Parliamentary Panel Calls for Oversight Body to Fight Greenwashing
New Delhi: A parliamentary panel has recommended that the corporate affairs ministry establish an ESG oversight body to actively address greenwashing and implement penalties for fraudulent ESG claims. Greenwashing generally refers to misleading claims by companies regarding the environmental benefits of a product or service. The principles of ESG (Environmental, Social, and Governance) are integrated into the Companies Act of 2013. In its report presented to Parliament on Monday, the Standing Committee on Finance noted the ministry’s reluctance to create a dedicated ESG oversight body, arguing that the current disclosure-based system—supported by company board accountability and existing penalties—sufficiently monitors ESG…