Help Clients Achieve Their ESG Goals (SPC NXT)
Business OpportunitiesApril 26, 2022 - SPC NXT
This is a thought leadership article on how PrimeGlobal member firm SPC NXT is helping its clients fulfil their Environmental, Social, and Governance (ESG) strategies in India.
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The importance of ESG has gained prominence in India over the past decade. By way of example, in 2012, the Securities and Exchange Board of India (SEBI) mandated the top 100 listed companies by market capitalization to file a Business Responsibility Report (BRR) based on National Voluntary Guidelines (NVGs) alongside their annual reports. In 2015, this requirement was extended to the top 500 listed companies by market capitalization and more recently, in 2019, the SEBI mandated the top 1000 listed companies to file BRRs. In 2021, the SEBI re-characterized BRR as Business Responsibility and Sustainability Report (BRSR), which requires listed entities to disclose their performance against the nine principles of the National Guidelines on Responsible Business Conduct (NGBRC).
How SPC NXT helps its clients achieve their ESG goals
It is in this context, that SPC NXT has developed ESG teams and services to assist clients with their ESG programs. Its ESG services are divided into two categories: ESG due diligence and ESY advisory.
On the due diligence front, SPC NXT has built a team of subject matter experts and industry experts who are supported by professionals comprising Chartered Accountants, Chartered Financial Analysts, and Master of Business Administration (MBA) professionals as well as corporate law firms, sustainability consultants and environmental engineers. The scope of its due diligence exercises is three-pronged:
- Environmental health and safety – which includes reviewing sourcing strategies, environmental risk management, and evaluating performance against standards.
- Social – which covers areas such as employee benefits/welfare, preventing of sexual harassment, abuse, and child labor, and reviewing Corporate Social Responsibility (CSR) policies.
- Governance – which involves the likes of reviewing whistleblower policies and vigil mechanisms, reviewing emergency response and disaster recovery plans, and evaluating frameworks for risk management and compliance management.
SPC NXT adopts a four-stage approach to due diligence:
- Initiation and conception – this involves understanding the objectives and nature of the business, discussing the scope of the work and getting a broader understanding of the activities of the target.
- Planning – this covers project planning and kick-off, establishing a team, and preparing and disseminating information request lists and questionnaires.
- Execution – this stage involves reviewing the information collected, inspecting the facility, and identifying significant ESG issues or observations.
- Reporting – the final stage is concerned with preparing a draft key issues report and discussing it with the client before submitting the final report.
When it comes to its ESG advisory services, SPC NXT provides clients with global compliance and sustainability expertise to review and develop their ESG programs based on best practices, current regulatory requirements, and robust oversight processes.
Its support services cover the following areas:
- Program management – this covers everything from net-zero management and carbon footprinting to marketing and disclosure reviews.
- Portfolio oversight – this includes annual portfolio carbon footprinting and annual portfolio climate risk analyses.
- ESG assurance – this looks at annual ESG compliance reviews, disclosure verification, and portfolio testing, amongst other things.
Set up in 1949, SPC NXT is based in India and North America and has been in the business of Accounting, Taxation, Consulting and Outsourcing for over 70 years. SPC NXT is a technology-led multi-disciplinary group with a wide range of staff experience, from reverent young minds to industry veterans and experienced professionals. The firm provides high- impact and cost-effective solutions to global businesses working with Fortune 500 companies.Learn more