Environmental, Social, and Governance Framework and its Interaction with Climate Laws in India

Abstract

The evolution of Environmental, Social, and Governance (ESG) disclosures in India reflects the
growing importance of sustainable and responsible business practices that transcend traditional
corporate social responsibility practices. These practices have been driven by regulatory changes,
voluntary initiatives, and the emphasis on ESG factors in corporate decision-making. The
ongoing attempts to strengthen the effectiveness of ESG disclosures in India reflect a gradual but
determined progression towards several stakeholders working together to factor ESG
considerations into corporate practices and reporting effectively. India’s ESG framework can
potentially contribute to a legislative framework tackling climate change. Through this paper,
the authors analyse the interaction between ESG and climate regulations in India with a focus
on Sustainable Development Goals. This interaction between regimes in India is growing and
can be traced to India’s international commitments and national regulations. The authors
demonstrate that the ESG framework currently interacts with both climate mitigation and
climate adaptation, operating as a potential tool to conciliate corporate climate action. Further,
it can strengthen corporate governance and corporate responsibility in addressing climate
change.