How environmental, social and governance principles are reshaping India’s development landscape

What is ESG Mission?

ESG stands for Environmental, Social and Governance. Originally a framework for assessing corporate behaviour and sustainability performance, the ESG is now expanding into policy-making, governance and mission-mode implementation — especially in the context of sustainable development, climate change commitments and inclusive growth.

Advertisement

In India, ESG principles are increasingly becoming part of the national agenda through initiatives such as:

• Corporate Responsibility mandates
• Sustainable finance regulations (SEBI BRSR norms)
• Net Zero by 2070 pledge
• Decentralised governance and people-centric development

From the Civil Services Examination perspective (Prelims, Mains, Essay, Interview), the ESG provides a multi-dimensional lens to analyse developmental challenges, ethics, governance and sustainability.

Prelims perspective

Key topics to study:

• Definitions: ESG, CSR, SDGs
• National Missions: National Action Plan on Climate Change (NAPCC), Net Zero target
• SEBI’s BRSR (Business Responsibility and Sustainability Reporting)
• ESG-linked financial instruments: Green Bonds, Climate Funds
• Global Indices: ESG Index, Environmental Performance Index (EPI), Global Climate Risk Index

Sample Prelims MCQ:

1. Consider the following statements with reference to ESG:
2. ESG is a mandatory reporting framework for all listed companies in India.
3. It covers aspects related only to environmental sustainability.
4. SEBI has introduced BRSR to promote ESG disclosures.

Which of the above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 3 only ✅

(d) 1, 2 and 3

Mains perspective

Paper-wise relevance:

• GS II: Governance, Welfare Schemes, Transparency
• GS III: Environment, Sustainable Development, Economy
• GS IV: Ethics in Public Service, Corporate Ethics
• Essay: Topics on Environment, Development vs Sustainability, Corporate Responsibility

Analytical perspectives

Environmental perspective

E of ESG focuses on climate change, natural resource use, pollution, waste management and biodiversity.

Indian context: Forest Rights Act, Compensatory Afforestation, NGT, Urban Heat Islands, River Pollution, EIA processes.

 Model analytical question (GS III):

1. Discuss how ESG principles can serve as a tool for achieving India’s environmental goals under the Paris Agreement.

Model answer (intro + points):

• ESG offers a structured approach to promote corporate environmental accountability.
• Encourages investment in green energy and reduces carbon footprints.
• Supports national missions like FAME, UJALA and Smart Cities through private sector alignment.
• Regulatory frameworks like SEBI’s green finance policies help direct capital into climate-resilient sectors.

Social perspective

Covers labour practices, inclusivity, gender equity, community engagement and human rights.

Relevant in: Labour Codes, SDG 5 (Gender Equality), tribal welfare, digital divide, health & education schemes.

Model analytical question (GS II):

1. Evaluate the role of ESG compliance in advancing social justice and inclusive growth in India.

Model answer (structure)

Intro: ESG acts as a catalyst for embedding equity into development.

Body:

• Better labour welfare under ESG increases worker productivity and dignity.
• Social metrics incentivise companies to invest in education, skilling, and health.
• Case study: Tata Steel's gender-neutral hiring, ITC's rural engagement.

Conclusion: ESG ensures that growth becomes people-centric and rights-respecting.

Governance perspective

Refers to ethics, transparency, anti-corruption measures, diversity in boards, stakeholder rights.

In Civil Services: Linked to Probity in Governance, Citizen-Centric Administration, and Corporate Regulation.

Model analytical question (GS IV):

1. Corporate governance through ESG lens ensures ethical and sustainable capitalism. Do you agree? Justify.

Model answer points:

• Governance is the backbone of ESG – ensures transparency and accountability.
• Builds trust among investors and public stakeholders.
• Reduces risks of scams (e.g., IL&FS, Satyam) by enforcing due diligence.
• Promotes long-term over short-term gains, aligned with ethical business practices.

Essay paper relevance

Sample topics:

1. Sustainable growth is not an option, it’s a responsibility
2. Profit with purpose: The ESG imperative
3. Environment and Ethics in 21st Century Governance

Key suggestions:

Start with a real-world example (e.g., Amazon deforestation vs ESG investing shift)

Use a multi-sectoral approach: environment + social equity + governance ethics

End with a visionary note: ESG as a foundation for Amrit Kaal and Viksit Bharat @2047

Ethics (GS IV) case study angle

Case study prompt example:

You are a senior IAS officer handling industry clearances in a tribal region. A major company applying for clearance has strong ESG scores but is facing resistance from local communities over forest rights. How will you proceed?

Model framework:

1. Apply ethical principles: justice, empathy, long-term sustainability
2. Balance ESG credentials with participative governance
3. Involve Gram Sabhas; recommend environmental audit with community inclusion
4. Avoid top-down decision-making

Conclusion

ESG is no longer optional—it is a strategic necessity for India’s development journey.

For civil services aspirants, ESG offers a fertile ground to integrate:

• Contemporary policy debates
• Ethics in action
• Economy-environment balance
• Inclusive and participative governance