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Environmental, Social Issues Need Focus, Say Experts

Environmental, Social Issues Need Focus, Say Experts

Budget 2022: Environmental, Social Issues Need Focus, Say Experts

Budget 2022: Environmental, Social Issues Need Focus, Say Experts

Experts have suggested that budget should be centered on social and environmental issues.

New Delhi:

Experts agree that the government has committed to becoming carbon neutral by 2070. Therefore, the forthcoming budget must be focused on environmental, social, and governance (ESG), by providing tax and other incentives to promote green economies.

Indian businesses are going through significant changes because of externalities like climate, finite resource availability and technology disruptions.

According to PwC India ESG parameters should be included in budgets when structuring incentives and allocating resources. ESG adoption should be encouraged through research and innovation.

PwC India said that “Additional budgetary allocations, viability-based financing and institutional capacity building are critical for creating an environment for ESG adopting,”

Nirmala Sitharaman, Finance Minister, is scheduled to present the Union Budget in Parliament on Tuesday.

Max Estates Ltd.’s CEO Rishi Raj stated that Max Estates Ltd. is a progressive player in real estate and that his company wants make a positive difference to the environment.

He stated that government interventions and policy changes such as tax rebates for meeting environmental standards and certifications, taxes on harmful activities and subsidies on the use of green products, services, and solar panels can go a long ways in advancing the agenda of sustainability.

Asha Impact founder Pramod Bhasin stated that the Covid-19 pandemic has increased the demand for sustainable investing. It would be great to see initiatives to unlock institutional capital for these investments. They currently lag far behind global allocations.

He said, “This could be allowing CSR investment in ESG-focused AIFs or the development of the Social Stock Exchange to promote capital flow toward ESG-focused enterprises.”

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Vikramjiet Ray, Managing Director at Maccaferri Environmental Solutions Pvt., discussed the Budget’s expectations. Ltd (MESPL), India, said that it should lead India to becoming a green country in accordance with the government’s commitment towards net zero.

“For this, government will need to create an enabling environment for corporations to start budgeting for ESG. Roy stated that ESG investments, just like CSR, should also be recognized.”

Jaya Vaidhyanathan CEO of BCT Digital stated that it was crucial that the Union Budget 2022-23 gives due consideration to ESG in order to ensure sustainable growth.

Vaidhyanathan emphasized that the government’s commitment towards becoming net-zero by 2070 can be seen through numerous initiatives such as the push to electric vehicle adoption.

“The increasing emphasis of Indian enterprises upon ESG is encouraging, as this will certainly contribute to enhancing holistic brand values to multiple stakeholders and maintaining premium stock valuations,” Ms Vaidhyanathan stated.

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