ESG COMPLIANCE IN INDIA: REGULATORY ENFORCEMENT IN THE ERA OF CORPORATE SUSTAINABILITY CLAIMS

This paper examines the structural evolution of corporate environmental governance in India, from a discretionary, reputation-driven Corporate Social Responsibility (CSR) framework to a legally binding, dual-track regulatory enforcement regime. Central to this change is the Securities and Exchange Board of India’s (SEBI) codification of the Business Responsibility and Sustainability Reporting (BRSR) framework, complemented by the introduction of the “BRSR Core” mandate. Regulators have effectively altered the evidential bases for corporate sustainability disclosures by mandating phased, reasonable third-party assurance for key intensity-based sustainability metrics, and extending these obligations into transnational corporate value chains. At the same time, the rise of "greenwashing," which involves misrepresenting or exaggerating corporate environmental claims, has led to new enforcement actions under consumer protection laws. This paper offers a critical look at the Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024, issued by the Central Consumer Protection Authority (CCPA). It details the strict legal responsibilities and criminal penalties set up to maintain market integrity. In addition to regulatory frameworks, this study explores how innovative companies turn compliance metrics into reputational assets. This approach helps them reduce their cost of capital, gain access to green financing options, and improve employee retention. Lastly, the paper addresses significant obstacles to this new era of compliance. These include a serious fragmentation of value-chain data among unlisted Small and Medium Enterprises (SMEs), a shortage of qualified sustainability assurance providers, and ongoing conflicts between following compliance checklists in boardrooms and making real investments in net-zero initiatives.