ESG in India: A Companies Act Perspective Connecting Law, Governance & Sustainability
ESG in India: A Companies Act Perspective Connecting Law, Governance & Sustainability 1. Introduction: The Legal Spine of ESG in India 2 ESG (Environmental, Social, Governance) 2 ● Environmental (E): 3 ● Social (S): 3 ● Governance (G): 3 Purpose of this Article: 3 2. The Companies Act Hooks for ESG 4 2.1 Section 134 & Rule 8 of Companies (Accounts) Rules, 2014 4 ● Mandatory Board’s Report Disclosures: 4 2.2 Section 135 & Companies (CSR Policy) Rules, 2014 4 2.3 Governance Framework Supporting “G” 5 3. From Principles to Practice: NGRBC & BRSR 5 3.1 The Nine NGRBC Principles – ESG Mapping 5 3.2 BRSR (Business Responsibility & Sustainability Reporting) 7 3.3 BRSR Section-Wise Coverage 7 4. Regulating ESG Ratings: SEBI’s Framework for ESG Rating Providers (ERPs) 9 4.1. Background & Objective 9 4.2. Registration Requirements 10 4.3. Governance & Independence 10 4.4. Methodology & Disclosure Norms 10 4.5. Conflict of In...