Indian Investors Demand Higher Standards for ESG Data

A Deloitte study reveals that over 90% of Indian institutional investors regard sustainability information crucial to their due diligence. However, trust in ESG data is low due to inconsistent ratings, cost constraints, and lack of measurable outcomes. Indian investors favor in-house data over external sources.

A recent study by Deloitte and The Fletcher School at Tufts University highlights that more than 90% of Indian institutional investors now consider sustainability information essential to their due diligence processes.

The study notes significant distrust in ESG data stemming from inconsistencies, cost concerns, and unmeasured outcomes in corporate disclosures. This lack of trust affects the ability of investors to implement ESG strategies effectively.

Deloitte emphasizes the need for improved reporting standards and third-party assurance to bolster investor confidence and meet the growing demand for sustainable investment opportunities. Enhanced transparency and engagement can align companies with investor expectations, ultimately driving better social and environmental outcomes.