Why is LIC not part of India’s energy transition story?

Restrictive regulations and the lack of an ESG strategy have largely kept India’s biggest investor away from green investments.

India’s frantic quest for climate finance may have a solution sitting right at home—in the form of state-owned Life Insurance Corporation.

Not only is LIC an insurance behemoth, it is also the country’s largest investor, boasting of a bigger pool of capital than some small nations. Yet, regulatory curbs on how it can use those funds and the absence of an investment policy that incorporates environmental, social and governance criteria means that the life insurer’s involvement in India’s energy transition has been limited so far.

LIC’s total investments were worth Rs 43.9 lakh crore as of 31 March 2023. To …

Author

Azman Usmani

Azman writes on climate change, ESG, and how a warming world impacts businesses and people alike. Prior to The Morning Context, he led climate coverage at BloombergQuint, where he started his career as a desk writer.

Writer

azman@mailtmc.com

Mumbai