At the NaBFid Infrastructure Conclave in Mumbai on September 12, Pramod Rao, Executive Director of SEBI, emphasized the need to develop an ESG reporting system. He pointed out that currently, there are around eight to ten different international reporting systems for green or sustainability reporting, which leads to confusion.
ESG refers to Environment, Social and Governance.
To streamline processes and reduce costs, especially for exporters, Rao proposed the creation of a single ESG data exchange or portal.
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He further suggested that investment institutions such as insurance, pension funds, and property funds should have a green investment mandate similar to their existing mandates for corporate bonds.
Rao also stressed the importance of ongoing “climate and transition fund assessments” to identify funding needs and gaps for domestic industries and energy transitions.
Rao also noted the growth in REITs and InVITs, stating, “Currently, the assets under management exceed Rs 6.5 lakh crore between REITs and InVITs."
"I keep comparing them to AIFs, which have over 1,200 entities, while InVITs have just 30 entities but have already overtaken the entire Alternative Investment Fund ecosystem," he said, adding that this was just the beginning and that much more potential remains untapped.
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