Sustainability is not ‘Optional’ – it’s of prime importance not only to our purpose, but also for our growth.
The ESG team is tasked to reflect on Environmental, social and governance (ESG) elements and identify the key priorities for the organisation. As an intentional step towards this thought process, we undertook our first materiality assessment to gain an understanding on what matters the most to our stakeholders.
We have taken a proactive approach to implement ESG risk considerations as a tool to imbibe sustainability practices into our business lines and long-term growth strategy. Adopting ESG assessment presents both risks and opportunities for an organisation. Our internal teams wheedle out companies through a negative screening process to mitigate the risk whereas include thematic sectors through a positive screening process to tap favourable investment opportunities. ESG policy has been strengthened to reflect the ESG risk integration through the credit process.
As a way forward, we are now implementing an ESG scorecard that would evaluate every borrower and investee company’s ESG score to appropriately assess the ESG risk of our portfolio. The company has set a strong foundation for ESG initiatives that we will proactively continue to build upon for years to come.
Now, more than ever, a strong focus on ESG is a business imperative and a key driver of long-term business value creation. At the root of sustainability is the word ‘Sustain – to hold up’; and this can be implemented only when we believe in its larger purpose for the people, and planet at large.