Environmental, Social and Governance (ESG) Disclosures: Legal Mandates for Indian Corporations and Enforcement Challenges
Abstract
The emergence of Environmental, Social and Governance (ESG) disclosures as a central pillar of corporate
accountability marks a fundamental reorientation in the relationship between business, society, and the state.
In India, where rapid economic expansion coexists with persistent social inequity and environmental
degradation, ESG disclosure frameworks are not merely voluntary codes but instruments of public policy
that seek to align private enterprise with sustainable development. This study critically examines the legal
mandates governing ESG reporting in India and analyses the enforcement challenges that arise from
fragmented regulation, capacity constraints, and normative ambiguity. It situates India’s evolving ESG
regime within global developments—such as the European Union’s Corporate Sustainability Reporting
Directive (CSRD), the United States Securities and Exchange Commission’s climate-risk disclosure
proposals, and the International Sustainability Standards Board (ISSB) standards—to highlight
convergence and divergence in regulatory philosophy.
Through doctrinal, policy, and comparative analysis, the paper argues that while India has made significant
strides through instruments like the Business Responsibility and Sustainability Report (BRSR) framework,
the Companies Act 2013, and Securities and Exchange Board of India (SEBI) regulations, its enforcement
ecosystem remains underdeveloped. The abstract concludes that achieving effective ESG compliance in India
requires transformation of corporate governance culture, institutional coordination among regulators, and
judicial recognition of sustainability as an extension of the constitutional right to life under Article 21.
accountability marks a fundamental reorientation in the relationship between business, society, and the state.
In India, where rapid economic expansion coexists with persistent social inequity and environmental
degradation, ESG disclosure frameworks are not merely voluntary codes but instruments of public policy
that seek to align private enterprise with sustainable development. This study critically examines the legal
mandates governing ESG reporting in India and analyses the enforcement challenges that arise from
fragmented regulation, capacity constraints, and normative ambiguity. It situates India’s evolving ESG
regime within global developments—such as the European Union’s Corporate Sustainability Reporting
Directive (CSRD), the United States Securities and Exchange Commission’s climate-risk disclosure
proposals, and the International Sustainability Standards Board (ISSB) standards—to highlight
convergence and divergence in regulatory philosophy.
Through doctrinal, policy, and comparative analysis, the paper argues that while India has made significant
strides through instruments like the Business Responsibility and Sustainability Report (BRSR) framework,
the Companies Act 2013, and Securities and Exchange Board of India (SEBI) regulations, its enforcement
ecosystem remains underdeveloped. The abstract concludes that achieving effective ESG compliance in India
requires transformation of corporate governance culture, institutional coordination among regulators, and
judicial recognition of sustainability as an extension of the constitutional right to life under Article 21.