ESG Compliance And Corporate Accountability In India: A Critical Analysis Of Legal And Regulatory Frameworks
- IJLLR Journal
- 3 days ago
- 2 min read
Dr. Dushyant Kumar, Associate Professor, Faculty of Law, Madhav University, Pindwara, Sirohi, Rajasthan, India.
ORCID ID: 0009-0001-5087-2662
ABSTRACT
Environmental, Social and Governance (ESG) compliance has become an integral component of modern corporate governance in India, significantly transforming the traditional understanding of corporate accountability. In earlier phases, corporate governance frameworks in India were largely confined to financial disclosures, regulatory adherence and the protection of shareholder interests. However, the growing impact of environmental degradation, increasing socio-economic inequalities and recurring corporate governance failures have compelled a shift toward a more comprehensive and responsible approach. ESG compliance reflects this transition by incorporating sustainability, ethical practices, and stakeholder engagement into corporate decision-making processes.
This research paper undertakes a critical examination of ESG compliance within the Indian context by analyzing key legislative provisions, regulatory frameworks and judicial interventions. It focuses on the role of statutes such as the Companies Act, 2013 along with regulatory initiatives like the Business Responsibility and Sustainability Reporting (BRSR) framework introduced by the Securities and Exchange Board of India. The study further highlights the proactive role of the judiciary, particularly the Supreme Court of India, in expanding corporate accountability through constitutional interpretation and
environmental jurisprudence, thereby embedding ESG principles within the legal framework.
Despite notable advancements, the implementation of ESG norms in India continues to face significant challenges, including fragmented regulatory structures, limited enforcement capacity and the growing concern of green washing. These issues create obstacles to achieving genuine and consistent compliance across industries.
The paper argues for the development of a more integrated and coherent ESG framework supported by stronger enforcement mechanisms and alignment with global standards. It concludes that ESG compliance in India is gradually evolving from a voluntary or policy-driven initiative into a binding legal and strategic imperative, essential for sustainable economic growth and long- term corporate legitimacy.
Keywords: ESG Compliance, Corporate Governance, Sustainability, Corporate Accountability, Environmental Law.
