A Comprehensive Study on ESG Enforcement and Sustainable Corporate Transformation in India amidst the Era of Digital Governance

Dispite the rapid expansion of sustainability reporting frameworks worldwide, questions continue to arise regarding whether ESG disclosures genuinely drive sustainable corporate transformation or merely facilitate compliance-oriented reporting practices. In India, regulatory attention intensified following the Securities and Exchange Board of India’s (SEBI) mandate requiring the top 1,000 listed entities by market capitalisation to submit Business Responsibility and Sustainability Reports (BRSR) from FY 2022–23. Collectively, these companies account for over 90% of India’s listed market capitalisation, making ESG disclosures a critical determinant of corporate accountability. Recent assessments indicate that while BRSR adoption has significantly increased reporting volumes, substantial inconsistencies remain in disclosure quality, verification standards, and measurable sustainability outcomes. Simultaneously, India’s digital governance ecosystem—supported by Artificial Intelligence (AI), blockchain-based compliance systems, cloud reporting platforms, and RegTech solutions has expanded considerably, with the country’s digital economy projected to contribute nearly 20% of GDP by 2030. Despite these advancements, concerns relating to greenwashing, fragmented ESG metrics, inadequate third-party assurance, and uneven technological capacities among corporations continue to challenge effective enforcement. Studies indicate that more than 70% of global investors now incorporate ESG considerations into investment decisions, yet empirical evidence linking ESG disclosures with actual environmental and social performance in India remains limited. Against this backdrop, the present study investigates whether India’s evolving ESG enforcement architecture and digital governance mechanisms are capable of facilitating genuine corporate transformation rather than mere disclosure compliance. Through a doctrinal and analytical examination of SEBI regulations, BRSR and BRSR Core frameworks, sustainability reports, policy documents, and emerging literature, the study seeks to identify regulatory gaps and enforcement deficiencies. The research is particularly significant as India advances towards its net-zero commitment by 2070 and strengthens sustainable finance initiatives. The findings aim to contribute to the development of data-driven ESG governance models, robust assurance frameworks, and digitally enabled enforcement mechanisms necessary for long-term corporate sustainability and responsible economic growth.