IIM Ahmedabad, NIIF to set up India’s first ESG research chair

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The Indian Institute of Management Ahmedabad (IIM-A) will establish a first of its kind research chair in ESG (Environmental, Social, and Governance) in collaboration with government run National Investment and Infrastructure Fund Ltd (NIIF), a sovereign linked alternative assets manager.

The initiative will engage with industries to create long-term ESG oriented business strategies and practices, conduct research on globally relevant ESG issues, and will be acting as a knowledge partner for government policy formulation.

While IIM-A argued that the industry is increasingly realizing the importance of incorporating ESG in their operations, NIIF said it is crucial for fund managers to create a sustainable and responsible investment community to unlock significant value.

“The industry is increasingly realizing the importance of recognising and incorporating ESG in their operations. There is a need for extensive research in the area, and the designing of a frame of reference that can help Indian companies integrate ESG fundamentals in their business strategies and decisions in the long run,” said Errol D’Souza, Director of IIM-A.

“The research chair for ESG will work towards structuring and crafting a strategic roadmap for policy makers, practitioners, and students at the Institute to help plug in gaps in research and development in the area,”  D’Souza added.

Sustainability is fast becoming a key priority for corporates around the world, both linked to their company branding strategy as well as expectations of their shareholders. India has introduced new environment, social, and governance (ESG) reporting requirements for the top 1,000 listed companies in the country by market capitalization. Lot of investors worldwide are also evaluating the ESG compliance by firms before pumping in funds.

“As India marches towards its Net Zero goals, we believe that the next leaders of industry will rise from a sound foundation of adopting best-in-class ESG practices. Strengthened by our partnership with IIM-A, we hope to lead the conversation and actions around climate preservation and sustainable development,” Sujoy Bose, Managing Director and Chief Executive Officer, NIIF said on February 3.

NIIF is a collaborative investment platform for international and Indian investors, anchored by the Government of India.

The ‘NIIF Chair in ESG at IIMA’ will function as a key hub of knowledge and insights that allows businesses and policy makers incorporate ESG principles in their long-term business and governance decisions. It will work closely with the Arun Duggal ESG Centre for Research and Innovation at IIM-A, the premier B-School in India.

NIIF Ltd said it is crucial for fund managers to create a sustainable and responsible investment community to unlock significant value for stakeholders as well as the broader society. The setting up of the NIIF Chair in ESG at IIMA will help build an ecosystem of stakeholders and shape the future of adopting best practices in ESG in the country.