At the recent Dun and Bradstreet ESG award ceremony in Mumbai, L&T Finance Holdings, a top non-banking financial company (NBFC), received recognition for its ESG initiatives and a prize for ‘Business Sustainability.’ The ESG Leadership Summit, which honours businesses for their ESG performance and advancement towards the worldwide United Nations Sustainable Development Goals, was the unique occasion for the award ceremony. 

The distinguished judging panel adheres to strict selection standards, and it is worth noting that Dun & Bradstreet India hosted the first-ever ESG Leadership Summit 2023 this March with the subject ‘Building A Sustainable Future’, to recognise the importance of ESG. The summit also included the publishing of the premium report titled "ESG Champions of India", the presentation of the "ESG Awards 2023", and other comprehensive panel discussions.  

L&T’s Take

Talking about the major win, Managing Director and CEO of the company, Dinanath Dubhashi, said, “Sustainability is at the core of every business that we do and is a top commitment to our stakeholders. In fact, we were one of the first NBFCs to embrace sustainability and make it a part of our DNA. Winning in the 'Business Sustainability' category in the inaugural edition of the Dun and Bradstreet Awards is a shot in the arm for us. This award conferred by a reputable business decisioning data and analytics provider is yet another validation of our ESG practices.” 

ESG performance of companies helps analyse the non-materials aspects of a business and their importance to the growth of company sustainability in the long-run. So, recognition by one of the leading suppliers of business information and research, Dun and Bradstreet, is both a reputation boost and also helps in achieving UN SDG goals.  

Dun & Bradstreet’s Take

Managing Director and CEO, Avinsash Gupta, noted, “ESG is no longer an optional requirement for companies globally, but a mainstay conversation in every boardroom. Dun & Bradstreet has been helping companies globally in implementing sustainability principles and advancing Sustainable Development Goals. Dun & Bradstreet India's 'ESG Awards 2023' acknowledged and recognised companies for their ESG performance towards achieving Sustainable Development Goals. I congratulate L & T Finance Holdings Limited on winning the D & B ESG Award, and I hope to see more companies become ESG champions in the coming years.” 

Sector ESG Initiatives

L&T Finance Holdings has always planned long-term ESG goals. The company committed to and fulfilled an ESG initiative to become water neutral by 2022, while also aiming for carbon neutrality by 2035. Similarly, sector competitor Bajaj Finserv aims to provide safe and sustainable products to its customers, with a goal to reduce paper consumption throughout its company operations. Another prominent company, Aditya Birla Group, is helping integrate ESG into a responsible and inclusive business portfolio by financing green projects.

Takeaway

The Dun & Bradstreet 'ESG Champions of India' study illustrates the effects of ESG listing and ranking on organisations and acknowledges their contribution to sustainability. The study includes the opinions and outlook of business leaders and reflects the dynamics and pulse of Indian corporations, and while it’s interesting to note that L&T won in the ‘Governance’ category, the social and environmental components must also be given due attention. In doing so, NBFCs may strengthen their corporate governance and risk management, reduce the effects of climate change, and create long-term value for shareholders by addressing ESG issues. 

While ESG reporting is set to become mandatory, NBFCs still have a long way to go to equally integrate ESG across operations to make the transition to sustainability.

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