AIFs must lead ESG push in unlisted firms, says Sebi's Ruchi Chojer

Sebi executive director says AIFs must align with global ESG norms as 40 per cent of capital comes from foreign investors expecting high disclosure standards

Alternate investment funds (AIFs) must play a key role in driving environmental, social, and governance (ESG) adoption among unlisted investee companies, said Ruchi Chojer, Executive Director at the Securities and Exchange Board of India (Sebi).

 

Chojer was speaking at a fireside chat organised by the Indian Venture and Alternate Capital Association (IVCA) as part of its Renewable Energy Summit 2025.

 

She said 40 per cent of AIF capital comes from foreign investors who expect alignment with global disclosure standards and added that the regulator is open to proposals for ESG-labelled AIF categories. 

 

 

‘India will need an estimated $250 billion by 2030 to finance renewable energy, storage, and transmission. Sebi remains committed to enabling this transformation by providing regulatory clarity, reducing policy risk, and supporting innovative investment structures. Our goal is to ensure that India’s capital markets continue to serve not just as engines of growth but also as platforms for building a sustainable, future-ready economy,’ Chojer said.

 

Underlining Sebi’s efforts, she noted that the Business Responsibility and Sustainability Reporting (BRSR) framework has elevated ESG disclosures in India to the level of financial reporting—making them assured, consistent, and decision-useful.

 

‘Over 1,000 companies now follow BRSR, many beyond the mandated list. Sebi is also the first regulator globally to bring ESG rating providers under a transparent regulatory framework,’ she said.