{"id":50453,"date":"2025-08-05T18:59:02","date_gmt":"2025-08-05T13:29:02","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=50453"},"modified":"2025-08-06T13:08:43","modified_gmt":"2025-08-06T07:38:43","slug":"environmental-social-governance","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/05-08-2025\/environmental-social-governance","title":{"rendered":"Environmental, Social, and Governance (ESG)"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A Parliamentary panel has called on the Ministry of Corporate Affairs (MCA) to create a dedicated oversight body for Environmental, Social, and Governance (ESG) issues.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Environmental, Social, and Governance (ESG)?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is a framework used to evaluate a company&#8217;s performance on non-financial factors. It has become a key consideration for investors, consumers, and other stakeholders who are concerned about a business&#8217;s impact on society and the environment.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img data-dominant-color=\"e9eded\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"547\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/Environmental-1024x547.png\" alt=\"Environmental\" class=\"not-transparent wp-image-50454\" style=\"--dominant-color: #e9eded; width:485px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/Environmental-1024x547.png 1024w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/Environmental-300x160.png 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/Environmental-768x410.png 768w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/Environmental.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Recommendations of the Parliamentary Panel<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Establishment of a Dedicated ESG Oversight Body:<\/strong> The panel urged the Ministry of Corporate Affairs (MCA) to create a specialized oversight authority for ESG. This body should have forensic expertise to proactively detect, investigate, and deter greenwashing, and develop sector-specific ESG guidelines.<\/li>\n\n\n\n<li><strong>Strengthening Legal Mandate: <\/strong>The panel argued that current provisions <strong>under the Companies Act, 2013 (notably Section 166(2)) are too general <\/strong>and lack the robust framework necessary to ensure accurate and substantive ESG disclosures and actions.<\/li>\n\n\n\n<li><strong>Developing MSME Support:<\/strong> The proposed oversight authority should offer targeted assistance and guidance to Micro, Small, and Medium Enterprises (MSMEs) for ESG compliance, addressing their unique capacity constraints.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Other Initiatives Related to Environmental, Social, and Governance (ESG)<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Companies Act, 2013:<\/strong> Mandates certain companies to spend at least 2% of their average net profits on CSR activities.<\/li>\n\n\n\n<li><strong>Business Responsibility and Sustainability Reporting (BRSR): <\/strong>SEBI has introduced BRSR for the top 1,000 listed companies, requiring disclosure of ESG parameters.<\/li>\n\n\n\n<li><strong>International Alignment:<\/strong> India\u2019s policy direction is evolving in response to global ESG trends, aiming for convergence with global best practices such as those from the EU and International Sustainability Standards Board (ISSB).<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: PIB<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>In News<\/strong><\/h2>\n<li class=\"ms-5\">A Parliamentary panel has called on the Ministry of Corporate Affairs (MCA) to create a dedicated oversight body for Environmental, Social, and Governance (ESG) issues.\n<\/li>\n<p><\/p>\n<h3><strong>What is Environmental, Social, and Governance (ESG)?<\/strong><\/h3>\n<li class=\"ms-5\">It is a framework used to evaluate a company&#8217;s performance on non-financial factors. It has become a key consideration for investors, consumers, and other stakeholders who are concerned about a business&#8217;s impact on society and the environment.\n<\/li>\n<li class=\"ms-5\">Establishment of a Dedicated ESG Oversight Body: The panel urged the Ministry of Corporate Affairs (MCA) to create a specialized oversight authority for ESG. This body should have forensic expertise to proactively detect, investigate, and deter greenwashing, and develop sector-specific ESG guidelines.\n<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/05-08-2025\/environmental-social-governance\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":50479,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-50453","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/environmental-social-governance.png","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/50453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=50453"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/50453\/revisions"}],"predecessor-version":[{"id":50474,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/50453\/revisions\/50474"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/50479"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=50453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=50453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=50453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}