Mukund Rajan - Outlast: How ESG Can Benefit Your Business

This book, completed during an unprecedented pandemic, is dedicated to our loving families, and to the indomitable human spirit that can build a world where people, planet and prosperity are in perfect balance.

Contents

ESGEnvironment, Social and Governance

AAPAam Aadmi Party

ADAGAnil Dhirubhai Ambani Group

AIFsAlternate Investment Funds

AIGCCAsia Investor Group on Climate Change

ARAIAutomotive Research Association of India

ASSOCHAMAssociated Chambers of Commerce (of India)

B2BBusiness to Business

BJPBharatiya Janata Party

BRRBusiness Responsibility Report

BRSRBusiness Responsibility and Sustainability Report

BSEBombay Stock Exchange

CAACitizenship Amendment Act

CAGComptroller and Auditor General (of India)

CAGRCompound Annual Growth Rate

CARECredit Analysis & Research Limited

CalPERSCalifornia Public Employees Retirement System

CalSTRSCalifornia State Teachers Retirement System

CBDR-RCCommon but Differentiated Responsibilities and Respective Capabilities

CBICentral Bureau of Investigation

CDPCarbon Disclosure Project

CEOChief Executive Officer

CIIConfederation of Indian Industry

CILCoal India Limited

CMSCentre for Media Studies

CNGCompressed Natural Gas

COAICellular Operators Association of India

EESLEnergy Efficiency Services Limited

EIAEnvironmental Impact Assessment

EPA(United States) Environmental Protection Agency

EPR Extended Producer Responsibility

ESOPEmployee Stock Option Plans

ETCEnergy Transitions Commission

FCAFalse Claims Act

FCLT Focusing Capital on the Long Term

FICCIFederation of Indian Chambers of Commerce and Industry

GCFGreen Climate Fund

GISR Global Initiative for Sustainability Ratings

GPIFGlobal Pension Investment Fund

GRIGlobal Reporting Initiative

GSIAGlobal Sustainable Investment Alliance

HULHindustan Unilever Limited

IAMAI Internet & Mobile Association of India

IBBIInsolvency and Bankruptcy Board of India

IBCInsolvency and Bankruptcy Code

ICRA(previously) Investment Information and Credit Rating Agency of India Limited

IFINIL&FS Financial Services Ltd

IIRCInternational Integrated Reporting Council

IL&FSInfrastructure Leasing and Financial Services

IiASInstitutional Investor Advisory Services

ILOInternational Labour Organization

IPCCIntergovernmental Panel on Climate Change

IPS Indian Police Service

IRIntegrated Reporting

IRDAIInsurance Regulatory and Development Authority of India

IRENAInternational Renewable Energy Agency

IRSIndian Readership Survey

ISA International Solar Alliance

ISOInternational Standards Organization

LICLife Insurance Corporation of India

NCAPNational Clean Air Programme

NCLT National Company Law Tribunal

NDCNationally Determined Contributions

NFRANational Financial Reporting Authority

NGONon-Governmental Organization

NGRBCNational Guidelines on Responsible Business Conduct

NHRCNational Human Rights Commission

NPANon-Performing Asset

NSENational Stock Exchange

NTPCNational Thermal Power Corporation

OECDOrganization for Economic Cooperation and Development

ORFObserver Research Foundation

OSOWOGOne Sun One World One Grid

PATPerform-Achieve-Trade

PFRDAPension Fund Regulatory and Development Authority

PCGTPublic Concern for Governance Trust

PPPPublic-Private Partnership

R&DResearch and Development

RBIReserve Bank of India

RTIRight to Information

SASBSustainability Accounting Standards Board

SDGSustainable Development Goal

SEBISecurities and Exchange Board of India

SECSecurities and Exchange Commission

SIAMSociety of Indian Automobile Manufacturers

TAAPTata Affirmative Action Programme

TBLTriple Bottom Line

TCFDTask Force on Climate-Related Financial Disclosures

TERIThe Energy and Resources Institute

TISSTata Institute of Social Sciences

TRAITelecom Regulatory Authority of India

UNUnited Nations Organization

UNCHEUnited Nations Conference on the Human Environment

UNEPUnited Nations Environment Programme

UNFCCCUnited Nations Framework Convention on Climate Change

UNPRIUnited Nations Principles for Responsible Investment

USLPUnilever Sustainable Living Plan

WEFWorld Economic Forum

WHOWorld Health Organization

WMOWorld Meteorological Organization

WTOWorld Trade Organization

VWVolkswagen

T his book was completed in the shadow of the worldwide spread of COVID-19. From one infected patient in the city of Wuhan, China, in December 2019, the virus spread to over 1 million patients in over 180 countries within three months. By the time this manuscript was ready for publication, the virus had infected over 235 million people, and killed over 4.8 million people.

The rapid spread of COVID-19 illustrates how interconnected the world has become, with travellers unwittingly transmitting the virus from country to country. It has also revealed the fragile existence of numerous economic players, from microenterprises to national governments.

With strict lockdowns imposed across many countries, millions of small retailers, eateries, beauty salons, garages and travel agents unable to earn incomes have shut shop. At the other end of the spectrum, many countriesfrom small island nations that depend heavily on international tourism to Middle Eastern ones that rely on the sale of oil, the price of which crashed amidst the worldwide economic slumpare struggling to balance their books. Global economic growth has been negative in 2020, contracting by around 5 per cent as compared to the previous year.

At such a time of great economic stress, with collapsing customer demand, supply chain disruption, unemployment, economic recession and increased uncertainty, the values espoused by many in the corporate sector have come into question. The limited financial reserves of several companies and their inability to sustain overheads beyond a few weeks of the COVID-19 crisis have revealed their excessive short-term focus and weak long-term planning. Their decisions to cut jobs and dismiss casual labour, withdraw job offers and reduce the pay of their staffers during the crisis have raised questions about their concern for critical stakeholders such as their employees and workers.

This is the case in India as well. The grim sight of millions of migrant labourers walking hundreds of miles back to their homes, families in tow, without prospects and often without even being paid for their recent labour, has shaken the conscience of fellow citizens.

Economic growth for the 202021 fiscal has been negative in India, and tens of millions of Indians are likely to find themselves out of work for a fair length of time. With the largest poor population in the world, India can ill afford this.

Sadly, the COVID-19 catastrophe is a dress rehearsal for other major challenges that lie ahead, especially the climate change crisis. Indias long coastline, with its several hundred million residents, is physically threatened by the rise in sea levels that global warming will cause. The country already suffers some of the hottest summers across the globe, and rising temperatures caused by global warming will make outdoor work impossible during certain parts of the season.