India

Yes.

Set out below are the key legislative and regulatory sources governing ESG disclosure requirements in India, along with details in relation to their applicability and scope.

Listed entities

The Indian securities market regulator - the Securities and Exchange Board of India (SEBI) mandates the top 1,000 publicly listed companies (by market capitalisation) to make annual ESG disclosures under the Business Responsibility and Sustainability Report (BRSR) framework.^[1] The structure of the BRSR is segregated into essential (mandatory) and leadership (voluntary) indicators. Disclosures on the company’s value chain are voluntary. SEBI introduced an additional subset of BRSR disclosures in 2023, which covers the following nine key ESG reporting parameters: GHG footprint, water footprint, energy footprint, embracing circularity, enhancing employee wellbeing and safety, enabling gender diversity in business, enabling inclusive development, fairness in engaging with customers and suppliers, and openness of business (BRSR Core). The BRSR Core applies to the top 1,000 publicly listed companies (by market capitalisation). As part of the BRSR Core framework, SEBI introduced a dedicated ‘value chain’ disclosure framework (Value Chain Framework), which currently applies on a voluntary basis.

Domestic companies

Section 134(3)(m) and section 134(3)(o) of the (Indian) Companies Act 2013 require the director’s report of an India-incorporated company to include details on conservation of energy and corporate social responsibility initiatives undertaken during the year.

Save for the above, ESG disclosures are not currently mandated for private entities, public unlisted entities and listed entities not forming part of the top 1,000 listed companies by market capitalisation.

Sustainable finance and investment

On 5 June 2025, SEBI issued the “Framework for Environment, Social and Governance (ESG) Debt Securities (other than green debt securities)” (ESG Debt Securities Framework), setting out disclosure and verification requirements for debt instruments labelled as ‘Social Bonds’, ‘Sustainability Bonds’, or ‘Sustainability-linked Bonds’.^[2] While ‘Green Debt Securities’ are separately governed, SEBI has mandated certain disclosure requirements across all categories of ESG debt securities, which include: (a) disclosure of environmental and/or social objectives or rationale for issuing such bonds in the offer documents, (b) ongoing performance disclosure, and (c) verification of the utilisation of proceeds through an independent external review.

SEBI has mandated mutual funds to disclose their ESG policies and practices in the offer documents of ESG schemes.

On 28 November 2025, the Reserve Bank of India (RBI) issued Master Directions on Climate Finance and Management of Climate Change Risks for commercial banks, non-banking financial companies and small finance banks (collectively, the RBI Master Directions on Climate), which mandates disclosures by regulated financial institutions that raise green deposits.

The reporting in respect of BRSR Core parameters is mandatory for all the in-scope entities. However, the assurance or assessment of such BRSR Core disclosures is applicable to the listed entities on a glide path basis (i.e. for FY2025-26 – applicable to top 500 listed entities, and for FY2026-27 – applicable to top 1,000 listed entities (which is the entire universe of those companies that are required to make mandatory BRSR Core disclosures)). To summarise, the BRSR Core has been progressively extended to include more listed companies.

The Value Chain Framework initially required the top 250 publicly listed companies (by market capitalisation) to report ESG data relating to their value chain on a comply-or-explain basis from FY2024-25. However, effective from the reporting cycle FY2025-26, this requirement has changed from a comply-or-explain basis to a voluntary basis. A limited assurance or assessment requirement for value chain disclosures was to apply, also on a comply-or-explain basis, from FY2025-26, which has subsequently been modified to a voluntary basis from FY2026-27.

The Revised BRSR Core Circular has also narrowed the definition of ‘value chain’ to only include an in-scope company’s significant upstream and downstream partners - i.e., those that individually account for 2% or more of the company’s purchases or sales by value (Significant Value Chain Partners). In-scope companies may further limit disclosures to those Significant Value Chain Partners that, together, comprise up to 75% of their total purchases or sales.

The disclosure requirements for issuers of ESG Debt Securities and Green Debt Securities, mutual funds and financial institutions raising green deposits (as outlined in section A.2 above) in India are all mandatory.

The BRSR-mandated disclosures focus on all ESG tenets, including energy and water consumption, GHG emissions, waste management, EPR, environmental impact assessments undertaken by the reporting companies, and general disclosures relating to the environmental impact of the in-scope companies’ operations, as well as social aspects which cover employee well-being, gender diversity, human rights and community engagement and governance aspects, such as anti-corruption practices, conflict of interest policies and remuneration metrics.  

Although India has not presently adopted international standards such as the ISSB Standards, the BRSR and BRSR Core have evolved in accordance with global best practices, and several disclosure requirements have been mapped against global reporting frameworks, such as the GRI Standards, the UN Sustainable Development Goals, the TCFD Recommendations, Carbon Disclosure Project (CDP) and the SASB Standards.

The BRSR does not incorporate IFRS S1 or IFRS S2, nor does it make compliance with such standards mandatory. The only formal bridge is BRSR’s interoperability language, which allows listed entities to cross-reference disclosures prepared under internationally accepted frameworks such as the GRI Standards, the SASB Standards, the TCFD Recommendations and Integrated Reporting. Since IFRS S2 builds on the TCFD Recommendations and incorporated SASB Standards-derived industry disclosure requirements, there is conceptual overlap and practical interoperability.

The BRSR and BRSR Core frameworks by SEBI adopt a double materiality approach, requiring disclosures on both the financial impact of ESG issues on the in-scope company and such company's impact on the environment and society. The BRSR and BRSR Core frameworks mandate detailed reporting on ESG risks, opportunities and their financial implications, as well as the company’s broader environmental and social impacts, such as GHG emissions, resource usage, labour practices, and community engagement.

BRSR mandates in-scope companies to disclose Scope 1 and Scope 2 GHG emissions, with Scope 3 reporting required only on a voluntary (leadership indicator) basis.

Separately, for FY2025-26, the top 500 publicly listed companies (by market capitalisation) and for FY2026-27, the top 1,000 publicly listed companies (by market capitalisation) that voluntarily report under the Value Chain Framework must disclose the Scope 1 and Scope 2 emissions of their Significant Value Chain Partners, to the extent attributable to their commercial relationship with the reporting company – thereby triggering a limited Scope 3 reporting obligation on the reporting company under the BRSR Core.

The BRSR Core framework stipulates that GHG emissions may be measured in accordance with the GHG Protocol (though this is not a strict requirement). Additionally, in December 2024, SEBI adopted the ‘Industry Standards on Reporting of BRSR Core’ (Industry Standards) to provide further guidance on the methodology and disclosure of GHG emissions, with the aim of ensuring consistency and clarity in BRSR Core reporting.

Yes. SEBI has introduced a mandatory requirement for publicly listed companies to undertake either an assessment or assurance of their BRSR Core disclosures, which is being implemented through a phased glide path. The requirement presently applies to the top 500 publicly listed companies (by market capitalisation) for FY2025-26 and will be extended to cover the top 1,000 publicly listed companies (by market capitalisation) from FY2026-27 onwards.

For the top 250 publicly listed companies (by market capitalisation) that choose to make disclosures pursuant to the Value Chain Framework, they may choose to obtain an assessment or assurance for such disclosures on a voluntary basis.

Notably, the Revised BRSR Core Circular substitutes the earlier requirement of obtaining an ‘assurance’ for BRSR Core disclosures and ‘Value Chain’ disclosures with the more flexible requirement of obtaining either an ‘assurance’ or an ‘assessment’. ‘Assessment’ refers to a profession-agnostic evaluation process that may be conducted by a broader range of third-party service providers. Unlike ‘assurance’, ‘assessment’ does not typically imply reliance on formal professional credentials, such as those held by auditors or chartered accountants – thus allowing in-scope companies to engage not only traditional assurance providers but also other qualified assessors, provided that the evaluation is conducted in accordance with the methodologies prescribed under the Industry Standards.

ESG labelled debt securities, as well as banks’ allocation of proceeds raised from green deposits, are subject to independent verification / assurance requirements.  In addition, a bank raising green deposits shall, with the assistance of external firms, assess annually the impact associated with the funds lent for or invested in green finance activities during a financial year through an impact assessment report.

Yes. In our experience, we see companies aligning their disclosures under international reporting frameworks and making voluntary ESG disclosures.

Several publicly listed companies that are not mandatorily required to make ESG disclosures are opting to voluntarily make such disclosures. Similarly, many unlisted companies and multinational companies also make such disclosures on a voluntary basis given investor sentiment and stakeholder expectations. Companies are making voluntary ESG disclosures as customary practice owing to increasing requirements from investors, lenders etc. Such requirements are now also being hardwired in contractual arrangements for better optics from stakeholders’ perspective.

The (Indian) Department of Economic Affairs  released a Draft Framework of India’s Climate Finance Taxonomy (Draft Taxonomy) on 7 May 2025, which aims to identify and standardise climate-aligned economic activities and guide sustainable investments and finance in India. However, the Draft Taxonomy has not yet been adopted, and as such, India does not presently have a comprehensive local taxonomy on sustainable activities akin to the EU taxonomy, and it is currently unclear whether the Draft Taxonomy will have mandatory application once adopted.

In parallel, India continues to broaden its sustainable finance ecosystem through initiatives such as the BRSR, BRSR Core, the Carbon Credit Trading Scheme 2023 (CCTS) and Green Credit Programme.

The Indian regulatory framework for ESG Debt Securities expressly links disclosure and eligibility requirements to a set of internationally recognised principles and taxonomies. Under the ESG Debt Securities Framework, issuers are permitted to label their instruments as ‘Social Bonds’, ‘Sustainability Bonds’, or ‘Sustainability-linked Bonds’ if the use of proceeds aligns with the following standards: the International Capital Market Association Principles, Climate Bonds Standard, ASEAN Standards, or EU frameworks. Additionally, issuers are required to disclose the global or domestic taxonomies and methodologies referenced in structuring their bonds. Specifically, issuers of ‘Green Debt Securities’ are required to align their disclosure regime with the updated ‘Green Bond Principles’ recognised by IOSCO.

The RBI Master Directions on Climate stipulate that the allocation of proceeds raised from green deposits shall be based on the official Indian green taxonomy, but pending the finalisation of the Indian green taxonomy, the regulated entities shall allocate proceeds towards green activities/projects that encourage energy efficiency in resource utilisation, reduce carbon emissions, reduce emission of greenhouse gases, promote climate resilience and climate adaptation, and value and improve natural ecosystems and biodiversity.

SEBI has clarified that while undertaking BRSR disclosures, companies already preparing and disclosing sustainability reports based on internationally accepted reporting frameworks (e.g. GRI, Integrated Reporting Framework and TNFD) may refer to disclosures made under these frameworks. For instance, many companies in India follow the CDP disclosure system on a voluntary basis, and CDP questionnaires are, to some extent, aligned with the environment-based questions in the BRSR.

In our experience, we see companies aligning their disclosures with international reporting frameworks (including CDP and TCFD) and therefore, they report on climate change-related aspects under BRSR / BRSR Core accordingly.

The RBI published draft guidelines on “Disclosure framework on Climate-related Financial Risks 2024” (Draft Climate Disclosure Framework) in 2024 for the banking sector. The Draft Climate Disclosure Framework is divided into four thematic areas: governance, strategy, risk management, and metrics and targets, which is in line with IFRS S2, though not as granular or comprehensive.  It currently remains in draft form.

India’s ESG regulatory framework has, in the past year, signalled a deliberate shift toward purposeful and grounded implementation that balances ambition with practical feasibility. The recent revisions to the BRSR Core framework signal SEBI’s intent to preserve disclosure integrity while easing early compliance burdens, especially for complex value chain data and assurance-related costs.

Similarly, the release of the Draft Taxonomy marks a meaningful step towards defining green investments in a manner consistent with Indian national development priorities and reinforcing the broader intent of building a robust and locally grounded ESG system. It also expressly recognises transition finance for hard-to-abate sectors, adaptation, resilience and MSME proportionality, making it more India-specific than a pure “green-only” taxonomy. The Draft Taxonomy has not yet been formally adopted, and its final scope, mandatory status and implementation pathway remain to be seen.

Regulators may adopt a truncated form of the BRSR called BRSR Lite, which may be used by unlisted companies or large public companies on a voluntary basis to begin reporting on sustainability-related issues. We also expect to see an increase in voluntary disclosures as investor interest in their portfolio companies increases. Further, India is expected to move towards greater interoperability with global climate-related disclosure frameworks, including ISSB-aligned concepts. The RBI’s Draft Climate Disclosure Framework proposed a broader climate-related financial risk disclosure regime for certain regulated entities, structured around governance, strategy, risk management, and metrics and targets. This draft remains relevant as an indicator of the regulator’s direction of travel, particularly around governance, strategy, risk management, metrics and targets.

Yes. At COP26 in Glasgow, India announced its commitment to achieve net zero emissions by 2070. The Indian government also aims to become a net exporter of energy in the coming years.

The Indian government has further outlined new decarbonisation targets and strategies for 2030, which include: (a) achieving 500 GW of non-fossil energy capacity; (b) meeting 50% of its energy requirements from renewable energy; (c) reducing total projected carbon emissions by one billion tonnes between now and 2030; and (d) reducing the carbon intensity of its economy by 45%. India has subsequently announced its Nationally Determined Contributions (NDCs) in April 2026 setting out policy targets to reduce emissions intensity of India's GDP by 47% by 2035 from 2005 baseline levels and to achieve approximately 60% of cumulative electric power installed capacity from non-fossil fuel-based energy resources. Importantly, the NDC expressly clarifies that India's commitments do not impose sector-specific emission reduction obligations, including for the agriculture sector, with the overarching objective being the reduction of the overall emissions intensity of the economy through the deployment of clean energy and enhanced energy efficiency. 

India has additionally indicated its intention to utilise voluntary cooperation mechanisms under Article 6 of the Paris Agreement to facilitate the transfer and adoption of emerging technologies including green hydrogen, offshore wind, green ammonia, and carbon capture, utilisation and storage in furtherance of its mitigation objectives.

India has introduced a compliance-based carbon pricing tool known as the Carbon Credit Trading Scheme (CCTS) pursuant to the (Indian) Energy Conservation (Amendment) Act 2022. The CCTS provides the statutory framework for the Indian carbon market and includes both: (a) a mandatory ETS applicable to ‘Obligated Entities’ in high-emission sectors, and (b) a voluntary offset mechanism for other entities.

The CCTS was first notified on 28 June 2023 and amended in December 2023. In July 2024, the Bureau of Energy Efficiency (BEE) (the administrator of the CCTS) released the Detailed Procedure for Compliance Mechanism under CCTS, which operationalises the scheme.

‘Obligated Entities’ are required to meet annual GHG emission intensity targets. Entities that outperform the specified targets receive carbon credit certificates, which are tradeable on approved power exchanges in accordance with terms specified in the Central Electricity Regulatory Commission (Terms and Conditions for Purchase and Sale of Carbon Credit Certificates) Regulations, 2026. These regulations establish the framework governing the exchange of carbon credit certificates on approved power exchanges, operationalising the CCTS. Each of these certificates (representing one tonne of carbon dioxide equivalent) must be traded exclusively through approved power exchanges within prescribed floor and forbearance prices. The Indian carbon market is also being actively operationalised with the launch of the Indian Carbon Market Portal on 21 March 2026. Certificates may be banked for future compliance in the manner prescribed under the Detailed Procedure for Compliance Mechanism and Offset Mechanism of the CCTS.

Covered sectors include energy-intensive industries such as cement, iron and steel, petrochemicals, pulp and paper, and fertilisers, as listed in Annexure II to the BEE’s Detailed Procedure for Compliance Mechanism under CCTS. The scheme also establishes a monitoring, reporting and verification framework and will progressively expand sectoral coverage.

In pursuance of the compliance mechanism of the CCTS, the Ministry of Environment, Forest and Climate Change notified the Greenhouse Gas Emission Intensity Target Rules 2025 (GEI Target Rules) on 8 October 2025, directing mandatory GHG intensity targets for approximately 490 industrial units across key sectors, including aluminium, iron and steel, petroleum refining, petrochemicals and textiles. These targets apply for the compliance years 2025-26 and 2026-27, and are calculated using 2023-24 as baseline data. Entities that fail to meet their targets and do not purchase sufficient carbon credit certificates will be subject to financial penalties under the (Indian) Environment (Protection) Act 1986, whereby the penalty will be levied by the Central Pollution Control Board (CPCB) in the form of environmental compensation, equivalent to twice the average carbon credit certificate price, payable within 90 days.

The CCTS marks a significant step towards India’s alignment with its NDCs.

It is not mandatory to have a transition plan or to disclose a climate strategy in the BRSR or otherwise.

However, the Detailed Procedure for Compliance Mechanism under CCTS requires Obligated Entities to prepare and submit a long-term action plan to reduce, remove, or avoid GHG emissions and to act in accordance with their long-term action plan. Details in relation to compliance with such submitted long-term action plan must be submitted in a specified format. Where the actions implemented in terms of the submitted action plan are found to be inadequate for achieving compliance with the specific GHG emission norm, the shortfall would have to be met by purchasing carbon credit certificates.

This obligation is sought to be reinforced by the introduction of the GEI Target Rules, which require mandatory compliance with GHG emission intensity targets on a per-unit-of-output basis. These targets are set at the facility level and form part of the legally binding requirements applicable to Obligated Entities.

Presently, companies are not generally required to set or meet climate-related targets.

However, under the Detailed Procedure for Compliance Mechanism under CCTS, Obligated Entities are mandated to meet GHG emission intensity reduction targets. This marks India’s first enforceable framework for GHG target-setting at the entity level.

The GEI Target Rules set out specific emission intensity reduction targets for approximately 490 industrial units, covering compliance years 2025-26 and 2026-27. If an Obligated Entity fails to comply with GEI targets and fails to submit the carbon credit certificates equivalent to the shortfall for compliance, CPCB will impose environmental compensation for the shortfall for the respective compliance year, which will be equal to twice the average price at which carbon credit certificates were traded during the trading cycle of that compliance year. The average price shall be determined by the BEE.

Separately, mandatory renewable energy obligations have been prescribed under the Electricity Act 2003, which require specific consumers (e.g. power distribution companies and captive consumers) to consume a certain percentage of electricity from eligible non-fossil sources, as a percentage of the total consumption of electricity.

The mandatory ‘Perform, Achieve and Trade’ Scheme issued under the (Indian) Energy Conservation Act 2001 also places obligations on designated consumers in specific energy-intensive industries, whose annual energy consumption is equal to or greater than the threshold limit specified by the Central Government notifications, to meet energy savings targets through the issuance of tradeable energy savings certificates.

Yes. India's circular economy obligations are primarily implemented through a mandatory EPR framework administered under the Environment (Protection) Act 1986. There are no general eco-design standards of broad application; however, mandatory recycled content requirements now function as a de facto product-design obligation in certain sectors.

Producers, importers, and brand owners (PIBOs) across sectors such as plastic waste (Plastic Waste Management Rules, 2016 (as amended in 2026)), battery waste (Battery Waste Management Rules, 2022), e-waste (E-Waste Management Rules, 2022), waste tyre (Extended Producer Responsibility for Waste Tyre, 2022), used oil ( Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016), end-of-life vehicles (Environment Protection (End-of-Life Vehicles) Rules, 2025), construction and demolition waste (Environment (Construction and Demolition) Waste Management Rules, 2025), non-ferrous scrap metal (Extended Producer Responsibility for Scrap of Non-Ferrous Metals, 2025) and Solid Waste (Solid Waste Management Rules 2026) are subject to mandatory collection, recycling, and reporting targets, enforced through a centralised CPCB digital portal. Enforcement is administered by CPCB and through an EPR Certificate Trading Platform. Under each framework, PIBOs are required to register on the relevant sector-specific digital portal, submit annual action plans, and meet annually escalating collection, recycling, and reporting targets. Compliance obligations are discharged either through direct recycling arrangements with CPCB-registered recyclers or through the purchase of EPR certificates on the National EPR Certificate Trading Platform. Penalties in the form of “environmental compensation” may also be imposed in case of non-compliance with the relevant framework.

While the primary enforcement jurisdiction vests in the CPCB at the national level, enforcement is concurrently administered by the respective State Pollution Control Boards and Pollution Control Committees at the state and union territory level, with the result that PIBOs are required to comply not only with national frameworks but also with varying state-level conditions, directions, and reporting requirements issued by the relevant local authority.  

India does not have an economy-wide mandatory corporate sustainability due diligence regime comparable to the EU's CSDDD and there is currently no legislative proposal for mandatory sustainability due diligence requirements before the Parliament. India’s responsible business conduct framework is currently voluntary.

The Ministry of Corporate Affairs has released the National Guidelines on Responsible Business Conduct (NGRBC) 2019 setting out a nine-principle framework applicable to all businesses operating in India. The principles address, amongst other matters, human rights, environmental stewardship, fair labour practices, and supply chain responsibility. Compliance with the NGRBC is voluntary and the framework does not give rise to legally enforceable due diligence obligations.

The BRSR mandates disclosures of compliance with the NGRBC principles for the top 1,000 listed companies in India. Whilst BRSR Core disclosures are mandatory for these entities, value chain ESG disclosures under the BRSR remain voluntary and do not constitute a supply chain due diligence obligation.

Section 135 of the Companies Act 2013 mandates a Corporate Social Responsibility spend of 2% of average net profits for qualifying companies. Whilst this creates a statutory accountability mechanism for social and environmental outcomes, it does not impose due diligence obligations and is therefore materially distinct from a due diligence regime.

The Draft Taxonomy was issued in May 2025 for public consultation. The taxonomy seeks to standardise the classification of climate-aligned economic activities across six sectors being power, mobility, buildings, agriculture, water security, and hard-to-abate industries with the aim of mobilising climate finance. It has not yet been formally notified.

The RBI Master Directions on Climate seeks to enable financial institutions to carry out a comprehensive assessment of climate change risks, integrate those risks into their existing risk management frameworks, and optimise the flow of credit to green activities or projects while overcoming greenwashing challenges and protecting depositors' interests. It requires regulated entities to assess and integrate climate change risks into their risk management frameworks and, where they raise green deposits, to publish third-party verification / assurance and impact assessment reports and place a review report before the board covering green deposit proceeds and allocations.

As mentioned in section A.2 above, SEBI has also issued frameworks for ESG Debt Securities and green debt securities, as well as guidelines on a new category of mutual funds labelled as “ESG Mutual Funds” that invest a minimum of 65% of assets under management in companies that report under the BRSR.

Additionally, India has issued multiple tranches of sovereign green bonds since January 2023 under the Sovereign Green Bonds Framework 2022.

India is rapidly accelerating the rollout of its domestic carbon market architecture, with both the compliance and voluntary offset mechanisms under the CCTS already under implementation. The formal notification of the GEI Target Rules, with quantifiable prescribed penalties for non-compliance marks a significant milestone in the implementation of India’s vision of achieving net-zero carbon emissions by 2070. Building on this foundation, the Ministry of Power has also launched the Indian Carbon Market Portal on 21 March 2026 which serves as a digital platform for trading carbon credits.

On the renewable energy front, the Parliamentary Standing Committee on Energy is actively reviewing a wind energy roadmap against India's target of 100 GW of wind power by 2030.

The Green Hydrogen Mission (2023) continues to advance with the Strategic Interventions for Green Hydrogen Transition programme. A Green Hydrogen Certification Portal was launched on 17 June 2026 by the Union Minister for New and Renewable Energy to further support the green hydrogen ecosystem.

Taken together, these developments reflect a coordinated and accelerating whole-of-government effort to align India's economic growth trajectory with its NDC commitments and long-term climate goals.

No.

Yes. The Advertising Standards Council of India (ASCI) is a voluntary self-regulatory organisation and its aim is to ensure that advertisements in India are fair, honest, and compliant with the ASCI’s Code for Self-Regulation of Advertising Content in India (ASCI Code). The ASCI’s decisions are not binding, unless the party in question submits to them.

The ASCI issued Guidelines for Advertisements Making Environmental / Green Claims, effective from 15 February 2024 (ASCI Guidelines), which explain the ASCI’s approach in determining whether an environmental / green claim on advertisements violates Chapter I of the ASCI Code.

The ASCI has applied the ASCI Guidelines to advertising claims, specifically targeting fast-moving consumer goods companies making absolute, unqualified claims (such as “100% natural”, “chemical-free”, and “eco-friendly”) for products containing synthetic ingredients, as well as electronics manufacturers exaggerating the energy-efficiency ratings of their appliances.

While decisions of the ASCI are non-binding, the Central Consumer Protection Authority (CCPA) has requested the ASCI to forward any advertisements that are non-compliant with the ASCI Code and which could potentially violate the Consumer Protection Act 2019 to it, for appropriate action.

The CCPA also issued  Guidelines for Prevention and Regulation of Greenwashing and Misleading Environmental Claims 2024 (CCPA Guidelines) on 15 October 2024, which apply to all advertisements in respect of goods or services, and require that environmental and green claims be substantiated through appropriate disclosures backed by verifiable evidence. The CCPA also monitors the market, treating greenwashing, including misleading social claims regarding ethical sourcing, fair trade, or labour practices, as an “unfair trade practice” and a “misleading advertisement” under the (Indian) Consumer Protection Act, 2019. Any contravention of the CCPA Guidelines is considered to be a violation of the (Consumer Protection Act 2019 and is punishable by imprisonment and a fine.

SEBI has introduced stringent disclosure requirements[1]  for issuers of Green Debt Securities, such as continuous monitoring, prohibition of utilisation of funds for non-green purposes, prohibition of misleading labels, and highlighting green practices while hiding unfavourable information.

Likely grounds include:

1. failure to meet disclosure requirements under securities laws and regulations – e.g. providing materially false or misleading information in listing documents or other corporate and ESG disclosure documents such as the BRSR;
2. breaches of directors’ duties – e.g. section 166 of the (Indian) Companies Act 2013, which requires a director to act in the best interests of the company and towards the protection of the environment; and
3. claims for misrepresentation, misleading or false advertisement where environmental / green claims are used falsely, without adequate substantiation, or without appropriate disclosures and qualifications as to the scope of the claim so as to be misleading.

There are also risks of regulatory enforcement under codes or guidance issued by financial regulators for the issuance and listing of Green Debt Securities and ESG disclosures.