India’s ESG Trailblazing Journey - Blog

India is on a rise, marking a new era of economic prosperity and industrial growth, as the GDP is anticipated to rise 7 percent coupled with 1.5+ lakh startups, reshaping the country’s future. The Environmental, Social, and Governance (ESG) paradigm, understood as a priori for corporate compliance, is today a business imperative.
 
Here’s a snippet into India’s evolving ESG landscape, reflecting trends, challenges, and the road ahead, all while capturing the soul of a nation embracing change.
 
ESG Landscape: Challenges & Progress
Data - The Bedrock of ESG: Indian enterprise has come to realize the importance of data, especially in the current fast-paced environment. However, most companies are not able to leverage and struggle to assemble relevant ESG-related data. Understanding such a reality, organizations are today making investments in state-of-the-art enterprise applications and analytics to meet global standards from Global Reporting Initiative (GRI) to Sustainability Accounting Standards Board (SASB) framework. These efforts emphasize not only compliance, but also delve deeper into transparency and accountability.
 
Financial Institutions Leading the Green Charge: Indian financial institutions are becoming crucial ESG players. Banks are designing frameworks for green bonds and other sustainable finance instruments as an indicator that marks the new direction of investing responsibly. It is a trend that further supports and boosts companies’ credibility seeking national and global ESG ratings from agencies like MSCI ESG Ratings, Sustainalytics’ ESG Risk Ratings, S&P Global ESG Score, and more, thus fueling a cycle of sustainability and investment.
 
Diversity in Leadership: Indian firms are finally walking the talk on diversity. Beyond token gestures, there is a concentrated effort to build diverse leadership pipelines. Gender diversity, marginalized community representation, and inclusive boardrooms have now become benchmarks of corporate progress in India, which is in line with the ESG goals.

Beyond Mandates:  While Securities and Exchange Board of India (SEBI)—India’s regulatory body for securities and commodity markets—enforces ESG reporting for the top 1,000 listed companies through Business Responsibility and Sustainability Reporting (BRSR) framework, many private entities and smaller public companies are embracing it voluntarily. This proactive adoption reflects the conviction that sustainability is no longer just a regulatory box to tick; rather, it’s a much-needed business imperative.

Sector Spotlights: Sustainable Services, Smarter Manufacturing
Firstly, is the services sector, which is leading the sustainability race. In industries like IT, Banking, financial services and insurance (BFSI), and consulting, ESG is becoming a competitive edge. Companies are using sustainability training and certifications to win over global clients. Real estate firms are also responding to tenant demands for energy efficiency, reflecting the broader trend of environment-conscious consumerism.
 
Next is manufacturing, which is redefining processes and products. At present, manufacturers are innovating like never before. Whether dealing with renewable energy or Scope 3 emissions—carbon emissions originating from activities outside a company’s scope of control—in the supply chain, the sector has been tackling complexity with determination. With international buyers nudging export-oriented firms, they are increasingly resorting to ESG certifications, which has proved that Indian industries can function successfully in the global green economy.
 
ESG: India’s New DNA
The journey ahead is riddled with complexity but is promising. Evidently, with robust data, innovative practices, and Government support, India’s corporate sector is built to take ESG not just as a buzzword but as a way of life, a lifestyle. It can rightfully be said that the ESG rise in India is not a corporate trend but a cultural renaissance. 

Indian businesses are weaving sustainability into their DNA, and at this crossroads where tradition and innovation meet, proving that progress doesn’t have to come at the cost of the planet or society. By embracing these principles, companies guarantee not only a better tomorrow but also a resilient, sustainable India.