The framework is aimed to encourage Indian cities to become ESG-ready and create an enabling environment for investors in the country
PwC India has introduced a comprehensive framework for the Environmental, Social, and Governance (ESG) assessment of cities in collaboration with the Centre for Water and Sanitation (CWAS) and the CEPT Research & Development Foundation (CRDF) at CEPT University. The initiative aims to promote ESG readiness among Indian cities and foster an investor-friendly environment in the country.
The framework comprises 62 indicators covering global development goals, national commitments, and municipal functions mandated to local governments. It categorises cities into different stages, starting with 'Initiators' that express intent to take actions on ESG fronts, progressing to 'Aspirant,' 'Performer,' and ultimately 'Achiever' based on their scores.
Meera Mehta, Head of CWAS-CRDF-CEPT University, highlighted the importance of ESG for cities in raising their own funds in the market. The framework not only helps build credentials with investors but also creates awareness about how cities respond to government programmes related to environmental, social, and governance issues.
Nidish Nair, Executive Director, Climate Resilience and Cities at PwC India, emphasised that the framework provides granular, city-specific insights for improvement in ESG aspects. The CWAS and PwC teams will support cities in deepening their assessments, ensuring better allocation of resources, and becoming integral to their investment programmes.
The framework has already been applied to 20 cities, including Ranchi, Nagpur, Pune, Karimnagar, Ahmedabad, Surat, Nashik, and Solapur, for demonstration purposes. Initial findings reveal that these cities performed well on the 'Social' pillar, attributed to recent government welfare programmes.
However, there is mixed performance on the 'Governance' pillar, with improving accountability in urban local bodies but unsatisfactory fiscal health. The 'Environmental' pillar shows significant room for improvement, with low scores on water resource management, commute systems, and green ecosystem indicators, despite positive policy interventions for sustainable development.