B20 has recommended adoption of universally adaptable ESG standards and disclosures; creation of ESG implementation pathways to accelerate adoption of responsible and sustainable process; augmentation of ESG governance; and attention to business resilience and disaster management through a robust framework
While the G20 leaders are focussed on bigger issues like growth, Multilateral Development Bank (MBD) reform, climate action, women-led development and Digital Public Infrastructure (DPI), the corporate sector is seized of the B20 India recommendations on issues like Environmental, Social and Governance (ESG) regime. The Business 20 (B20) is an engagement group of the G20 for sharing global business leaders ‘recommendation with the G20.
While B20 is chaired by N. Chandrasekaran, Chairman, Board, Tata Sons, the B20 secretariat is headed by Chandrajit Banerjee, Director General, CII. B20 has other industry veterans in various roles. The B20 India has recommended adoption of universally adaptable ESG standards and disclosures that are comprehensive, transparent, inclusive and equitable; creation of ESG implementation pathways to accelerate adoption of responsible and sustainable process; augmentation of ESG governance; and focusing on business resilience and disaster management through a robust framework.
Adoption of universally adaptable ESG standards and disclosures requires policy actions like development of a standard set of definitions/taxonomies through harmonised ESG frameworks for disclosures and reporting and transparency in rating methodologies; and integration of ESG processes in supply chains, recommends B20.
The recommendation on ESG implementation pathways to accelerate the adoption of responsible and sustainable process requires policy actions where regulators agree on and mandate the implementation of a common policy and regulatory framework for standards and disclosures that adopt a phased approach to encourage businesses to apply standard global best practices. The other policy action calls for G20 nations and businesses to incentivise the adoption of sustainable elements in the conduct of business, as per B20.
Augmenting ESG governance calls for establishing a robust governance framework for fostering trust and reliance within society, which is necessary to ensure that the administration supports and facilitates businesses in implementing strong processes, clear accountabilities, and transparent policies on integrity and compliance, accompanied by relevant disclosures based on robust assurance systems. It also calls for establish a clear ESG governance framework with desired mechanisms and disclosures, elaborates B20.
The last B20 recommendation to address business resilience and disaster management through a robust framework calls for policy action to design and implement a resilience framework with a focus on adaptation and strengthening of value chains, including agricultural supply chains and food security.