ESG Data & Solutions: Driving Accountability in the Next Frontier of Global Business
What happens when a 28-year veteran of the financial services industry, who has seen the rise of computers and the global financial crisis, decides to turn entrepreneur at age 50? For Ramnath Iyer, it was a "midlife crisis" that turned into a mission to solve one of the most critical challenges of our time: Corporate Accountability in the age of climate change and Environmental, Social, and Governance (ESG) standards.
As the Co-founder of ESG Data & Solutions (ESGDS), Iyer is leveraging his deep expertise from CRISIL and MSCI to build a 30-year story focused on responsibility. By combining high-end analytics with India's unparalleled IT and data capabilities, ESGDS is ensuring that the growth engines of Asia—particularly India—are evaluated fairly and responsibly on the global stage.
The Two Big Drivers of the Next Decades
1. Artificial Intelligence: A shift from programmed computers to "Outcome-based AI" where we tell the computer the task we want to achieve, not the steps to get there.
2. Responsibility: A fundamental change in both consumption and investment. Organizations are no longer just expected to be profitable; they are required to be accountable to the Environment (E), Society (S), and Stakeholders (Governance - G).
The Anatomy of Responsibility: Understanding ESG
For many, "ESG" is just another corporate buzzword. But Iyer breaks it down into simple, actionable accountability. It's about personal responsibility—like segregating garbage at home—translated to an organizational scale.
"Organizations are now required to say that I will behave more responsibly to the environment... the society... and the stakeholders," Iyer explains. This accountability is driven by two main forces: Regulators (like SEBI in India with its BRSR framework) and the Sources of Funds (shareholders and banks) who are increasingly asking difficult questions about a company's impact.
ESGDS acts as the analytical bridge for these stakeholders. Whether it's an equity investor looking at long-term risk or a bank assessing creditworthiness, Iyer's platform provides the data-driven answers they need to make responsible financial decisions.
"Every human is supported by technology, and a combination of human and technology helps us meet quality and price point levels which are typically unparalleled in the industry."
Why India? The Triple Alignment of Opportunity
Iyer's decision to launch ESGDS was driven by three critical stars aligning in the Indian ecosystem:
- Growth Engine: Asia, specifically the APAC region, is the world's growth engine. However, many Asian companies aren't large-cap or part of world indexes, meaning their environmental impact isn't being assessed correctly.
- Proactive Regulation: While the US still debates mandatory disclosures, Indian regulators like SEBI have already mandated ESG reporting. India is a developing country with a "developed" regulatory mindset.
- The World's Data Factory: India is the global hub for IT and data analytics. "Only if India can't fulfill that need do you see offices getting opened elsewhere like Poland or Hungary," says Iyer.
The Pandemic Pivot: Turning Isolation into Ideation
Ramnath Iyer had been ideating about entrepreneurship since 2000, but market crashes and the global financial crisis kept his plans shelved. It wasn't until 2020—the year he turned 50—that the pandemic provided the perfect "focus time" to finally launch. "Either you do it now, or you don't do it for the rest of your life," he reflected.
The pandemic removed the stress of global travel and commuting, allowing him to focus on the structure of ESGDS. More importantly, it created a pool of talent who, like him, were ready to quit corporate life and chase their dreams. "It was not really my idea; it was the team's belief in the idea that helped me take the leap of faith," Iyer admits.
ESGDS: A Truly Distributed Global Factory
- Team Footprint: Members across Gurgaon, Jharkhand, Lucknow, Mumbai, Mangalore, Chennai, Rajahmundry, and Coimbatore.
- Mangalore Hub: Over 200 experts driving high-end data operations.
- Global Client Base: Serving the US and Europe through purely remote, high-tech communication.
- Engagement Scale: Typical engagements starting at ₹35-50 lakhs, reflecting the deep domain expertise provided.
Lessons from a "Geriatric" Entrepreneur
Transitioning from a 28-year corporate career to a startup founder taught Iyer several hard-won lessons that every budding entrepreneur should heed:
Caution on Capital: The "String" Theory
Iyer warns against the temptation of early, high-valuation funding. "Every check comes with strings," he says. If you take funds at valuations you can't realistically achieve, it limits your flexibility and can even lead to governance issues as you're forced to meet arbitrary numbers.
Obsession with Profits
There is no substitute for profitability. "At no point in time will you have cash flows match your requirements... but the end of the year, the profitability has to be robust." For a B2B company, Iyer believes being profitable from Day 1 is not just a goal, but a necessity for survival.
Zero Ego: Starting from Negative
Forget the corporate secretary and the corner office. Iyer notes that as an entrepreneur, you start from zero—or even negative. "You will have to do things like deliver parcels... fetch your own printouts... schedule your own meetings. Forget about what you have been."
The Joy of the 30-Year Story
For Ramnath Iyer, entrepreneurship is the passion of translating a vision into reality. It's about seeing something different from what's normally acceptable and having the "gumption" to build it. While he carries more liabilities as an entrepreneur than he ever did as an employee, the joy of building something from scratch and seeing his team flourish is incomparable.
"The joy of entrepreneurship is different. You answer to yourself... you actually see wealth getting created," he concludes. As ESGDS continues to shape the future of financial analytics, it stands as a testament to the fact that it's never too late to be responsible—and it's never too late to start.
About the Guest
Ramnath Iyer is the Co-founder of ESG Data & Solutions (ESGDS). A self-described "geriatric" of the financial industry, he has over 28 years of experience in financial services and technology. He began his career as an analyst at CRISIL, building financial models and advising governments globally on infrastructure investments. He later served as the Global Operations Head for Index, Real Estate, and ESG at MSCI. An expert in financial analytics and corporate governance, Ramnath is now using his decades of experience to drive the next frontier of business solutions through data-driven accountability.
ESG Data & Solutions (ESGDS) is a fintech platform that provides high-end analytics and data solutions for ESG (Environmental, Social, and Governance) assessments. By combining domain expertise with advanced technology, ESGDS helps institutional investors, banks, and regulators evaluate the responsibility practices of organizations, particularly in the growing markets of Asia. The company is committed to ensuring that global growth happens responsibly and accountably.