Act, Hazardous Waste (Management, Handling
and Transboundary Movement) Rules, Companies Act, Securities and Exchange Board
of India (Listing Regulations), Prevention of Money Laundering Act, 2002, Prevention of
Corruption Act, 1988.
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4. P E R T I N E N C E O F E S G D I S C L O S U R E
 Investors should pay close attention to ESG disclosures by taking climate change into
account when valuing assets and allocating capital, figuring out how a company's
business practices influence the environment and society and estimating how climate
change could affect a company's financial stability in the future.
 ESG disclosures help businesses identify transitional risks, evaluate sustainability
prospects, and take necessary actions to prepare for upcoming changes. They also help
businesses assuring their stakeholders of their values and regard for ethical business
practices.
 Consumers may identify ethical companies through ESG disclosures. These companies
priorities responsible growth above maximizing profits. Additionally, companies may use
their disclosures as a component of their marketing plan to draw in more customers.
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5. S E B I - M A N D AT E D E S G R E G I M E
 Securities and Exchange Board of India (SEBI), the country's capital markets regulator,
expanded the BRR and replaced it with a new business responsibility and sustainability
report (BRSR) with effect from the fiscal year 2022–2023.
 It is mandatory for the top 1,000 listed entities by market capitalization to include a
BRSR by listed entities, which is referenced in Regulation 34(2)(f) of the Listing
Regulations.
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6. M A J O R C H A L L E N G E S T R O U B L I N G T O E S G
 The environment is a big subject of concern and will probably experience substantial
legal and policy growth in the future due to the alarming levels of air pollution in Indian
cities.
 While SEBI's BRSR format for ESG disclosures has addressed some shortcomings in the
earlier BRR format, some issues still exist, and it is anticipated that the amount of
disclosure on ESG problems will increase in the years to come.
 Another issue on which supporters of ESG are concentrated is diversity on company
boards and in senior leadership positions.
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7. C O N C L U S I O N
 To meet the growing demand for sustainable investments, Indian businesses must
understand the implications of ESG investing and take appropriate action.
 Companies that start out with good ESG practices will be in a better position to give any
ESG-specific assurances and warranties required by the investor throughout the
fundraising stage.
 Indian businesses may think about performing ESG due diligence and creating an ESG
action plan based on the results.
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8. T H A N K YO U
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