Indian business focus more on ESG reporting and compliance than peers globally, reveals report

Not only did the way how business functions but their focal point too shifted post-COVID. As per a global study titled ‘Pivotal: How treasury and finance enable a new era of globalisation’ conducted by DBS Bank, the top three priorities for the next two years for Indian businesses include securing new skills and talent, improving productivity and operational performance, business diversification through innovation, financing and exploring new market channel.

Notedly, the study reveals the strategic priorities along with the potential challenges for businesses in the era of globalisation. It is conducted through a survey of over 570 senior executives from 15 countries including India. 

The study reveals that 78 per cent of businesses in the upcoming couple of years will give precedence to securing new skills and talent while 76 per cent will focus on improving productivity and operational performance. In addition to this, 72 per cent of the business said that they will be committed to business diversification through innovation, financing, and exploring new market channels.

Rajat Verma, Managing Director and Head of Institutional Banking, DBS Bank India, said, “Amidst global headwinds, there are emerging opportunities for companies to benefit from the shift towards Asia by harnessing the power of innovation and data-driven decision making. The new study reveals how the role of Treasury has been evolving strategically within this paradigm to drive business results, unlock value and manage risk.”

What does business in India focus on?

When examining insights from the subcontinent, it was seen that Indian businesses are more likely than their regional peers to be engaged in ESG reporting and compliance as it is 65 per cent in India, compared with 62 per cent in Singapore, 53 per cent in Hong Kong and 41 per cent in China. This aligns with the increase in stringency and rigour required from mandatory reporting and disclosure norms in the country. 

Another interesting aspect that emerged was that one of the biggest considerations for Indian companies deciding where to locate their treasury and finance functions was the presence of a diverse talent pool, with 84 per cent of organisations citing it as a critical factor, compared to a global average of 70 per cent. A stable political environment and robust financial ecosystem, aspects that are very reliable in India, also rank high on this list of location influencers, each factor cited by 72 per cent of businesses in India.

Moreover, 42 per cent of Indian executives as compared to the global average of 27 per cent perceive the emergence of new market entrants as a key barrier, hampering business growth. Access to capital, and growing regionalisation and nationalism are also fundamental concerns. Despite these challenges, Indian enterprises are actively pursuing global expansion, with treasury and finance departments playing an increasingly central role. These functions are driving decisions, with 92 per cent of treasury and finance teams engaged in corporate strategy and 88 per cent of these teams in Indian businesses closely involved in procurement and supply chain management, vital functions in the current trade landscape.