ICSI Proposes Principle-Based Approach To Address Climate Change

New Delhi [India], December 4: With the 30th edition of the Conference of the Parties (COP 30) concluding in Brazil, the pressing issue of Climate Change compelled the international community to take multilateral measures and brought forward new commitments and tools to unlock climate finance.

For business, it reaffirmed the importance of adopting a pragmatic approach in embedding Environmental, Social, and Governance (ESG) principles into corporate strategy from the ground up for long-term competitiveness.

As a leading statutory body proposing best practices in Corporate Governance, the Institute of Company Secretaries of India (ICSI), framed stewardship as the responsible management of assets and relationships for long-term value creation and introduced the ICSI Guiding Principles on Stewardship (IGPS).

The International Financial Services Centres Authority (IFSCA) has also recognised the IGPS for adoption by the Fund Management Entities and Institutional Investors in the IFSCs to safeguard the interests of clients, beneficiaries and society at large.

Placing long-term value and sustainable benefits at the core of stewardship practice and emphasising stewardship beyond compliance, the IGPS leverages the significant role of Investors and Stewards in promoting principle-based governance and sustainable development.

Institutional Investors and Fund Managers can help organisations shift focus from Short-Term Gains to Long-Term Value Creation by demanding the implementation of a robust ESG framework that can prioritise sustainable growth over quick returns.

To translate the principles into practice and facilitate an effective engagement strategy, this year, the ICSI launched a Stakeholder Engagement Toolkit on ESG to supplement IGPS. This toolkit is aimed at assisting and equipping Company Secretaries and Boards in devising a comprehensive ESG policy for companies.

The ICSI has also introduced the ICSI Principles on Climate Change Governance (IPCG) this year to enhance transparency in climate-related disclosure. Aimed at guiding entities, the framework includes guidance on establishing metrics and targets to evaluate sustainability performance and progress toward climate goals.

Highlighting the preemptive approach of the ICSI, CS Dhananjay Shukla, President, the ICSI, said,“Integrating climate consideration into business frameworks requires a cohesive methodology of well-crafted principles, detailed guidance on climate and sustainability matters and equipped professionals who can coherently translate it into reality. As a leading force in promoting best practices, the ICSI is offering it all through its various initiatives.”

Echoing the sentiments, CS Asish Mohan, Secretary, the ICSI, said, “In a world where climate change is requiring corporations and nations, investors and investees, to act strategically, the Institute of Company Secretaries of India aims to utilize the significant pedestals occupied by these investors and stewards and promote principles-based governance to support sustainable development”. 

About ICSI 

The Institute of Company Secretaries of India (ICSI) is a premier professional body set up under an Act of Parliament, i.e., the Company Secretaries Act, 1980, for the regulation and development of the profession of Company Secretaries in India. It functions under the jurisdiction of the Ministry of Corporate Affairs, Government of India. The Institute, being a proactive body, focuses on providing the best and top-quality education to students in the Company Secretaries Course and sets the highest standards for CS members. The Institute has over 78,000 members and around 2.5 lakh students on its rolls.

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