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Leaders from the Indian public capital markets and private equity converged in Mumbai on December 15^th at the inaugural edition of the India Sustainable Investment Leadership Summit to define the pathways for sustainable investing in the Indian context

Sustainable investing in India today stands at nearly INR 245,000 Crores (USD 53 billion), revealed a study done by cKinetics and CFA Society India, and deliberated at the event. The event, co-convened by CFA Society India and cKinetics, featured several key figures from the country’s financial and business circles and focused upon the sustainability imperatives facing the investment industry.

Sh. Suresh Prabhu, former Union Minister, and Navneet Munot, CFA, CEO of HDFC AMC and current Chair of AMFI, set the tone for the day’s deliberations as the keynote speakers at the event’s opening plenary by highlighting the challenge and opportunity in front of India’s investment industry leaders. They not only underscored India's unwavering commitment to sustainability but also engaged in insightful discussions on recent strides in renewable energy and the pursuit of carbon-neutral goals.

Navneet Munot emphasized the vital synergy between politics, finance, and science as the trinity driving sustainable initiatives. Delving into the cultural fabric of India, the speakers illuminated how sustainability is ingrained in the nation's ethos, fostering a natural alignment with environmentally conscious practices.

The plenary session also presented the findings of the two state of sector reports: one on ‘Sustainable Investment in India’ and the other on ‘Climate Action by India Inc’, aimed at further catalysing the sustainable finance paradigm across the capital and financial markets

The day’s sessions featured several speakers including Harsha Upadhyaya from Kotak AMC, Pawan Mehra from cKinetics, Aniket Shah from Jefferies Group, Maria Lombardo from Standard Chartered Bank, Akhilesh Tilotia from NIIF, Jay Kothari from DSP AMC, Nana Li from Impax Asset Management, Chirag Mehta from Quantum AMC, Srini Viswanathan from Vibrant Energy and James Alexander from UKSIF /GSIA amongst others.

Speaking at the event, Upendra Bhatt, Managing Director of cKinetics stated, “It has been a pleasure to collaborate with CFA Society India in evolving this strategic initiative that we hope would uniquely evolve as a core enabler in facilitating the coupling of the sustainable investing agenda with the nation’s sustainability transition.”

Rajendra Kalur, CFA, Chairperson of CFA Society India, added that the Summit served as a comprehensive platform for meaningful discussions, insights, and solutions shaping the future of sustainable finance in India.

Several speakers underscored the obligation of the investment profession to deliver returns sustainably, distinguishing sustainable investing from investing in sustainability. Several experts also highlighted the gaps and anomalies in ESG data reporting. Emphasizing the critical need to enhance the reliability of ESG data, the discussion highlighted measures such as improved training on ESG reporting, standardization of reporting standards, and ensuring the accuracy of reported data through robust assurance processes.

Government regulations' role in shaping sustainable investing also featured as a key area of reflection. The speakers emphasized the importance of establishing robust and consistent standards, all while mitigating the cost of compliance to ensure the nascent ESG fund management market in the country can thrive.

The Summit also had a dedicated session delving into the implications of transitional and physical risks of climate change on portfolio returns as well as an exploration of current sustainable investment avenues in India and the challenges in analysing these opportunities.

The role of Sustainable Investment Forums in influencing global policies was also discussed, underscoring the need for a dedicated SIF body in India.

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