ESG as a new value creator - welcome to the brave new world

THE pandemic has put many things in perspective - the way we live, work and socialise, for instance. Our priorities have also undergone transformation. The stark differences in social and economic indicators have never been so pronounced as they are now. The digital divide has had an unequal impact on access to education and healthcare, especially in the developing world. Meanwhile, global quantitative easing - spurred on by the pandemic - has made the world flush with funds. Stock markets, commodities, real estate are all on the upward trajectory. This feels a little bit ironic, given the grave circumstances that surround us.

Economists and central bankers are now hopeful that economies will rebound fast. I too am hopeful that the "new world" bounces back and puts this pandemic behind us, at least its most virulent form. But a lot is now at stake. There has not been a time in the last century when we had a real chance to focus on and create real value out of the environmental, social and governance (ESG) paradigm. The corporate and finance world needs to lead by example.

ESG has been around for a while with a large emphasis on the E. Climate change has propelled the E into our living rooms and board rooms. The importance of clean, renewable and sustainable energy will continue to be critical. The regulatory focus globally as well as in India has rightly put a lot of emphasis on the E and the quest for cleaner and greener energy.