Environmental, Social And Governance (ESG) Compliance In India: Emerging Trends And The Evolving Corporate Regulatory Framework
- IJLLR Journal
- Jun 21
- 1 min read
Prof. (Dr.) Gowri Ramesh, Registrar, The Tamil Nadu Dr. Ambedkar Law University & Director of Legal Studies (FAC), Government of Tamil Nadu.
Dr. E. Ramya, Assistant Professor, Chennai Dr. Ambedkar Govt. Law College, Pudupakkam
ABSTRACT
The growing emphasis on sustainability and responsible business conduct has transformed Environmental, Social and Governance (ESG) principles into a significant aspect of corporate regulation worldwide. In India, ESG compliance has evolved from voluntary corporate social responsibility initiatives to a more structured regulatory framework guided by legislative mandates and market-driven expectations. Regulatory interventions by the Securities and Exchange Board of India (SEBI), particularly through the Business Responsibility and Sustainability Reporting (BRSR) framework, have strengthened disclosure requirements and enhanced corporate accountability. This article examines the concept and significance of ESG compliance within the corporate sector in India. It analyses the existing legal and regulatory framework governing ESG practices, including provisions under the Companies Act, 2013, SEBI regulations and other relevant guidelines. The article further explores emerging trends such as enhanced sustainability disclosures, climate-related reporting, stakeholder-centric governance and the influence of global ESG standards. It critically evaluates the challenges associated with ESG implementation, including regulatory fragmentation, greenwashing concerns, lack of standardised metrics and compliance burdens faced by companies. Also examines the comparative perspectives and recent developments, this paper proposes recommendations to strengthen ESG ecosystem in India and promote sustainable corporate governance. The study concludes that a coherent and strong ESG framework is indispensable for balancing economic growth with environmental stewardship and social responsibility in the contemporary corporate sector.
Keywords: ESG Compliance, Corporate Governance, Sustainability Reporting, SEBI, Sustainable Development.
