Behind the Green Curtain: Regulating Corporate ESG Claims in India’s Emerging Market

In recent years, Environmental, Social, and Governance (ESG) considerations have taken centre stage in corporate strategy and investor decision-making. In India’s rapidly expanding economy, companies are increasingly leveraging ESG narratives to enhance their market appeal and attract global capital. However, the lack of robust regulatory frameworks and standardized disclosure norms has led to growing concerns about "greenwashing"—the practice of exaggerating or misrepresenting ESG credentials to mislead stakeholders. This paper explores the regulatory landscape governing ESG claims in India’s emerging markets, analysing the effectiveness of existing mechanisms and the challenges posed by inconsistent reporting, voluntary compliance, and limited enforcement. It examines the role of regulatory bodies such as the Securities and Exchange Board of India (SEBI), which has introduced initiatives like the Business Responsibility and Sustainability Report (BRSR) to improve transparency and accountability. Through case studies and comparative analysis with global practices, the paper highlights gaps in current regulations and identifies potential reforms to ensure that ESG claims are both credible and enforceable. The study argues that for India to build a sustainable and trustworthy ESG ecosystem, a shift toward mandatory disclosures, third-party audits, and stronger penalties for false claims is imperative. Ultimately, this research advocates for a balanced regulatory approach that fosters corporate responsibility while protecting investor and consumer trust in India’s evolving ESG landscape.