In an era where sustainability is no longer a buzzword but a boardroom imperative, India’s regulatory blitz against greenwashing marks a pivotal shift towards genuine accountability. As we navigate the complexities of climate change and ethical governance, the Enhanced Sustainability Reporting (ESR) mandates, rolled out in 2024 and fortified through 2025, stand as a beacon of progress.

Yet, they also expose the stark reality: nearly 80% of green claims in the Indian market are misleading or unsubstantiated, eroding consumer trust to a dismal 29%. It’s high time corporate India heeds this warning—greenwashing isn’t just bad PR; it’s a betrayal of stakeholders that could torpedo long-term value.

Greenwashing, the insidious art of inflating environmental credentials to dupe investors and consumers, has long plagued global markets. In India, it’s particularly rampant in high-impact sectors like energy, manufacturing, and fashion, where vague promises of “eco-friendly” practices often mask business-as-usual pollution. The fallout? Not only does it undermine genuine sustainability efforts, but it also distorts market competition, favoring slick marketers over true innovators.

Enter the government’s decisive intervention: starting October 2024, every environmental claim must be backed by verifiable documentation and third-party certification. Mandating digital tools like QR codes linking to audited evidence is a masterstroke—it democratizes transparency, empowering consumers to scan and scrutinize in seconds. This isn’t overregulation; it’s smart governance that aligns corporate narratives with verifiable actions.

The teeth in these rules come from the penalties, which are refreshingly severe. Repeat offenders face fines up to ₹5 million (about USD 60,000) and even criminal prosecution. Such measures send a clear message: sustainability isn’t optional; it’s enforceable.

Coupled with the Securities and Exchange Board of India (SEBI)’s Business Responsibility and Sustainability Report (BRSR) framework, which demands detailed ESG disclosures from top listed companies, these steps are reshaping corporate governance. Non-compliance doesn’t just invite fines—it risks reputational carnage and investor flight. In a market where ESG funds are surging, companies ignoring this could find themselves sidelined by discerning global capital.

But enforcement is only as good as its oversight. The Parliamentary Standing Committee on Finance’s push for a dedicated ESG body with forensic powers is spot-on. By embedding ESG into directors’ fiduciary duties, it ensures that sustainability isn’t siloed in CSR reports but woven into core strategy.

Imagine auditors with the tools to dissect claims, much like forensic accountants probe financial fraud—this could be the game-changer India needs to lead in the global green economy.Of course, challenges remain. Smaller firms might struggle with compliance costs, and the risk of overzealous enforcement could stifle innovation. Policymakers must balance rigor with support, perhaps through subsidies for certifications or streamlined digital platforms. Ultimately, though, these reforms are a net positive. They compel businesses to walk the talk, fostering a culture where ESG compliance drives competitive advantage, not just checkboxes.

India’s ESR crackdown isn’t mere regulatory muscle-flexing; it’s a strategic pivot towards a resilient, trustworthy economy. For corporate leaders, the choice is clear: embrace authentic sustainability or face the consequences. In the end, true green progress will benefit not just the planet, but the bottom line too.