Role of ESG Compliance in Enhancing Environmental Policy Effectiveness in India: A Sectoral Study of Selected Industries

Abstract

Environmental issues currently are of great concern and cannot be overlooked by any company for their sustenance. Company’s activities always have an impact on both society and environment to a greater extent. So ESG compliance is very much needed to assess the impact of such activities on the surrounding environment. This study examines how Environmental, Social, and Governance (ESG) compliance shapes the effectiveness of India’s environmental policy, analysing results on a sector-by-sector basis. Following SEBIs launch of the Business Responsibility and Sustainability Reporting framework, ESG metrics have moved to the centre of corporate performance evaluation. By linking official government statistics and company disclosures from Energy, Heavy Industry, Textiles, Information Technology, and Brick Kilns, the study correlates ESG scores with concrete green outcomes-renewable capacity growth, emissions intensity, and pollution incidents. Its empirical backbone includes BRSR submissions, records of corporate social-responsibility spending, and flagship policy archives such as data from the National Mission for Enhanced Energy Efficiency. Evidence indicates that industries reporting stronger ESG practices outpace their peers in measurable environmental gains, whereas segments with shallow disclosure remain stagnant. Consequently, the paper calls for targeted enforcement that matches each sectors unique profile, for independent oversight using satellite analytics, and for positive incentives that reward transparent reporting. Taken together, these insights point ESG discipline as a force-multiplier for India’s overarching climate and pollution-control ambitions.