Abstract

ESG is the new norm, and it is not new to be vouching for its integration, but the gap between commitment to do so and compliance to abide by it needs to be restructured. This research discusses the vital importance of legal change in converting green commitments into corporate obligations in order to construct an environment-friendly economy. Its quest for reaching the status of a global economic superpower is directly related to its capability to embrace Environmental, Social, and Governance (ESG) principles. This paper specifically examines the lacunae in the current laws, like the Environment (Protection) Act, 1986, Companies Act, 2013, and Energy Conservation Act, 2001, to address the problems with ESG guidelines. It identifies their obsolete prescriptions, feeble mechanisms for enforcement, weak penalties, and lack of public input as barriers to fulfilling environmental aims. It claims that rule of law-based procedures, as opposed to self-regulation, result in a more sound and consistent strategy of sustainable development. Citing examples of global best practices — including those espoused by the EU Green Deal, UN PRI and ASX ESG mandate- it makes the case for the country to conform to international norms for its regulatory environment. According to this perspective, the study shows that a profit-first approach to corporate governance, low incentives, and transparency problems all contribute to ineffective ESG compliance. It emphasizes how tax advantages, governance integration, and required reporting can all be addressed by legal reforms to encourage sustainable business practices. As a step towards accountability and transparency, the paper's conclusion examines recent regulatory developments, specifically SEBI's framework for ESG rating providers. In order for India to achieve the goal of "Viksit Bharat," it urges the swift adoption of a legal ecosystem that connects commitment and compliance. The nation can become a globally competitive, ecologically conscious economy by incorporating ESG into legally binding requirements, turning it from a performative pledge into a quantifiable, legally binding route to sustainable development.

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