ESG Strategy and Compliance
To formulate an effective ESG strategy as per the ESG framework which are applicable to conduct business operations in India and have an effective governance with environment friendly measures and to ensure that the Company is complying with all the ESG related compliances.
The global community is negotiating its ways to mitigate climate change and its impact while assuring that no severe effects are felt on business operations and the environment.
India is making an aggressive move toward ESG reporting and drafting an ESG strategy framework my making disclosures by market players to disclose sustainable ways of operation
Businesses are integrating Environmental, Social, and Governance (ESG) disclosures into their marketing strategy to attract more consumers. This is in line with the policies adopted by Indian regulators, which implies that India is making an aggressive move toward ESG reporting and disclosure by mandating market players to disclose sustainable ways of operation. Special focus is being given to preparing the foundational principles and framework enabling businesses to run conscientiously while maintaining transparency and accountability in reporting.
ESG Disclosures in India: Evolution
The ESG strategy framework by Indian organizations has witnessed significant improvements since 2020. The ongoing advancements are the results of the market regulator SEBI’s push for ESG disclosures. This has led to an increase in the number of organizations positioning ESG data, from 127 in FY20 to 330 in FY22.
- The Companies Act of 2013 introduced the first ESG disclosure requirements for organizations. Section 134(m) commands enterprises to present a report curated by the Board of Directors on the conservation of energy.
- In 2017, SEBI published a report on ‘Disclosure Requirements for Issuance & Listing of Green Debt Securities’. This report presented a regulatory framework for the issuance of green debt securities in India.
- In 2021, SEBI introduced the Business Responsibility and Sustainability Reporting (BRSR) framework in May 2021, which required the top 1000 companies by market cap to disclose their ESG performance.
The stark advancement in the ESG disclosures was reported based on their integrated reports, sustainability reports, as well as BRSR
