EMERGING ISSUES AND CHALLENGES IN ESG DISCLOSURE IN INDIA

Abstract

Today throughout the globe climate change, increasing inequalities, the needs of society, and transparency in corporate practices are becoming debatable issues. Due to the increase in industrialised development and thereby, the emission of harmful gases to the environment, pollution of water, soil, and land is increasing the challenge for the existence of human life. On the other side, the payment of inadequate salaries, unhealthy workplaces, sub-standard goods, and increasing gaps in societies are also raising an alarming situation for humanity. Frauds, particularly corporate frauds, have a profound effect on the people as a whole rather than just one person's life. In the light of these alarming situations, it has become important that the corporates must comply with not only laws and provide the financial disclosures but also provide the non-financial disclosures. It is important to mention that the rising debate about business of business which shifted from maximization of shareholders wealth to the protection of stakeholders’ interests, has changed the functioning of the Companies. Currently, the stakeholders are pressing the Companies to balance the profitmaking and become a responsible pillar of sustainable development. Post COVID-19 pandemic, the concept of stakeholder capitalism and long-term value creation is gaining popularity. On the other hand, although investors need good returns on investment but their investment decisions are also based on information provided by companies regarding the performance of their responsibilities towards the environment and society at large It is pertinent to mention that the long-term value created of the company depends upon its sincere initiatives towards the environment protection, social measures undertaken by it and a transparent reporting mechanism. To balance all the conflicting interests, Environment, Social and Governance (ESG) reporting is a possible solution. ESG reporting is the disclosures of the information to explain the impact of business in the areas of environment, social perspective and governance. ESG covers the capturing of non-financial information including risks and opportunities in day-to-day affairs of the company.

.KEYWORDS: Environmental, Social, and Governance (ESG), Business Responsibility and Sustainability Reporting (BRSR), Greenwashing,  Sustainable Investment etc.