Ultratech Cement: Transparent Governance as a Key Differentiator in the Global ESG Landscape

The global market, particularly in Europe and North America, has surpassed $40 trillion in assets under management (AUM) within ESG (Environmental, Social, and Governance) investing. In contrast, India’s ESG market, currently under $3 billion, is poised for significant growth. This potential can be realized if organizations commit to cultural upliftment, which clearly defines micro-level KPI management across the value chain, encompassing financial, social, and environmental goals.

Ultratech Cement's recent achievement of securing $500 million in funding from elite institutions during its second round of financing is a testament to its strong governance practices. This comes less than four years after the company issued dollar-based sustainability bonds, listed on the Singapore Stock Exchange, making it the first company in Asia to do so under Section 144A/Reg S—an issuance that was oversubscribed seven times.

Ultratech's consistent approach to transparent governance, starting with the GRI standards in 2005 and progressing through BRR/BRSR, CDP, and TCFD, culminating in the publication of its integrated report, has significantly bolstered investor confidence.

Building stakeholder confidence, which paves the way for investments, is increasingly becoming a process-driven effort globally. ESG is set to play a pivotal role in this shift. Organizations that recognize the need for a cultural change in governance, rather than merely viewing ESG as a compliance requirement or a report filled by the CFO, will reap substantial benefits.