Mandatory ESG disclosures under SEBI and menace of greenwashing in India

OPINION

- PANKAJ CHHUTTANI

As India strides toward a more sustainable and responsible financial ecosystem, the Securities and Exchange Board of India (SEBI) has assumed a pivotal role in integrating environmental, social, and governance (ESG) considerations into corporate reporting. With the implementation of mandatory ESG disclosures under the Business Responsibility and Sustainability Reporting (BRSR) framework, SEBI aims to foster transparency, accountability, and long-term value creation in corporate India. However, these noble intentions are shadowed by the specter of greenwashing, a growing concern that threatens to undermine the credibility of the ESG movement.

This article critically examines the evolution, scope, and implications of SEBI's ESG disclosure norms while scrutinizing the risks of greenwashing that have started to plague India's sustainability narrative. It explores whether the current regulatory approach is robust enough to curb deceptive practices or if India is merely painting its economy green with insufficient checks on corporate conduct.

GENESIS OF ESG DISCLOSURES IN INDIA: FROM VOLUNTARY TO MANDATORY