Challenges to Sustainable Investing and the Way Forward

Goutham Sabbani

Abstract: In recent years, the global dialogue on sustainable development has gained significant traction and this has led governments and corporations worldwide to reevaluate their strategies concerning environmental, social, and governance (ESG) issues. India, as a significant global market player, is now viewing sustainability as both an ethical imperative and a strategic opportunity. Sustainable investing in India requires that companies are evaluated for their societal contributions in addition to their financial returns, urging investors to consider a broader spectrum of social, political, and environmental factors. Recent studies advocate the importance of good governance in attracting foreign direct investment (FDI), important for advancing sustainability goals. In this paper, we examine the current ecosystem of sustainability investment in India, characterized by a mix of challenges and opportunities.

Keywords: Sustainable investments, ESG, Green Finance, CSR