SDG 12: Responsible Consumption & Production | SDG 16: Peace, Justice & Strong Institutions
Institutions: Ministry of Corporate Affairs
The Indian Institute of Corporate Affairs (IICA), under the Ministry of Corporate Affairs (MCA), has set up a Core Working Group (CWG) to shape how companies in India handle ESG (Environmental, Social and Governance) responsibilities. ESG refers to how businesses manage their impact on the environment, their responsibilities to society, and the quality of their internal governance.
The group will:
Review company reporting rules under the Companies Act, 2013 to check if they are keeping pace with current needs.
Suggest ways for companies to better involve their stakeholders -meaning investors, employees, customers, regulators, and local communities.
Recommend measures to support innovation and financing of ESG projects so that good practices are not just on paper but can be implemented.
Work on aligning Indian disclosure rules more closely with global standards, so Indian firms can meet the expectations of international investors and markets.
The CWG includes senior industry leaders, such as R. Mukundan (CEO of Tata Chemicals, acting as Senior Expert Advisor), alongside representatives from IOCL, NTPC, Infosys, Reliance, Aditya Birla, Dr. Reddyβs, Tata Steel, ONGC, and others. The School of Business Environment at IICA will act as the Secretariat, meaning it will provide technical and administrative support to the group.
By creating this working group, India is signaling a move toward stronger, more standardised rules on corporate sustainability. This can make company reporting more reliable, strengthen board-level accountability, and help Indian firms compete globally where ESG is becoming a key factor for investment decisions. It also supports Indiaβs shift from voluntary sustainability reporting to a more structured governance framework under the MCA.
Relevant Question for Policy Stakeholders:
How can the CWG ensure that ESG oversight goes beyond compliance and leads to real improvements in environmental and social outcomes?
Follow the full news here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2171696