ESG PERFORMANCE OF INDIA’S LISTED COMPANIES: THE ROLE OF AI

Abstract

This study examines the Environmental, Social, and Governance (ESG) performance of Indian listed companies, emphasizing the increasing role of Artificial Intelligence (AI) in improving sustainability initiatives, compliance, and corporate decision-making. With the Securities and Exchange Board of India (SEBI) mandating ESG disclosures through the Business Responsibility and Sustainability Report (BRSR), Indian companies are under growing pressure to enhance their ESG strategies. This research systematically analyzes ESG scores, sectoral performance, and corporate sustainability activities, identifying the top-performing companies and industries based on publicly available ESG ratings. The study explores how AI-driven tools are being leveraged for emissions tracking, risk assessment, sustainability reporting, and governance automation, offering insights into their effectiveness in enhancing ESG transparency and performance.Findings indicate that companies with strong ESG commitments—particularly in IT, finance, and automobile sectors—demonstrate better governance practices, environmental responsibility, and social impact. AI adoption appears to support these efforts by improving data accuracy, identifying ESG risks, and streamlining compliance with SEBI’s BRSR framework. However, significant sectoral variations reveal challenges in AI integration, including inconsistencies in ESG data collection and limited adoption in resource-intensive industries such as energy and manufacturing. These findings highlight the potential of AI to enhance ESG implementation while also underscoring the need for standardized reporting frameworks and sector-specific strategies.By providing a sector-wise analysis of ESG performance and AI adoption, this study contributes to the understanding of India’s evolving sustainability landscape. It offers valuable insights for corporate leaders, policymakers, and investors seeking to align ESG practices with regulatory expectations and long-term business sustainability.