Reforming the Business Outlook
Contributing to the environment and society is of paramount importance, whether or not, mandated by law. We believe in it with conviction and help you comply with the requirements, if mandated or help you plan and prepare for the same to build trust.

KCM, since its foundation in 1958, has held integrity as an intrinsic and an immutable part of its professional practice. We believe that this principle adopted by us wholly complements our ESG advisory and assurance practice.

A paradigm shift is coming in the way businesses are perceived by various stakeholders, including potential investors. It is becoming essential for a business to disclose its efforts towards creating value in Environment, Society and Governance. Private equity firms are increasingly looking more favourably towards businesses which have higher ESG rating, and it is anticipated that soon, a higher ESG score would become an uncompromising condition for attracting investors.

With the introduction of the Environment, Social & Governance (ESG) mandate by SEBI, top 1000 listed companies are already required to file a Business Responsibility and Sustainability Report (“BRSR”) through which such companies can disclose their value creating measures in the aspects of Environment, Society & Governance.

SEBI has also brought out a BRSR Lite for the Unlisted companies who want to report on their own volition.

If you are a listed company, even if not part of the top 1000 list, it is advisable to get an ESG check done. In near future, SEBI may make filing of BRSR mandatory for all the listed companies. In case you are a listed company and have not considered carrying out an ESG assurance, it is advisable to look in that direction and remain prepared for any mandate from SEBI.

If you are an unlisted company looking for fresh investments or looking to hive off your business for a good valuation, it is essential to remember that good valuation would now also include the ability of the business to remain sustainable and the attitude of the business towards enrichment of Environment, Society and Governance. These non-financial parameters are evaluated though ESG assurance.

It must be remembered that ESG evaluation seeks to not only increase the potential to receive investment but also assists in enhancing the long-term value of the business among various stakeholders, other than investors. For example, adopting policies based on ESG framework can help in developing and retaining a talented workforce. Such policies may also improve the relationship with the community directly impacted by your business. Further, adopting ESG measures can also pave the way for cost reduction through process improvement and thereby augment the returns from the business.

For more information, contact esg@kcmehta.com