ESG and Its Implications in India

ESG and its
implications
in India
Ashi Gautam
National Law School of India University
Batch 2025
Roadmap
 Introduction
 Practicality
 Legal Framework
 Global Standing
 Some opinions
 Conclusion
Introduction to ESG
ESG refers to the criteria used by
investors and stakeholders to evaluate
a company's impact on society and the
environment, as well as its ethical and
governance practices.
ESG- The fundamental pillars
Environmental Social
Governance  Board
Composition
 Climate change  Labour Practices  Executive
 Energy Efficiency  Diversity and Compensation
 Shareholder
 Management of inclusivity Rights
Natural Resources  Human Rights  Ethical Business
Practices
 Biodiversity and  Product Safety and  Audit and
conservation quality Accounting
Practice
 Sustainability  Customer relations  Data Privacy
 Waste management  Stakeholder
engagement

Roadmap
Introduction
 Practicality
 Legal Framework
 Global Standing
 Some opinions
 Conclusion
Risk
Mitigation
Innovation
Long term
and
Sustainabilit
Competitive
y
Advantage But why
bother
anyways
?
Reputation
Employee And Brand
Retention Value
Access to
capital

Roadmap
Introduction
 Practicality
 Legal Framework
 Global Standing
 Some opinions
 Conclusion
The Legal framework of ESG in India
 The Companies Act, 2013

 SEBI (Listing Obligations and
Disclosure
Requirements),Regulations,2015)
Miscellaneous
 Labour Laws/Codes
 Various Pollution Control Laws- e.g.
Environment Protection Act, 1986, Water
(Prevention and Control of Pollution)
Act, 1974, Hazardous Waste
(Management, Handling and
Transboundary Movement) Rules, 2016,
etc.
The
Companies
Act, 2013
Section 166: Duties of the Directors.
Section 134 : Financial statement, Board‘s report, etc.
Section 135: Corporate Social Responsibility r/w the Companies (Corporate Social Responsibility
Policy) Rules
Section 149: Company to have Board of Directors
Section 178: Nomination and Renumeration Committee and Stakeholder Relationship Committee .
ESG
Disclosures and
Reporting
SEBI (Listing Obligations and
Disclosure
Requirements),Regulations,2015)
2010 : MCA issues National Voluntary
Guidelines on Social, Environmental &
Economic Responsibilities of Business
(‘NVGs’)
2012: SEBI makes ESG reporting in the

form of business responsibility
reporting (‘BRR’) mandatory for top
100 listed Companies.
Later (2015) this was increased to 500

and then (2019) to top 1000 companies.
While in parallel
2019: MCA 2021: SEBI The BRSR

modernized the amended the Framework came
NVS in the form LODR into effect from
of National regulations to financial year
Guidelines for prescribe updated 2022-2023
Responsible requirements for mandating the top
Business BRSR (instead of 1000 listed
Conduct the previous entities to
(‘NGRBCs’). BRR) along the disclose a BRSR
lines of the in their annual
NGRBC report.
Current Framework
SEBI NGRBCs
MCA
Business Responsibility and Sustainability Reporting

(“BRSR”) Framework
Regulation 34(f), SEBI(LODR) Regulations,2015: Annual Report-
General
Disclosure
Disclosure under
BRSR have been Management
and Process
divided into 3 Disclosures
parts.
Category-wise Essential
performance
disclosure wrt
to 9 principles
under the
NGRBC
Leadershi
p
BRSR Core is a subset of the wider BRSR
Framework.
The key difference between BRSR and BRSR
Core include:
 KPIs and attributes
BRSR Core  ESG-related information pertaining to value
chains of the company(separately for
upstream and downstream partner)
 Applicability – FY 2023-2024- top 150 listed
Co
 Mandatory to take assurance from assurance
providers to prevent greenwashing
BRSR Lite are voluntary ESG

disclosures for unlisted and smaller
listed companies
BRSR Lite  These have:
 Lesser disclosures requirements
 Are voluntary
 Has fewer questions

Roadmap
Introduction
 Practicality
 Legal Framework
 Global Standing
 Some opinions
 Conclusion
Global Significance

Roadmap
Introduction
 Practicality
 Legal Framework
 Global Standing
 Some opinions
 Conclusion
The enforcement
dilemma?
Thankyou
QnA

ESG and Its Implications in India

Uploaded by

Copyright:

Available Formats

ESG and Its Implications in India

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ESG and Its Implications in India

Uploaded by

Copyright:

Available Formats

ESG and its

investors and stakeholders to evaluate

a company's impact on society and the

environment, as well as its ethical and

 The Companies Act, 2013

Section 134 : Financial statement, Board‘s report, etc.

Section 149: Company to have Board of Directors

2012: SEBI makes ESG reporting in the

Later (2015) this was increased to 500

2019: MCA 2021: SEBI The BRSR

Business Responsibility and Sustainability Reporting

BRSR Lite are voluntary ESG

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.