New Delhi: PwC India, in collaboration with the Centre for Water and Sanitation (CWAS) and CEPT Research & Development Foundation (CRDF) at CEPT University, has introduced an Environmental, Social, and Governance (ESG) assessment framework for Indian cities.
The initiative aims to make cities ESG-ready and attract investors. It provides a comprehensive evaluation based on 62 indicators covering global development goals, national commitments, and municipal functions, according to the PwC India’s release.
According to the release, the ESG rating system categorises cities as ‘Initiators,’ based on their commitment and actions in the E, S, and G domains, followed by the ranks ‘Aspirants,’ ‘Performers,’ and ‘Achievers,’ as the score increases.
Meera Mehta, Head of CWAS-CRDF-CEPT University, highlighted the shift in infrastructure financing in India from public funds towards blended finance approaches and municipal and green bonds.
The framework encourages cities to raise funds independently in the market, emphasising the importance of ESG for both corporate financing and cities’ development efforts.
“The idea of ESG for cities is not just to build credentials with investors and regulators but to also create awareness on how cities themselves respond to existing government programmes for environment, social and governance issues,” Mehta said.
Nidish Nair, Executive Director Climate Resilience and Cities at PwC India, mentioned that the CWAS and PwC team will support cities in the assessment, offering granular insights to drive resource allocation effectively. PwC India has developed an interactive dashboard for cities and investors to explore specific focus areas, Nair said.
The framework has been applied to 20 pilot cities, including Ranchi, Nagpur, Pune, Karimnagar, Ahmedabad, Surat, Nashik, and Solapur. Initial findings show strong performance on the ‘Social’ pillar due to recent government welfare programs.
However, the ‘Governance’ pillar exhibits mixed performance, with urban local bodies demonstrating accountability but fiscal health needing improvement. The ‘Environmental’ pillar reveals opportunities for enhancement, particularly in water resource management, commute systems, and green ecosystems, despite positive policy interventions.
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