India’s technology and banking giants are setting global benchmarks in ESG performance, while state-owned energy firms and heavy industries struggle to meet net zero targets. The widening gap is reshaping capital access, competitiveness and the future of corporate sustainability in India.
Technology drives India’s ESG leadership
Infosys has achieved carbon neutrality in India for six consecutive years under PAS 2060 standards, with 39.6 per cent of its workforce women and nearly 30m sq ft of green-certified office space. Tata Consultancy Services has reduced emissions by 80 per cent since 2016, sourced 74 per cent of its electricity from renewables in FY24, and aims for net zero by 2030.
Wipro and HCL Technologies also publish detailed BRSR disclosures, aligning with SEBI’s ESG reporting framework. These IT firms demonstrate that sustainability attracts both talent and international capital, establishing them as benchmarks for corporate sustainability in India.
Banking sector leads on sustainable finance
The banking industry in India is integrating ESG into core strategy. HDFC Bank targets carbon neutrality by FY2032 and invests heavily through its Parivartan programme. ICICI Bank has financed 1.8GW of renewable energy projects and empowered more than 12m women via self-help groups.
Axis Bank was the first to create a board-level ESG committee, reporting ₹48,412 crore of sustainable finance in FY25. By contrast, mid-tier lenders such as IndusInd Bank and Bajaj Finance show limited progress in green financing, highlighting uneven adoption.
Energy and heavy industry lag behind
India’s public sector energy companies face structural hurdles. ONGC has pledged net zero by 2038, BPCL by 2040 and IOCL by 2046, but remain constrained by hydrocarbon dependence. Coal India, which supplies four-fifths of the country’s coal, offers only limited solar projects and rehabilitation programmes.
In metals, Tata Steel has targeted net zero by 2045 and piloted hydrogen-based steelmaking. JSW Steel and Hindalco have announced decarbonisation roadmaps, but timelines fall short of global benchmarks. These industries are most exposed to the EU Carbon Border Adjustment Mechanism (CBAM), with New Delhi estimating nearly $8bn of Indian exports at risk.
Regulation and markets accelerate ESG adoption
SEBI BRSR Core compliance is mandatory for India’s top 1,000 listed companies, requiring independent assurance of nine ESG metrics by FY27. Supply-chain disclosure, initially slated for 2025, is delayed to 2026. The Reserve Bank of India has instructed banks to assess climate risks in lending portfolios, embedding ESG in financial supervision.
Markets reward leaders: the Nifty100 ESG Index delivered an 18.3 per cent one-year return to August 2025, ahead of the Nifty 50 at 17.9 per cent. Reliance Industries’ $2.9bn dual-currency loan, supported by its $10bn renewable and green hydrogen investment, illustrates how ESG credentials lower funding costs.
India’s ESG fault lines
The challenge lies in execution. Technology and banking leaders deliver measurable, assured results. Energy and heavy industry firms publish ambitious transition plans, but bottlenecks in renewables, storage and hydrogen infrastructure threaten delivery.
Laggards already face penalties: credit rating agencies incorporate ESG factors into outlooks, and exporters without credible decarbonisation plans risk exclusion from global supply chains. For India, balancing affordable power for 1.4bn citizens with carbon-constrained markets is the defining policy challenge.
As one banker puts it: “ESG in India is no longer about reputation—it is about survival in global capital markets.”
Pallab Bhattacharya is the former Executive Director – Chief of Corporate Communications at ONGC.
A senior journalist, he is the founder and Editor-in-Chief of Newscript