Sustainability Is Not a Sideshow

For Anvitha Prashanth and Pranav Prashanth, Partners at Perpetual Capital, impact investing is not a trend riding the ESG wave. It is embedded in the way they deploy capital. “We are an early-stage fund, looking at pre-seed, pre-Series A companies,” says Pranav. “Impact really plays a key role in our thesis. That’s why we felt we were very well aligned with the Perpetual Capital Hurun India Impact 50.”

Anvitha adds context to that positioning. “We are essentially a family office that focuses on long-term, conviction-driven investing. Impact is a large part of our portfolio. Even otherwise, when a consumer business comes into the room, we do look at sustainability. This aligns very well with where we would like to go.”

For them, the report is not aspirational. It validates a belief they have held from day one, that India’s growth story does not have to mirror the excesses of older industrial economies.

“The best part of this list is to see top listed companies really taking ESG seriously and working towards SDGs,” says Anvitha. “Sustainability is a top-down approach, not a bottom-up one. To see these companies lead by example shows that as India Inc. grows, we can grow sustainably. We don’t have to grow the way other nations have, where carbon emissions per capita went out of control. India can grow sustainably.”

Commenting on why the shift is happening, Anvitha says, the shift towards visible sustainability commitments is being driven by two clear forces. “One is external compliance, whether it’s domestic regulations or requirements from Nordic, European or American markets where companies are sourcing from or raising capital. The second is the consumer-level push,” she explains.

She points to a structural reality. “A lot of consumption in India happens in the top 20% of the country. Eighty percent doesn’t have that level of disposable income. So if that top 20% becomes more conscientious, it automatically pushes companies they consume from to take this into account.”

Pranav sees it reflected on the ground. “We are seeing more companies really care for their stakeholders, the local communities impacted by operations or those benefiting from employment and schooling. This is very positive work. India Inc. is looking very positive.”

Interestingly, the Impact 50 does not alter their investment philosophy, it reinforces it. “For us, it’s a bit different because it’s always been part of the thesis,” says Pranav. “We think India is going to grow in a sustainable fashion. That’s why we have been investing in this pipeline. We are also seeing larger VC firms looking at ESG as a core practice pattern. So for us, having ESG as a strong foundation helps throughout the capital-raising chain.” In other words, sustainability is no longer peripheral. It improves fundability.

One of the most unexpected findings for Pranav came from a traditionally high-impact sector. “I was really surprised by the mining industry. Seven companies are on the list, which is the highest representation. It shows they are making an active effort to update and offset the by-products of their operations. That was a very cool factor to see.”

Anvitha had a geographic takeaway. “I was surprised by the number of companies from Bangalore and Mumbai. We assume sustainability-led businesses are concentrated in certain startup hubs, but the scale of participation from both cities was huge.”

But the biggest proof point, they say, lies in performance metrics. “One of the highlights for me was Persistent Systems reaching carbon neutrality. For a company of that size, while still delivering shareholder growth and revenue, it shows you can scale and still remain carbon neutral. They are setting an example,” says Pranav.

He also points to JSW. “They have 102% water renewable usage, which means they are actually giving back 2% into the local ecosystem. Seeing big companies like JSW and Persistent Systems demonstrate that growth and profits don’t have to clash with sustainability was a big takeaway for me.”

For Perpetual Capital, the real shift is not about CSR optics but structural change. When sustainability becomes embedded at the top, when compliance converges with consumer demand, and when capital rewards responsible scaling, impact stops being a narrative device and becomes a business lever.

As Anvitha sums it up, “As India Inc. grows, we can grow sustainably.” For a country still writing its growth blueprint, that may be the most important takeaway of all.