Environmental, Social, And Governance (ESG) Compliance

Dr Subhashini A, Faculty incharge in Government Law College, Salem

Jerom Stuward J, Government Law College, Salem

Sri Gugan S, Government Law College, Salem

ABSTRACT

The concept of Environmental, Social, and Governance (ESG) compliance has gained prominence as businesses are increasingly held accountable for their ethical practices and sustainability efforts. This research paper examines the growing significance of ESG in corporate governance, focusing on its role in shaping business strategies and legal frameworks. ESG compliance is not just a voluntary commitment but a legal necessity in many jurisdictions, driving businesses to align with global sustainability standards and responsible business practices. Environmental concerns, such as reducing carbon footprints and waste management, are coupled with social responsibilities, including human rights, diversity, and fair labor practices. Governance, which ensures transparency, accountability, and ethical management, plays a pivotal role in ensuring companies adhere to these standards. Non-compliance with ESG norms can result in reputational damage, legal sanctions, and financial penalties. This paper delves into the evolving regulatory landscape surrounding ESG, highlighting key legislation, global reporting standards, and the challenges businesses face in meeting compliance requirements. By exploring case studies of companies that have successfully integrated ESG into their corporate frameworks, this research provides a comprehensive overview of how ESG compliance can foster long-term sustainability, profitability, and stakeholder trust. The findings aim to offer insights into the strategic importance of ESG compliance for both legal scholars and business practitioners.

Keywords: ESG compliance, corporate governance, sustainability, regulatory framework, ethical business practices