Maharashtra
CM Inaugurates India’s First ESG Lab
- 20 Aug 2025
- 3 min read
Why in News?
Maharashtra CM Devendra Fadnavis inaugurated India's first ESG (Environmental, Social, and Governance) Lab in Mumbai, urging students to prepare for a rapidly evolving world influenced by climate change, artificial intelligence, and quantum computing.
- The event also included the felicitation of winners from the national robotics competition, organized by STEM Learning and Brilio (a Private Company).
ESG (Environmental, Social, and Governance)
- About: Environmental, social and governance (ESG) is a set of standards for how an institution operates in regard to the planet and its people.
Importance of ESG for India
- Climate: India faces extreme weather events (e.g., floods, heatwaves, sea-level rise).
- In 2024, extreme weather occurred on 322 out of 366 days (CSE report).
- Companies with strong environmental practices, clean energy, and reduced emissions can mitigate these risks.
- Social: India struggles with poverty, inequality, and lack of basic needs.
- Companies focusing on social responsibility can create a more inclusive economy and drive positive societal change.
- Governance: Strong corporate governance based on transparency and ethics rebuilds trust, attracts investments, and supports sustainable growth.
India’s ESG Initiatives
- SEBI Mandate: The top 1,000 listed companies must disclose ESG performance through the Business Responsibility and Sustainability Reporting (BRSR) Framework.
- The framework aligns with Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB).
ESG Related Recommendations of Parliamentary Standing Committee
- ESG Oversight Body: Proposed within the Ministry of Corporate Affairs (MCA) to ensure genuine sustainability claims.
- The body should include forensic experts and set sector-specific ESG guidelines.
- Recommendations to support Micro, Small, and Medium Enterprises (MSMEs) in adopting ESG practices.
- Amend the Companies Act, 2013 to make ESG a core duty of directors and embed sustainability into business strategy.
- Penalties for False Claims: Stricter and faster penalties for false ESG claims to prevent greenwashing.
- Strengthen Serious Fraud Investigation Office (SFIO) and the National Financial Reporting Authority (NFRA) to tackle financial crimes and improve Corporate Social Responsibility (CSR) oversight.