In India the regulatory framework related to environmental, social and governance (ESG) is not found in any one piece of legislation but comes under various pieces of legislation, including: the Factories Act, 1948; Environment Protection Act, 1986; Air (Prevention and Control of Pollution) Act, 1981; Water (Prevention and Control of Pollution) Act, 1974; Hazardous Waste (Management, Handling and Transboundary Movement) Rules, 2016; Companies Act, 2013 (Companies Act); Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations); Prevention of Money Laundering Act, 2002; Prevention of Corruption Act, 1988; and laws with respect to the payment of minimum wage, bonus, gratuity, welfare activities, health and safety, etc.
From 1 October 2024, an ESG scheme will be required to invest at least 65% of its AUM in companies which are reporting on comprehensive BRSR, and providing assurance on BRSR Core disclosures, and the balance AUM may be invested in companies making BRSR disclosures.
