author(s)
Jyotirmoy Koley

abstract
The integration of Environmental, Social, and Governance (ESG) frameworks in India has experienced significant growth in recent years, as organizations across various sectors recognize their potential impact on sustainability and corporate performance. This study critically evaluates the effectiveness of ESG implementation in India by examining the current state of adoption, assessing its impact on corporate performance and sustainability outcomes, identifying key challenges and barriers, comparing India's ESG landscape with other emerging markets, and offering policy recommendations. This study employed a descriptive and qualitative methodology, utilizing secondary data from research articles, ESG reports, and online sources. These findings suggest that India's regulatory landscape has strengthened ESG disclosure requirements, with a shift towards mandatory reporting for large companies. However, challenges remain in the standardization of metrics and enforcement. The adoption of renewable energy and sustainability initiatives is on the rise; however, issues related to carbon footprint reduction and waste management persist. Corporate Social Responsibility (CSR) spending has increased owing to legal mandates, with a growing emphasis on labour rights, diversity, and community engagement. Governance practices are improving with enhanced board independence, anti-corruption measures, and shareholder activism. Sector-specific adoption varies with the banking and IT sectors, whereas the manufacturing sector lags in comprehensive ESG integration. Key challenges include the lack of standardized metrics, focus on short-term profits, limited investor awareness, and policy enforcement gaps. Compared to other emerging markets, India's ESG adoption is advancing but lags behind countries like Brazil in certain aspects. Prospects include strengthening regulatory frameworks, incentivizing ESG investments, leveraging technology for ESG analytics, and enhancing stakeholder education and engagement. The study concludes that, while India has made significant progress in ESG adoption, particularly in regulations and corporate awareness, challenges in standardization, enforcement, and comprehensive integration across sectors persist. Addressing these gaps can enable India to fully realize the potential of ESG practices for sustainable development and improve corporate performance.