SEBI’s ESG Framework: Promoting Responsible Business Practices

SEBI’s ESG framework and BRSR core guidelines are a significant step towards promoting responsible and sustainable business practices in India. The new guidelines require companies listed on Indian stock exchanges to disclose their ESG risks and opportunities in their annual reports and on their websites. Companies are also required to have board-level oversight of their ESG performance and report on it in the annual report. In addition, SEBI has introduced a new category of mutual funds called ESG funds, which invest in companies that meet certain ESG criteria. These guidelines will help prevent greenwashing, improve companies’ sustainability performance, and provide investors with more reliable and comprehensive information on their ESG performance. The framework is expected to contribute to the development of a more sustainable and responsible corporate sector in India.