ESG Disclosures and Investing In India - An Overview

Abstract

Environmental, Social and Governance (ESG) factors are the focus of current reporting trends and are viewed as a means of inculcating the principles espoused by Triple Bottom Line into corporate culture. This article looks at the background and context of ESG and its positioning in international corporate reporting practices. The state of acceptance and action in the Indian context is also studied, where it is found that this concept has recently begun in India and is slowly catching up with the reporting levels in some of the more advanced economies. There are areas for improvement and the reasons for these barriers are also discussed. Finally, it is suggested that EGS needs to be introduced in India using a basic level of regulation along with creation of a higher level of awareness about this concept, which could lead to investors demanding such information from corporates before taking an investment decision.