Critical Overview of ESG Legislation in India: A Comprehensive Analysis

Abstract

Environmental, Social, and Governance (ESG) considerations have emerged as critical components of corporate strategy and regulatory frameworks worldwide, fundamentally reshaping how businesses operate and are evaluated. India has progressively developed a comprehensive legislative and regulatory architecture to integrate ESG principles into corporate governance and business operations, positioning itself as a leader among emerging markets in sustainability regulation. This paper provides an extensive critical analysis of key ESG legislations in India, with particular focus on the SEBI (Credit Rating Agencies) Regulations, 1999, the Companies (Corporate Social Responsibility Policy) Rules, 2014, and the Business Responsibility and Sustainability Report (BRSR) framework introduced by SEBI for mandatory implementation in the financial year 2022-23. The analysis examines the historical evolution, implementation challenges, stakeholder responses, and effectiveness of these regulatory mechanisms in promoting sustainable business practices while balancing economic growth objectives. Through comparative analysis with international frameworks and an empirical examination of implementation outcomes, this paper identifies critical gaps and proposes actionable recommendations to strengthen India’s ESG regulatory ecosystem.