State PCS - Maharashtra (MPSC)

• 20 Aug 2025

CM Inaugurates India’s First ESG Lab

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.