cKinetics report “Cracking the Conundrum” – ESG Investing in India – May 15, 2013

In mid-May 2013 cKinetics published a report entitled, “Cracking the Conundrum – An investor and policy view to leverage standardization of environmental and social disclosure and reporting.”

As explained in the executive summary, “‘Cracking the Conundrum’ details how investors can converge to crack the key conundrum of standardization of E&S disclosure and reporting: ‘a standard will get accepted only if it has a large number of adopters, however adoption will only happen if a standard gets accepted’.

As per the latest estimates developed by cKinetics, these investors (referred to as Finance+ investors) represent Rs 3 trillion ($55 billion) in India, which is 1% of the world’s total responsible capital. In addition to this, Indian and Global banks are lending Rs 4.4 trillion ($80 billion) to sectors, in which E&S factors are considered.

The report makes the case that as standardization of E&S reporting occurs, investors that have adopted it will increasingly interact amongst themselves. Their Assets Under Management (AUM) is expected to grow from Rs3 trillion ($55 billion) presently to Rs5.5 trillion – Rs9.6 trillion ($100 billion – $175 billion) in 5 years and forecasted to be at Rs13.2 trillion – Rs17.3 trillion ($240 billion – $315 billion) in 10 years.

You may download the report from the cKinetics internet site.