Green ventures should not be governance greenhorns

The Gensol and BluSmart fiasco illustrates why good corporate governance is crucial for climate action

- SRINATH SRIDHARAN

The controversy over solar-power company Gensol and its allied electric cab service BluSmart has ignited a debate about the future of green businesses in India. At first glance, it may seem like a cautionary tale about the risks of green startups. However, what has unfolded isn't a failure of the green economy or its sustainable vision. Instead, a probe by India's securities market regulator revealed misconduct by Gensol's promoters, with allegations of funds misused for personal luxuries and investors and rating agencies being misled. This is a story of how greed and poor governance can tarnish even the most lofty vision statements.

Vision without governance is like a seed without soil: it may sprout, but won't thrive. Green businesses hold enormous potential, but risks like weak governance remain a challenge. The Gensol saga highlights how easily the failings of a few can stain an entire sector. BluSmart may have pioneered clean ride-hailing in India, but the scandal has cast doubts on the credibility of our green space.

Green finance isn't about feel-good funding; it's about fuelling a shift towards sustainable economic growth. The collapse of a few companies shouldn't make us question the entire movement. It's not about the 'colour' of the funding, so to speak, but the integrity of those managing it.