ESG, also known as environmental, social, and governance, is basically a criterion that helps people understand how companies perform as stewards of nature. Not only that, it understands the relationships companies have with their stakeholders, how transparent they are regardless of their disclosures along with the management practices while taking a look at the ethical and moral degree of leadership, etc.
The focus for most distributors, retail investors, and advisers has been on returns. But as society continues to evolve, many are moving towards sustainability. Companies that generate high profits every year may also lose prominence or value within the horizon if they have even lower ESG scores. Thereby, they all end up losing their capital flows as well. With ESG gaining such global importance, here’s a list of the top 10 businesses whose investments are guided by ESG.
- Godrej Consumer Products, alongside Godrej India, have become the top Indian companies that have jumped onto the ESG wagon recently, asserting social, environmental, and governance performances. Havells has recently eliminated its usage of radioactive isotopes and is moving towards initiatives that promote renewable energy.
- P&G has also introduced fairy ocean bottles which contain 10% plastic as well as 90% recycled plastic. Their 100% recyclable bottles were launched to show that they can be used to prevent plastic from reaching the ocean.
- Utra Tech has also ranked amongst the top companies, even on an international level, as they have started a new strategy that goes low on carbon. This definitely falls in line with the United Nations Framework and protects the environment too.
- Essar is also another company that has entered ESG in India, and overseas (especially the United Kingdom). Led by Shashi Ruia, Ravi Ruia, & Prashanta Ruia, their future investment plans are guided by Decarbonisation (sustainable green energy), Decentralisation and Digitisation. Their key focus is on energy transition to cleaner and greener sources, with investments lined up in Hydrogen production (in the UK), becoming the largest CBM (a clean fuel) producer, and the biofuel, & renewables (solar and wind power) businesses. .
- Recently launched by Asian Paints, Project NEW will focus on facilities as well as activities that are ecofriendly and do the job of minimizing negative business impact, and helpnurture and improve biodiversity.
- PI industries have also made the latest advancements in the fields of agriculture across many locations.
- Hindustan Unilever Limited (HUL) comes next. They have recently been awarded excellent leadership rankings in sustainability services that they started recently. HUL also started the whole Suvidha Center, which is now in Mumbai’s slums and caters to people’s hygiene issues, and access to drinking water and sanitation.
- Dabur India also launched Sundesh recently, which is a voluntary organization that has the objective and purpose of developing rural areas.
- Procter & Gamble Hygiene has also experienced sales growth & has experienced a massive amount of profit growth within the industry. The company has also offered excellent 12-month trailings that come with an EPS value of 133.42 for its stakeholders.
- Page Industries are also manufacturers who work on building socks, loungewear, and innerwear. They also have a strong ROE track record while keeping a good payout which is presently the highest in terms of the dividend within the whole industry.
Many top corporations in India are leading their way toward limiting carbon footprints and that is highly commendable. However, the plan to achieve these targets has just begun. Hence, it is essential that a sustained effort is made by Indian corporates to ensure a better future for the country.