ICSI proposes principle-based approach to address Climate Change

New Delhi, December 4, 2025: With the 30th edition of Conference of Parties (COP 30) concluding in Brazil, the pressing issue of Climate Change compelled the international community to take multilateral measures and brought forward new commitments and tools to unlock climate finance.
For business, it reaffirmed the importance of adopting a pragmatic approach inembedding Environmental, Social, and Governance (ESG) principles into corporate strategy from the ground up for long-term competitiveness.
As a leading statutory body proposing best practices in Corporate Governance, the Institute of Company Secretaries of India (ICSI), framed stewardship as the responsible management of assets and relationships for long-term value creation and introduced the ICSI Guiding Principles on Stewardship (IGPS).
The International Financial Services Centers Authority (IFSCA) has also recognized the IGPS, for adoption by the Fund Management Entities and Institutional Investors in the IFSCs, to safeguard the interests of clients, beneficiaries and society at large.
Placing long-term value and sustainable benefits at the core of stewardship practice and emphasizing on stewardship beyond compliance, the IGPSleveragesthe significant role of Investors and Stewards in promoting principle-based governance and sustainable development.
Institutional Investors and Fund Managerscanhelp organizations shift focus from Short-Term Gains to Long-Term Value Creation, by demandingan implementation of a robust ESG framework that can prioritize sustainable growth over quick returns.
To translate the principles into practice and facilitate effective engagement-strategy, this year the ICSI launched a Stakeholder Engagement Toolkit on ESGto supplement IGPS.This toolkit is aimed to assist and equip Company Secretaries and Boards in devising a comprehensive ESG policy for companies.
The ICSI has also introduced the ICSI Principles on Climate Change Governance (IPCG), this year, to enhance transparency in climate related disclosure. Aimed at guiding entities, the framework includes guidance on establishing metrics and targets to evaluate sustainability performance and progress toward climate goals.
Highlighting the preemptive approach of the ICSI, CS Dhananjay Shukla, President, the ICSI, said, “Integrating climate consideration into business frameworks require a cohesive methodologyofwell-crafted principles, detailed guidance on climate and sustainability matters and equipped professionals who can coherently translate it into reality. As a leading force in promoting best practices, the ICSI is offering it all, through its various initiatives.”
Echoing the sentiments, CS Asish Mohan, Secretary, the ICSI,said,“In a world where climate change is requiring corporations and nations, investors and investees, to act strategically, the Institute of Company Secretaries of India aims to utilize the significant pedestals occupied by these investors and stewards and promote principles-based governance to support sustainable development”.