Tackling Greenwashing: Reforms in ESG Disclosures

A Sebi member voiced concerns over greenwashing and misleading ESG disclosures at the ESG Summit. Addressing these issues requires enhanced regulatory oversight and legislative changes. As the sustainable finance market grows, it is imperative for companies and regulators to coordinate for more sustainable economies and better environmental practices.

A member of the Securities and Exchange Board of India (Sebi) has raised alarms over the prevalence of greenwashing and false ESG-related claims by companies.

At the ESG Summit organized by FICCI, Sebi Whole-Time Member Amarjeet Singh highlighted the need for regulatory strengthening and legislative amendments as the sustainable finance sector experiences rapid growth.

He pointed to instances where manufacturing and automobile sectors have misrepresented their environmental impact and recycling efforts. Singh emphasized the importance of ethical standards and regulations to ensure transparency and accountability in ESG disclosures.

(With inputs from agencies.)