Corporate Climate Accountability In India: Legal Gaps In ESG Reporting And Carbon Risk Disclosure
- IJLLR Journal
- 7 days ago
- 1 min read
Ms. Jopsy Elsa George, LL.M. (Corporate and Commercial Laws), School of Law, Christ (Deemed to be University), Bengaluru, India
ABSTRACT
Corporate climate accountability in India remains hampered by fragmented legal frameworks, particularly in environmental, social, and governance reporting and carbon risk disclosure. This paper examines the evolution of the Securities and Exchange Board of India's Business Responsibility and Sustainability Reporting framework, introduced in May 2021 and refined with BRSR Core in July 2023, which mandates disclosures for the top 1,000 listed entities on emissions, energy use, and governance. Despite these advances, significant gaps persist, including the lack of statutory penalties for non-compliance, inadequate Scope 3 emissions coverage, and insufficient third-party assurance, fostering greenwashing and undermining investor confidence. Drawing on judicial precedents like M.C. Mehta v. Union of India, the analysis highlights the need for harmonized legislation integrating Companies Act provisions with robust enforcement to align India with global standards such as the Task Force on Climate-related Financial Disclosures. Ultimately, bridging these gaps is essential for a genuine corporate transition to low-carbon operations and achieving India's Net-Zero Commitment by 2070.
Keywords: ESG reporting, carbon disclosure, BRSR, greenwashing, climate accountability, SEBI regulations
