Abstract

The incorporation of Environmental, Social, and Governance (ESG) into corporate governance frameworks has become an essential prerequisite for companies globally.The research paper examines the legal structure that mandates environmentally responsible business conduct by company law. It delves into the underlying principles, governance structures, findings, and compatibility with the Sustainable Development Goals (SDGs). The introduction provides an overview of the significance of ESG aspects of corporate governance, setting the stage for an analysis of the legal environment. Following that, the section on regulatory frameworks explores the existing legislation, legal cases, and disclosure standards that influence the incorporation of ESG factors into corporate law. The research dwells on the evolving legal obligations that corporations are required to adhere to protect against social and environmental hazards, while simultaneously promoting transparency and responsible conduct. The paper examines the potential obstacles, including the need for clear ESG compliance requirements and having to balance the interests of shareholders and stakeholders within the company. Additionally, it evaluates India’s current corporate law framework. The paper concludes by underscoring the significance of integrating ESG with broader sustainability objectives. It promotes the implementation of collective action to address challenges and accelerate progress towards a more environmentally sustainable, equitable, and fair global economy.

Keywords: ESG, Corporate Governance, SDG, Corporate Law.