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LoanXpress Advances ESG Initiatives to Support Indian SMEs

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| July 5, 2024 4:11:36 PM IST
PNN

Mumbai (Maharashtra) [India], July 5: LoanXpress.com, a digital platform owned by Vermillion Finalytics, is dedicated to assisting small and mid-sized enterprises (SMEs) in India to secure debt capital from lenders. Recently, the platform has expanded its focus to the ESG (Environmental, Social, and Governance) research segment, responding to increasing concerns over climate change, regulatory demands, and evolving investor expectations.

Sowdamini Bhat, CEO of LoanXpress.com, said, "By embedding ESG principles into their strategies, companies can drive sustainability across their entire operations, from procurement to production to distribution. This holistic approach ensures that every step of the value chain aligns with sustainability goals, leading to more efficient resource use, reduced waste, and improved operational resilience. Companies are working closely with suppliers to ensure responsible sourcing practices, minimizing environmental impact and promoting fair labor practices."

ESG criteria, which include sustainability, ethical governance, and social responsibility, are gaining importance as global awareness of environmental and social issues rises. By integrating ESG principles into their operations, businesses can not only meet stakeholder expectations but also manage risks and capitalize on opportunities related to sustainability.

To achieve ESG success, raising awareness throughout the value chain is essential. Engaging all stakeholders, including employees, suppliers, and customers, about the importance of ESG is crucial. LoanXpress.com advocates for training programs, workshops, and collaborative platforms to share best practices and encourage the adoption of ESG principles.

Pratapsingh Nathani, Director of LoanXpress.com, said, "Environmental and social issues present both risks and opportunities for businesses. Companies face regulatory fines, reputational damage, and operational disruptions due to environmental violations or social irresponsibility. However, addressing these issues also offers opportunities for innovation, market differentiation, and competitive advantage. Proactively addressing environmental concerns can lead to the development of eco-friendly products and services that cater to the growing demand for sustainability."

Governments worldwide are fostering ESG practices through initiatives like ESG rating licenses and policy standardization. In India, the introduction of the Business Responsibility and Sustainability Reporting (BRSR) standards provides a comprehensive framework for companies to report their ESG performance. These standards enhance the transparency, accountability, and comparability of ESG disclosures, aiding investors and stakeholders in making informed decisions.

The rise of ESG has spurred the creation of innovative investment products such as green bonds. These debt instruments are earmarked for financing projects with positive environmental impacts, including renewable energy initiatives and sustainable infrastructure developments. Green bonds provide investors with opportunities to support environmentally friendly projects while earning returns.

Sowdamini Bhat added, "Impact investing emphasizes the dual objectives of financial return and social impact. It seeks to generate positive social and environmental outcomes alongside financial returns. Investors are increasingly looking for opportunities that align with their values and contribute to societal well-being. Sustainable investments can drive long-term value and resilience."

Integrating ESG principles into corporate strategies is a strategic imperative for building resilient, responsible, and future-ready businesses. By driving sustainability across supply chains, raising awareness, addressing environmental and social issues, leveraging government initiatives, embracing impact investing, and developing new financial products like green bonds, companies can create long-term value and contribute to a sustainable future.

Loan Xpress is a premier financial advisor specialized in raising working capital finance requirements, structured debt, trade finance and loan syndication for corporates, NBFCs and AIFs.

Their expertise allows an organization to focus on the core business strategy, leaving the stressful fundraising hassle on company's experienced team.

This company is founded by CEO of Beacon Trusteeship Pratapsingh Nathani under the leadership of Sowdamini Bhat and Kaustubh Kulkarni. Sowdamini heads LoanXpress as CEO and Kaustubh as Director.

Company profile - https://loanxpress.com/

(ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)

 
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