Insights from Jaya Vaidhyanathan, CEO of BCT Digital, on Using Technology to Promote ESG Practices

Exploring BCT Digital’s ESG Offerings and the Importance of ESG Accountability in Today’s Business Landscape

As Earth Day approaches, there is growing awareness of the importance of ESG (Environmental, Social, and Governance) practices in the corporate world. BCT Digital, the FinTech division of Bahwan CyberTek, has been at the forefront of providing solutions for corporates to understand, measure, and manage ESG risks. We are delighted to have the opportunity to interview Jaya Vaidhyanathan, CEO of BCT Digital, who has over two decades of experience in the banking and technology sector in India.

Prior to joining BCT Digital, Jaya held leadership positions at companies like Accenture, HCL, and Standard Chartered Bank, where she spearheaded functions like Financial Services, M&A, Risk Management, Outsourcing Advisory, and Technology. Under her leadership, BCT Digital has rolled out offerings that have enabled banks and financial institutions to quantify their COVID-related recovery and get a head start on their future roadmap and strategy.

What are the emerging trends and regulatory environment surrounding the rising prominence of the ESG (Environmental, Social, and Governance) scenario in India, and what is the way forward?

ESG (Environmental, Social, and Governance) has gained increasing prominence in India as companies realize the importance of incorporating sustainability into their business strategy and practices. Some emerging trends include renewable energy adoption, the movement to net zero, green financing, board oversight and overall stakeholder engagement.

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The regulatory environment is also evolving, with the Securities and Exchange Board of India (SEBI) issuing guidelines on ESG reporting making Business Responsibility and Sustainable Reporting (BRSR) mandatory for the top 1000 listed companies and the Reserve Bank of India planning regulatory guidelines on climate risk and sustainable finance areas. Going forward, it will be important for companies to integrate ESG considerations into their strategy to achieve long-term sustainability and resilience.

How can corporates and businesses contribute towards the sustainable future of the planet?

Corporates and businesses can contribute towards a sustainable future by having a balanced focus on all the 3 pillars; Environmental – adopt environmentally friendly practices, Social – promote social responsibility, and Governance – have robust governance.

This can include reducing carbon emissions, using renewable energy sources, improving supply chain transparency, investing in employee training and development, and promoting equity, diversity, and inclusion in the workplace. By prioritizing sustainability, businesses can not only reduce their environmental impact on the planet but also gain the confidence of stakeholders and investors.

What are the positive implications of SEBI’s push for ESG accountability, and how can we understand this push in India?

SEBI has taken several measures to promote ESG practices with corporates in India. I would like to mention some of these include:

ESG Reporting: SEBI introduced the Business Responsibility and Sustainability Reporting (BRSR) framework in 2021, which requires the top 1000 listed companies to disclose their performance against the nine principles of the ‘National Guidelines on Responsible Business Conduct’(NGRBCs)and reporting under each principle is divided into essential and leading indicators.

ESG Ratings: SEBI has proposed to the ESG Rating Providers (ERPs) to consider India / Emerging Market parameters in ESG Ratings considering that the emerging markets have a different set of environmental and social challenges. Also, SEBI has proposed to establish a regulatory framework for Environmental, Social and Governance (ESG) Rating Providers) in the Indian securities market to enhance the transparency in ESG rating rationales.

ESG Investing: SEBI has also introduced guidelines for ESG funds to address the risk of miss-selling and greenwashing. These include mandating ESG schemes to invest at least 65% of AUM in listed entities, where assurance on BRSR Core is undertaken amongst some of the other measures.

These measures have created a positive impact on the listed companies and over the period, this should be extended across the board.

What is BCT Digital’s ESG offering, and how does it enable corporates to understand, measure, and manage ESG risks?

Built on the market-leading rt360 Risk Management Suite, BCT Digital’s rt360 Environmental, Social, and Governance (ESG) management solution helps the business align its strategic and financial objectives with your overarching ESG program. It is designed to help investors understand, measure, and manage ESG risks. rt360 ESG enables a centralized and streamlined approach to managing ESG-related risks, reporting standards, frameworks, and requirements. It allows businesses to assess compliance, define key metrics and automate end-to-end ESG-related processes.

How is BCT Digital utilizing technology in helping organizations stay ESG-compliant and achieve sustainable growth?

BCT Digital utilizes technology to help organizations stay ESG-compliant and achieve sustainable growth. The platform provides data-driven insights and analytics to help businesses make informed decisions related to ESG factors. This can include identifying potential ESG-related risks, performing risk assessments, monitoring ESG performance, and implementing sustainability initiatives. By incorporating bots and AI/ML, BCT Digital can help businesses automate the data capture and use pre-built models and algorithms to provide analytics on ESG-related metrics.

(Copy Right @ India CSR)