ANNOUNCEMENTS
Considering the growing importance of Environmental, Social, and Governance (ESG) reporting for evaluating a company's impact on the environment and society, alongside its financial performance, this study delves into the reporting of ESG practices in India's steel, oil refinery, and cement sectors by assessing the same for the top two companies by market share in these sectors. ESG factors are now critical considerations for investors, stakeholders, and policymakers, offering insights into a company's long-term sustainability and resilience. It helps investors make well-informed decisions for sustainable investing in companies while encouraging companies to adopt sustainable business practices to manage their impact on the environment and climate change.
The methodology involved understanding ESG reporting frameworks and indicators under each pillar of ESG and selecting the most relevant indicators for the study. Data on selected indicators was gathered from various company reports, providing a snapshot of their ESG performance. This was followed by a comparative analysis that was conducted to assess the companies' relative investability based on their ESG performance, using statistical methods in MS Excel. The analysis aimed to identify trends, strengths, and weaknesses in their ESG practices.
The study covered the fiscal years 2021-22 and 2022-23 to assess year-on-year progress. In total, six companies were analysed, including Tata Steel and Jindal Steel in the steel sector, IOCL and HPCL in the oil refinery sector, and Ambuja and Ultratech in the cement sector. ESG scores were assigned to each, presenting their comparative investability. This comparative analysis offers valuable insights into how companies in these industries are reporting on ESG practices and their overall sustainability performance.
Keywords: ESG reporting, Sustainable investing, Climate Change, Steel sector, Oil refinery sector, Cement sector.
