In recent years, the Environmental, Social, and Governance (ESG) framework has evolved from a buzzword to a boardroom priority—especially for India’s top conglomerates. Faced with global investor expectations, changing regulatory mandates, and rising climate risks, India Inc. is no longer asking if they should embrace ESG—but how soon and how deep.
From legacy business houses to new-age industrial giants, ESG is now being woven directly into strategy, operations, and stakeholder engagement. Here’s how the country’s leading corporates are driving this transformation:
- ESG as a Strategic Growth Lever, Not a Compliance Burden
Companies like Tata Group, Reliance Industries, Adani Group, and Mahindra & Mahindra have moved beyond compliance-led sustainability. They are embedding ESG into long-term growth plans—with defined board oversight, ESG-specific KPIs, and dedicated leadership roles (like CSOs and Heads of Sustainability).
For example, Mahindra Group has committed to becoming carbon neutral by 2040, while also investing heavily in electric mobility and green manufacturing. Reliance Industries, meanwhile, has announced a $10 billion green energy investment roadmap, including solar giga factories and hydrogen energy projects.
- Investor Pressure Driving Transparency and Reporting
ESG ratings and disclosures are increasingly impacting access to global capital. Over $30 trillion globally is now allocated to ESG-focused investments—and India’s top conglomerates are responding.
Many have adopted global frameworks like GRI, SASB, and TCFD, and are voluntarily publishing sustainability and integrated reports. Infosys and Wipro were among the first Indian companies to report under GRI standards and commit to science-based climate targets.
The Securities and Exchange Board of India (SEBI) has also mandated the top 1,000 listed companies to publish Business Responsibility and Sustainability Reports (BRSR), pushing ESG to the forefront of corporate governance.
- Operationalizing ESG: Clean Energy, Supply Chains, and Circularity
On-the-ground action is key. Many conglomerates are now reconfiguring supply chains, production processes, and energy sourcing to align with ESG goals:
- Tata Steel is piloting low-carbon steelmaking processes using hydrogen.
- Godrej Group has committed to zero waste-to-landfill operations and extensive green building adoption.
- Adani Green Energy has become one of the largest renewable energy developers in the world, targeting 45 GW of renewable capacity by 2030.
- Social Impact and Inclusive Development
The “S” in ESG is also gaining traction. Conglomerates are focusing on workforce diversity, health & safety, skilling, and rural upliftment.
- Larsen & Toubro (L&T), for instance, has integrated diversity and inclusion metrics into its talent strategy.
- Hindustan Unilever runs large-scale livelihood and sanitation programs across India, closely linking business growth with community development.
- Governance: From Policy to Accountability
Good governance is at the heart of ESG credibility. Indian firms are introducing board-level ESG committees, linking executive compensation to sustainability targets, and improving whistleblower policies.
For example, ITC Limited has set up a robust ESG Governance Structure chaired by the Executive Management Committee, ensuring strategic alignment across all business units.
ESG and the Road Ahead for Indian Business
The ESG journey is not without challenges—especially in aligning legacy systems, fragmented data, and evolving regulatory landscapes. But with growing global scrutiny and national ambitions like India’s Net Zero 2070 target, the direction is clear.
As the climate crisis intensifies and stakeholder capitalism gains ground, Indian conglomerates are positioning ESG as a core differentiator, not just a responsibility.
The CARE Connect
The complexity of implementing ESG across multi-sector conglomerates demands a new kind of collaborative forum—precisely what CARE 2025 will provide this September 10 –11 in New Delhi.
The expo will feature India’s most innovative business groups sharing practical frameworks for cross-business sustainability integration. Through carefully designed collaborative sessions, participants will:
- Discover practical governance models that bridge diverse business units
- Access proven methodologies for sustainability synergy identification
- Connect with peers facing similar multi-sector ESG challenges
- Build partnerships that accelerate implementation
As India’s conglomerates continue evolving their approach to ESG, CARE 2025 offers a unique platform to transform complexity into opportunity and build truly sustainable business portfolios that drive both financial performance and national development.
The transition from standalone initiatives to integrated ESG systems is underway. Leaders are already emerging.
Join the conversation.
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