The study further highlights that Indian investors are more likely to trust in-house proprietary data systems and audited (or assured) corporate disclosures for sustainability analysis. However, as compared with global investors, Indian investors are less likely to rely on external data sources and ratings.

Viral Thakker, Partner and Sustainability & Climate Leader, Deloitte South Asia, said, “While the focus on sustainable investing is commendable, the lack of access to trustworthy data remains a significant hurdle for Indian investors. There is a critical need for improved reporting standards to build investor confidence and facilitate informed decision-making.

About 41 per cent of Indian investors cite regulatory requirements as the top driver for incorporating sustainability factors into investment decisions, closely followed by the pursuit of improved social and environmental outcomes (36 per cent each). This contrasts with global benchmarks, where investors prioritise financial performance and risk diversification.

The increasing awareness of climate change, social issues and corporate governance standards has led to more pressure on investors from their clients.

Nearly 40 per cent of investors experience pressure, with about 15 per cent feeling extensive pressure to integrate ESG strategies into their investment decisions due to demands from clients and asset managers. This client-driven demand highlights the significant influence of external expectations on incorporating ESG factors in investment strategies.

“Building and maintaining trust with investors is vital for corporations to stay competitive, grow market value, and gain access to capital. Trust can be built through actions that demonstrate a high degree of competence and positive intent. Our study highlights a significant gap in ESG data reliability, challenging investors who seek to incorporate sustainability into their decisions.

“To bridge this gap and foster greater trust, organisations must reliably deliver on their sustainability commitments and enhance transparency through standardised reporting and robust data verification. By doing so, we can empower Indian investors to make more informed and impactful sustainability investments, ultimately driving positive social and environmental change,” said Shabana Hakim, Executive Director, Deloitte India.

The survey shows about 80 per cent of Indian investors have implemented sustainability policies. Of these, 14 per cent have had a policy in place for more than five years and 58 per cent have had a policy for over two years.

First Published: Aug 15 2024 | 10:04 AM IST