ESG AND CORPORATE GOVERNANCE: THE EMERGING COMPLIANCE LANDSCAPE FOR INDIAN COMPANIES

A significant shift is represented by the incorporation of Environmental, Social and Governance (ESG) factors into corporate Governance. This article traces from traditional Corporate Social Responsibility (CSR) under the Companies Act, 2013, to more structured ESG disclosures mandated by the Securities and Exchange Board of India (SEBI) thereby exploring evolving compliance landscape for Indian firms. It scrutinizes key regulatory developments like the Business Responsibility and Sustainability Reporting (BRSR) framework, director’s duties under Section 166(2) and emerging issues such as greenwashing. Depending on the established precedents, statutory provisions emphasize not only the progress but all the underlying challenges in enforcement, implementation and alignment with global standard. It highlights how a voluntary sustainability initiative evolved into a critical component of corporate compliance. It explores and accentuates the environmental, social and governance dimensions of ESG and their role in shaping modern corporate practices. This article ultimately concludes that ESG is no longer a mere compliance exercise but became a strategic imperative for sustainable corporate value creation in India’s developing economy. Keywords: Environmental, Social and Governance (ESG), Corporate Governance Sustainability, Business Responsibility and Sustainability Report (BRSR), Corporate Social Responsibility (CSR), Compliance, Sustainable Development, Stakeholder Governance, Greenwashing.