The evolution of ESG laws and regulations is still at a nascent stage in India, where the focus is often on providing protections regarding the environment or workplace conditions without also incorporating the controls and disclosure that are a hallmark of contemporary ESG regulation.

The Securities and Exchange Board of India, responding to the increase in ESG investing and the demand by investors for information on ESG risks, substantially revised the annual Business Responsibility and Sustainability Report required by the 1,000 largest listed companies in India.

Further legislation regarding ESG are likely, given the increased emphasis by the Indian government on ESG issues, which can be seen in India's more active role in global climate forums.

Compliance with ESG regulations - both originating in India and elsewhere around the world - thus, pose a significantly different challenge than India's CSR regulations.

In particular, compliance by Indian companies with the ESG regulations of the U.S., the U.K., the European Union and elsewhere will be critical if India is to take full advantage of the growing decoupling from China and play a more prominent role in global supply chains and the global marketplace overall.

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