OECD Report Urges State-owned Enterprises to Lead by Example in Sustainability
SDG 12: Responsible Consumption & Production | SDG 13: Climate Action
Institution: Ministry of Finance
The OECDβs new report State-Owned Enterprises and Sustainability highlights that state-owned enterprises (SOEs) play a decisive role in advancing environmental and social objectives. Concentrated in energy, transport, utilities, and infrastructure, SOEs are often among the largest emitters and employers, giving them both responsibility and leverage in sustainability transitions. The report outlines how ownership entities can integrate environmental, social, and governance (ESG) factors into SOE mandates, strengthen disclosure standards, and ensure alignment with national climate and sustainability targets. It builds on the OECD Guidelines on Corporate Governance of SOEs, with case studies illustrating how SOEs can be steered to lead by example.
State-owned enterprises (SOEs), known in India as Central Public Sector Enterprises (CPSEs), are companies in which the Union Government holds a majority stake.
For India, where SOEs dominate in coal, power generation, railways, and public utilities, aligning their operations with sustainability goals is central to achieving national climate targets. Entities like Coal India, NTPC, and Indian Railways can drive low-carbon transitions if supported by ownership policies that prioritise ESG accountability, transparent reporting, and green investment. As India pursues disinvestment and corporatisation, embedding OECD-style governance reforms will be critical to balance fiscal objectives with sustainability imperatives.
Follow the full report here:
OECD β State-Owned Enterprises and Sustainability (2025)