Standard & Poor’s, Credit Rating And Information Services of India and KLD Research & Analytics, a social and environmental research firm, have launched the S&P ESG India Index, the first investable index of companies whose business strategies and performance demonstrate a high level of commitment to meeting environmental, social and governance – ESG - standards. The index provides investors with an instrument to incorporate sustainability measures into their investment decisions and, it is hoped, will provide a model for the launch of similar indices in other emerging markets. Initiated and sponsored by the International Finance Corporation, a member of the World Bank group, the index comprises 50 Indian companies that meet certain ESG criteria and have been drawn from the largest 500 companies listed on the National Stock Exchange of India. Dr Subir Gokarn, chief economist, Standard & Poor’s Asia Pacific, said: “As the private sector becomes more important in the growth and development of emerging economies, the profit motive needs to be brought into alignment with public interest. The scope of regulation, though critical, is limited without a commitment by investors to reward strategic behaviour that creates long-term value by balancing the interests of all stakeholders.” Dr Gokarn has been associated with the project from its inception, including in his earlier capacity as chief economist at CRISIL. The S&P ESG India Index will be maintained by India Index Services, a joint venture between CRISIL and the National Stock Exchange of India, which also manages the flagship S&P CNX NIFTY index of India’s largest and most liquid companies.