The responsible investing approach is gaining momentum in stock market investing. Investors are gradually becoming aware of the issue, but the companies whose shares are traded on the stock exchanges (SEs) are also taking initiatives to adhere to the principles of ESG (Environment, Social and Governance) investing.
According to market experts, ESG certification is important from the point of view that it adds value to the company when its stock is being considered to be added to the portfolio. Besides other criteria for stock selection like revenue, net profit, earning per share, and others, the ESG criteria too is gaining popularity among the investors. The ESG certification/ratings convey the message to those investors who are willing to invest in shares of such companies, which are displaying a sense of responsibility towards the environment, society and follow good governance practices.
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Conversely, companies whose majority of revenue comes from sectors like tobacco, liquor, live stocks, and other sectors that are harmful to nature do not qualify to be included in the portfolio of such funds even if they qualify on other parameters stated above. Not only institutional investors but some of the big investors have also begun to follow the ESG criterion while undertaking stock selection, for their portfolio, they added.
Towards this end, the country’s largest bank, the State Bank of India (SBI) has made considerable progress. It has garnered two new green certificates from Indian Green Building Council (IGBC) for the State Bank Bhavan, SBI’s Corporate Centre, sprawling over 18,000 square feet area in Mumbai’s Nariman Point and the Dunedin Bungalow, the official residence of SBI chairman, located at posh Malabar Hill area of South Mumbai.
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IGBC, part of the Confederation of Indian Industry (CII) was formed in the year 2001. Its vision is to enable a sustainable built environment for all and facilitate India to be one of the global leaders in the sustainable built environment by 2025.
With these two additions, SBI now boasts eight buildings that are green certified by the IGBC. The Dunedin Bungalow received a Platinum Certification which is the best rating the IGBC gives, whereas, The State Bank Bhavan was awarded the Gold Certification.
A few attributes that helped SBI’s Dunedin Bungalow earn its Platinum green habitat certification include the property’s ability to harvest rainwater, manage solid waste, organic farming, solar-panelled rooftop, etc.
Whereas, the State Bank Bhavan achieved its Gold certification because of features such as energy-efficient lifts, ample green spaces in the building, PV rooftop, and LED lighting among others. All of these features are a contributing factor in reducing SBI’s carbon footprint and help maintain an eco-friendly environment.
Understanding the urgency of our situation and the overall impact of global warming on the surroundings, people across the globe are making green-rated structures a practicing norm. Individuals are becoming more mindful of carbon emissions and their impact.
