India’s ESG conversation is changing from green claims to hard proof

New Delhi: LS Digital has released a year-end report, From Green Claims to Measurable Impact, arguing that India’s sustainability narrative is moving away from aspirational storytelling towards regulation-led accountability and measurable outcomes in operations and packaging.

The report said glossy green claims are increasingly being challenged by consumers, communities and regulators, with brands now expected to “show the data” and demonstrate verifiable impact. It flagged a trust deficit in the market, noting that only 29% of Indian consumers trust corporate sustainability claims, which is pushing companies towards third-party verification, digital transparency tools and harder metrics instead of broad promises.

The analysis is powered by LS Digital’s proprietary Quilt methodology, an AI-led framework that applies machine learning across search, social and public web data to identify ESG themes, trends and behavioural signals.

A key driver behind the shift, the report said, is regulatory acceleration. It pointed to SEBI’s Business Responsibility and Sustainability Reporting (BRSR) framework, which mandates structured ESG reporting for the top 1,000 listed companies, and anti-greenwashing penalties of up to Rs 5 million for unsubstantiated claims. The report said this has moved sustainability reporting from a voluntary exercise to a measurable business requirement aligned with global standards.

Mapping India’s ESG discourse, the report said social media conversations skew action-oriented, led by government initiatives (28%), operational innovations (24%) and community participation (23%). 

Search behaviour, meanwhile, suggests many consumers are still in the discovery phase, with “moral storytelling traditions” accounting for 96% of sustainability-related online discourse, indicating that awareness-building remains an important layer even as scrutiny rises. In news and blogs, regulation dominates, with 42% of coverage focusing on policy evolution and 17% emphasising quantifiable metrics.

The report positioned the government as a central “sustainability architect”, citing national and state-level frameworks shaping implementation, including the Green India Mission and PM Surya Ghar Muft Bijli Yojana, alongside enforcement and compliance measures. It broke policy-driven implementation down into national missions (55%), incentive-based programmes (33%), regulatory enforcement (9%) and innovation initiatives (3%).

On the corporate side, LS Digital said the credibility premium is shifting to brands that can quantify operational change through process efficiency, waste-to-value models, packaging innovation and circular economy implementation. It cited examples of “hard metrics” being foregrounded in corporate communication, including HUL’s reported 97% reduction in CO₂ emissions and Nestlé India’s management of 25,600 metric tons of plastic packaging.

The report also highlighted community participation as a key engine of sustainability momentum, driven by digital activism, local events and neighbourhood-led initiatives. Within community-led discourse, hashtag movements such as #BrownToGreen and #WedZero form a significant share, alongside mobilisation through cyclothons, clean-up drives, and locality-specific programmes.

A distinct India-specific signal flagged in the report is cultural resonance, where sustainability adoption strengthens when aligned with traditions and community practices, rather than positioned as an imported framework. The report argues that embedding ESG in culturally familiar narratives can improve uptake and retention, particularly at an awareness stage where consumers are still learning and searching by category.

However, LS Digital warned of an uneven implementation reality, calling it a “two-speed ecosystem”. Large corporates, it said, have stronger ESG systems supported by digital tracking, third-party assurance and dedicated teams. MSMEs, estimated at around 634,000 units and consuming about 25% of industrial energy, face resource constraints, limited reporting infrastructure and a lack of standardised frameworks tailored to their needs. The report said cross-sector partnerships, including government–industry–NGO coalitions and collaborations with informal waste-picker communities, are emerging as a key solution.

Commenting on the findings, Prasad Shejale, Founder and CEO, LS Digital, said, “India’s sustainability narrative has shifted from intent to evidence. The data clearly shows that measurable impact, verified disclosures, and operational accountability are now the strongest drivers of trust. Green marketing without proof no longer works.”

The report said the next phase of India’s ESG journey will depend on partnerships that accelerate sector-wide implementation, community engagement that sustains public mobilisation, and digital transparency tools that build trust at scale. It also pointed to circular economy strategies as a material lever, citing an estimated 44% emissions reduction potential by 2050, and projected that sustainability-linked economic activity could generate Rs 40 lakh crore annually by 2050.