The Parliamentary Standing Committee on Finance has suggested creating a broad-based legal framework for ESG (Environmental, Social, and Governance) standards in India. The panel further argued for the necessity of shifting beyond voluntary disclosures and establishing an enforceable system to achieve genuine corporate accountability. One of the recommendations is to be an independent ESG oversight mechanism within the Ministry of Corporate Affairs (MCA), which would ensure disclosures, deter greenwashing, and penalize with respect to fraudulent assertions. The committee also suggested the use of the Companies Act, 2013, to include ESG requirements within the fiduciary duties of company directors so that sustainability becomes part of the law. The panel suggested sector-wise ESG standards and further help to competent MSMEs to implement a sustainable approach regarding tackling the industry-specific issues. There would also be companies having independent committees on ESG at the board level like audit committees. Furthermore, MCA will be required to have an ESG separate chapter in the annual report since FY 2025-26, to monitor national progress. Another facet identified by the committee was the need to tighten up regulatory bodies such as the NFRA and the SFIO as a way of boosting supervision, investigation, and enforcement capabilities.