Legal Framework For ESG Disclosures In Indian Capital Markets
- IJLLR Journal
- Feb 3
- 1 min read
Karthikeyan D, Presidency University Bengaluru
ABSTRACT
In recent years, Environmental, Social, and Governance (ESG) considerations have emerged as a critical factor in shaping corporate responsibility and investor decision-making across global capital markets. In India, the push towards sustainable business practices has led to the evolution of a structured legal and regulatory framework for ESG disclosures. This research paper examines the existing legal landscape governing ESG reporting in India, focusing on the role of the Securities and Exchange Board of India (SEBI) through the Business Responsibility and Sustainability Report (BRSR) framework, the Companies Act, 2013, and the Listing Obligations and Disclosure Requirements (LODR) Regulations.
The paper provides an analysis of how ESG disclosures are being mandated for listed entities, the transition from voluntary guidelines to mandatory compliance, and the integration of National Guidelines on Responsible Business Conduct (NGRBC). It further compares India’s ESG disclosure framework with international practices such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and the US SEC’s proposed climate disclosure rules.
The paper concludes by suggesting reforms for strengthening India’s ESG disclosure regime, including harmonisation with global standards, independent assurance of ESG data, and enhanced investor education. By providing a comprehensive legal and regulatory perspective, the study underscores the role of ESG disclosures in fostering transparency, accountability, and sustainable growth in the Indian capital markets.
