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2007RBI publishes a framework for acceptance of green deposits.
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2012SEBI adopts NVGs for business responsibility report.
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2015RBI’s annual publication recognizes climate-related financial risks.
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2016RBI joins Network for Greening of Financial Systems (NGFS).
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2019RBI updates priority sector lending targets.
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2021RBI publishes a draft on ‘Disclosure framework on climate-related financial risks, 2024’.
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2023Ministry of Finance announced the formation of a task force on sustainable finance.
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2024SEBI issues new Business Responsibility & Sustainability Reporting (BRSR) requirements.
Elevating standards of accessibility
RBI published a framework for the acceptance of green deposits, which provided guidelines for banks to accept deposits from individuals and institutions for the purpose of funding green projects.
National Voluntary Guidelines
In 2012, SEBI adopted National Voluntary Guidelines (NVGs) for business responsibility reports, which encouraged companies to report on their environmental, social, and governance (ESG) performance.
National Voluntary Guidelines
Financial institutions are increasingly recognizing climate-related financial risks and the need to manage them. RBI’s annual publication recognized these risks for the first time in 2015.
Network for Greening the Financial System
In 2016, RBI joined the Network for Greening the Financial System (NGFS), a global network of central banks and financial regulators focused on promoting sustainable finance.
Disclosure Framework on Climate-Related Financial Risks
In 2021, RBI published a draft on the ‘Disclosure framework on climate-related financial risks, 2024’, which proposed a set of guidelines for banks and financial institutions to disclose their exposure to climate-related risks.
Task Force on Sustainable Finance
In 2023, the Ministry of Finance formed a task force on sustainable finance in India to develop a roadmap for the growth of sustainable finance in the country.
SEBI's Business Responsibility and Sustainability Reporting Requirements
In 2024, SEBI issued new Business Responsibility and Sustainability Reporting (BRSR) requirements, making it mandatory for the top 1,000 listed companies in India to disclose their ESG performance. This is a significant step towards promoting sustainable finance in India.
Few years ago:
Compliance &
finance functions
were unfamiliar
with GRI &
dismissed it as
non-mandatory.
Sentiment:
“We’ll adopt it
only if it’s
mandatory;
otherwise,
mediocrity in
reporting suffices.”
Result:
Introduction of
GRI (or similar
standards) was
blocked initially.
FY23:
GRI, under the
guise of BRSR,
gained entry,
causing a scramble
for data and stress
due to previous
procrastination.
securities regulators,
including IOSCO
Standards, aligning SEBI’s
framework with international
best practices.
Standards, leading to
comprehensive climate-
related financial disclosures.
Standards, aligning SEBI’s
framework with international
best practices.
transparency, investor
confidence, & smoother
capital flows.
adaptation challenges for
companies and stakeholders.
to provide guidance during
the transition phase.
processes to monitor &
enforce compliance with
new requirements.
