How to Build a Corporate ESG Strategy in India: A Complete Implementation Guide

ESG is no longer a branding exercise for Indian companies. With BRSR Core mandatory for the top 150 listed companies, CCTS compliance live for major industrial sectors, and export markets demanding carbon disclosures, ESG is now deeply operational. Here is how to build a corporate ESG strategy that works in the Indian context.

Step 1: Conduct a Materiality Assessment

Start by identifying which ESG topics are most material to your business and its stakeholders. For Indian manufacturing companies, material issues typically include Scope 1 and 2 GHG emissions, water consumption, occupational health and safety, supply chain labour practices, and community impact from operations.

A double materiality lens is increasingly expected: both how ESG risks affect your company financially and how your company's activities affect the environment and society. This aligns with BRSR Core, CSRD for EU-facing companies, and TCFD guidelines.

Step 2: Establish a Baseline

You cannot set credible targets without measuring where you stand. Baseline activities include a full GHG inventory (Scope 1, 2, and selected Scope 3 categories), water use and wastewater discharge data, energy consumption by source, waste generation and disposal data, and social metrics such as employee turnover, training hours, and diversity ratios.

For listed companies, BRSR provides a structured framework for this data gathering. The BRSR Core indicators require third-party assurance, so data quality and auditability must be built in from the start.

Step 3: Set Targets

ESG targets must be specific, time-bound, and scientifically credible. For emissions, Science Based Targets initiative (SBTi) alignment is increasingly expected by institutional investors. SBTi requires companies to set reduction targets in line with limiting global warming to 1.5°C. For Indian companies with global supply chain exposure, SBTi validation significantly enhances credibility.

Other target areas include renewable energy percentage, water intensity reduction, zero waste to landfill milestones, and gender diversity ratios at senior leadership levels.

Step 4: Integrate Carbon Credits into Your Strategy

Carbon credits are not a substitute for emissions reduction — they are a tool to address residual emissions that cannot be eliminated in the short term. A credible ESG strategy deploys carbon credits as part of a mitigation hierarchy: reduce first, then offset residuals with high-quality verified credits.

Indian companies have access to both domestic CCCs under CCTS and international voluntary credits via Verra VCS and Gold Standard. The right choice depends on the purpose — regulatory compliance, net-zero claims, or supply chain disclosures.

Step 5: Disclose and Report

Indian listed companies must file BRSR disclosures with their annual report. Top 150 companies must also provide third-party assured BRSR Core data. Additionally, companies with EU export exposure must prepare for CBAM reporting, and companies seeking foreign institutional investment benefit from TCFD-aligned climate disclosures.

Csquare supports Indian companies at every stage of this process — from initial materiality assessment and GHG baseline through to carbon credit sourcing and BRSR reporting. If you are ready to build or strengthen your ESG strategy, contact us to start.