Parliamentary panel pitches for ESG oversight body to combat greenwashing activities
Parliamentary panel pitches for ESG oversight body to combat greenwashing activities
A parliamentary committee recommends establishing a dedicated oversight body with forensic expertise to actively combat greenwashing, moving beyond the current disclosure-based regime. This specialized agency would enforce penal provisions against fraudulent environmental claims, ensuring that sustainability is integrated into core business strategies rather than serving as mere marketing rhetoric. The panel urges statutory amendments to the Companies Act to explicitly make ESG objectives part of directors’ fiduciary duties. By elevating sustainability to a non-negotiable legal mandate, corporations can be held accountable for genuine corporate responsibility. This shift aims to transition companies from superficial reporting to fundamental ethical practices, reducing the ambiguity that currently allows misleading green claims to persist. These measures are crucial for combating greenwashing because they address the lack of enforceable accountability in current frameworks. Without specialized oversight and clear legal consequences, companies can exploit vague definitions of sustainability to mislead stakeholders. Strengthening investigative capabilities and CSR oversight ensures that environmental promises translate into tangible actions, restoring trust in corporate environmental claims.
Source: realty.economictimes.indiatimes.comPublished on 2025-08-07