A Comparative Study of Environmental Social Governance Framework between India and The European Union for Strengthening Corporate Governance

The Environmental, Social, and Governance (ESG) framework has become a crucial tool for promoting sustainable corporate governance worldwide. This paper compares the ESG regulatory frameworks in India and the European Union (EU) to evaluate their efficacy in enhancing corporate accountability and transparency. The Environmental, Social, and Governance (ESG) compliance system in India is still in its infancy. On the other hand, the European Union's (EU) extensive ESG regulatory framework is a testament to its commitment to climate change. The primary focus of this paper is to compare India’s ESG regulations and framework with the European Union’s ESG regulations and to identify gaps in the ESG framework in corporate governance. This research will evaluate India’s ESG framework in comparison with the EU’s excellence, and will help policymakers and stakeholders to understand the ESG differences. The current structure of ESG disclosure in India is governed by the Securities and Exchange Board of India (SEBI) in the Business Responsibility and Sustainability Report (BRSR) and orders within the Companies Act framework. The European Union has a wide range of mandatory disclosure requirements, including the Corporate Sustainability Reporting Directive (CSRD), Sustainable Finance Disclosure Regulation, and EU taxonomy.