Module Application
- Does your organisation prepare environmental, social and governance (ESG) reports on a mandatory or voluntary basis?
- Does your organisation understand the legal and regulatory ESG obligations it must comply with?
- Does your organisation understand how to navigate and comply with fundamental legislative and compliance requirements that surround the ESG reporting framework in India, such as the National Guidelines on Responsible Business Conduct (NGRBC)?
Module Scope
The India Environmental, Social and Governance module explains how organisations operating in India can meet their ESG reporting obligations. The module demonstrates effective practical guidance to assist the organisation to implement and maintain best practice processes to ensure compliance throughout all levels of the organisation.
This module covers the NGRBC in detail and addresses each of the nine principles individually, providing:
- Explanations of the requirements of the principle
- Key reportable metrics for the principle
- Best practice advice for achieving consistency with the principle, and
- A summary of reporting obligations related to the principle
Compliance with the NGRBC is not currently mandatory for all companies. However, the 1000 largest companies listed on a stock exchange in India must report their compliance with the NGRBC annually. All other companies may choose to meet ESG reporting obligations on a voluntary basis.
This module clarifies which organisations have reporting obligations and explains how to report compliance accurately on a mandatory or voluntary basis. The module also details the corporate social responsibility committee and policy obligations of large and profitable companies.
The module references a range of legal and regulatory instruments, such as:
- Companies Act 2013 (IND)
- Constitution of India
- Securities and Exchange Board of India Act 1992 (IND)
- Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulation 2015 (IND)
- SEBI Circular No. SEBI/HO/CFD/CMD/CIR/P/2020/12
- SEBI Circular No. SEBI/HO/CFD/PoD-2/P/CIR/2023/4
The specific questions and answers covered by the module include:
- How to deploy processes and technologies designed to improve environmental sustainability and minimise environmental and social harm caused by the organisation’s operations
- How to recognise, measure and address adverse environmental impacts
- How to design policies, structures and procedures to promote the protection of human rights
- How to influence public and regulatory policy in a responsible and transparent manner
- How to incorporate measures designed to minimise adverse social, cultural and economic impacts into development plans
- How to implement governance systems designed to promote ethical business practices, engage with stakeholders, and protect employees and consumers
- How to design all policies, systems and procedures to promote ethical business practices and prevent bribery, corruption, and conflicts of interest
- How to provide employees and workers with a safe workplace, a fair wage, and protections against discrimination, violence and harassment
- How to identify stakeholders and establish a stakeholder engagement process
- How to establish labelling, advertising and information handling practices designed to protect the safety and privacy of consumers
The module also covers the range of consequences to Indian organisations that do not meet their ESG reporting obligations, which can include reputational damage, shareholder unrest and monetary penalties.