Jain sees greater private capital participation in the Indian ESG market
India has a high potential for growth in the development of sustainable projects with an opportunity to mobilise US$1 trillion for top ESG priorities, particularly for financing the climate transition, by 2030.
“This capital could also play a critical part in bridging funding gaps such as pollution and waste management, as well as poverty and income inequality,” said a Standard Chartered report “Sustainable Banking Report 2022: Mobilising retail investor capital”.
The report says an overall US$8.2 trillion of investable retail wealth could be channelled into sustainable investments by 2030 to finance ESG objectives.
The new research identifies the potential for retail capital mobilisation across 10 growth markets, highlights barriers faced by investors and provides solutions to expand sustainable investing (SI) into a mainstream asset class.
India has a high potential for growth in sustainable investing, largely due to its significant population and rising domestic wealth, according to the research report released on 27 Sept 2022.
“Across India, 46% of investors want to help restore the environment while nearly 40% of investors want to put their money to hedge against ESG risks, and 33% want to make a positive social impact,” it said.
However, a better regulated ESG market, coupled with a growing pool of retail investors, could see India’s US$1 trillion of potential retail capital directed toward addressing ESG issues.
The top ESG priorities for investors in India include:
• Climate change and carbon emissions (38%)
• Pollution and waste management (34%)
• Poverty and income inequality (27%)
Investor barriers need to be overcome to unlock US$1 trillion, it added.
The report further highlights the need for climate-themed investment solutions to be made more widely available to translate this investor interest into actual impact.
Saurabh Jain, Head, Wealth Management, Standard Chartered Bank, India, said, “To encourage greater private capital participation in the ESG market, India has already taken steps to improve transparency and regulate the ESG rating process.
“Our survey too throws up heartening numbers about interest levels of retail investors towards addressing ESG risks. India has one of the strongest investment potentials in this regard.
“This individual retail interest when added to government and corporate spending will play a huge role in supporting sustainable development and mitigating climate change.
“As a bank, we look forward to helping investors channel their funds towards meeting their goals of creating a better world for the future generations,” he said. fiinews.com
