Between Compliance and Commitment
Evaluating India’s ESG Regulatory Framework
DOI:
https://doi.org/10.14296/ac.v6i3.5795Abstract
India presents a distinctive model in environmental, social, and governance (ESG) policymaking, characterized by a blend of mandatory corporate social responsibility (CSR) spending and structured ESG reporting obligations. Rooted in a history of state-led economic planning and stakeholder-oriented governance, India’s ESG framework reflects a complex evolution from voluntary guidelines to enforceable mandates. Through mechanisms such as the Companies Act 2013 and the Securities and Exchange Board of India Business Responsibility and Sustainability Reporting (BRSR) framework, India aims to institutionalize sustainability and corporate accountability. However, this article argues that despite progressive regulatory intent, practical implementation falls short due to vague qualitative disclosures, greenwashing, insufficient enforcement, and a compliance-driven mindset.
Using case studies of four public sector undertakings—COAL India Limited, NTPC Limited, the Oil and Natural Gas Corporation Limited, and the Steel Authority of India Limited—the article conducts a textual analysis of BRSR environmental disclosures. Findings reveal that, while some companies demonstrate robust identification of environmental risks and mitigation strategies, others rely on rhetoric, omit critical risks such as carbon emissions, and lack measurable ESG goals or timelines. Director statements across companies are promotional rather than reflective, failing to acknowledge environmental challenges. Additionally, sustainable sourcing practices are weak, with little data on supplier assessments or integration of ESG criteria in procurement.
The article contends that India’s ESG framework, while promising, suffers from limited accountability, greenwashing, and bureaucratic box-ticking. It calls for a cultural shift in corporate governance where ESG is central to business vision and strategy, supported by stronger internal audits, clearer metrics, and meaningful stakeholder engagement. Lessons from India highlight the need for regulatory balance alongside genuine corporate responsibility.
Keywords: PSU ESG case studies; BRSR; mandatory CSR; India.
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