ESG, Net-Zero & Sustainability Timeline
Global & India Perspective
A comprehensive overview of the evolution of sustainability frameworks, reporting standards, and investment strategies
The Evolution of Sustainability: From Ethical Investments to Integrated Reporting
The journey of Environmental, Social, and Governance (ESG) principles, Net-Zero commitments, and sustainability reporting has evolved significantly over decades. What began as simple ethical screening has transformed into comprehensive frameworks guiding business strategy, investment decisions, and regulatory compliance worldwide. This timeline captures key milestones in this evolution, highlighting global developments, India-specific initiatives, and the changing landscape of sustainable investment strategies.
Early Roots & Conceptual Development (Pre-1990s)
Early Ethical Investing
Religious groups like Quakers avoided investments in "sin stocks" including slavery, alcohol, and tobacco based on moral values.
Social Movements Drive Change
Civil Rights, Anti-Apartheid, and Anti-Vietnam War movements fuel Socially Responsible Investing (SRI) with focus on negative screening and shareholder activism.
First Earth Day
First Earth Day (April 22) mobilizes millions (estimated 20 million in the US), significantly boosting environmental awareness.
First Modern SRI Fund
Pax World Fund launched in the US, often cited as the first modern SRI mutual fund, managing a few million USD initially.
UN Conference on Human Environment
Conference in Stockholm leads to the United Nations Environment Programme (UNEP), marking a significant step in global environmental governance.
India's Foundational Environmental Laws
Water (Prevention and Control of Pollution) Act, 1974 & Air (Prevention and Control of Pollution) Act, 1981 establish foundation for pollution control boards (CPCB, SPCBs).
Environment Protection Act
India enacts the Environment (Protection) Act, empowering the central government to take measures to protect and improve the environment.
Brundtland Commission Report
UN World Commission on Environment and Development publishes "Our Common Future," defining "sustainable development" as meeting present needs without compromising future generations' ability to meet theirs.
Formalization of Reporting & Early Climate Action (1990s)
Rio Earth Summit
UN Conference on Environment and Development establishes key frameworks:
- United Nations Framework Convention on Climate Change (UNFCCC)
- Convention on Biological Diversity (CBD)
- Agenda 21 (action plan for sustainable development)
- UNEP Finance Initiative (UNEP FI)
GRI Founded & Kyoto Protocol
Global Reporting Initiative (GRI) founded to create a standardized sustainability reporting framework. Kyoto Protocol adopted, setting binding GHG emission reduction targets for 37 industrialized countries and the EU.
India's Environmental Focus
Industrial environmental compliance remains the primary focus in India. Philanthropic Corporate Social Responsibility (CSR) begins to grow among larger corporations.
Investment Strategy Evolves
SRI continues primarily through negative screening. First ESG index launched (Domini 400 Social Index, later MSCI KLD 400 Social Index, 1990). Early adopters begin exploring correlation between ESG practices and financial performance.
Emergence of ESG & Voluntary Frameworks (2000s)
Carbon Disclosure Project (CDP)
CDP launched with backing from 35 institutional investors managing $4 trillion AUM to request climate data from major corporations globally. Now covers climate, water, and forests.
ESG Term Coined
UN Global Compact's "Who Cares Wins" report formally coins the term "ESG" (Environmental, Social, Governance), arguing its relevance to long-term investment value.
Kyoto Protocol Enters Force
The Kyoto Protocol officially enters into force, starting the implementation of binding emission reduction targets.
UN PRI Launched
UN-supported Principles for Responsible Investment (PRI) launched with initial backing from investors representing ~$6.5 trillion AUM. Signatories commit to incorporating ESG into investment analysis and ownership practices.
Rise of Green Building Certifications
Certifications like BREEAM (UK, 1990), LEED (US, ~1998), ENERGY STAR (US, 1992) gain significant traction, embedding sustainability in real estate development and management.
Voluntary CSR Guidelines
India's Ministry of Corporate Affairs (MCA) issues "Corporate Social Responsibility Voluntary Guidelines," encouraging companies to go beyond compliance.
ESG Integration Begins
UN PRI launch marks the beginning of mainstreaming ESG Integration – systematically considering ESG factors alongside financial analysis. Growth in specialized research providers. CDP data allows investors to start assessing climate risk more systematically.
Maturing Frameworks, Mandates & Global Agreements (2010s)
SASB Founded
Sustainability Accounting Standards Board (SASB) founded by Jean Rogers to develop industry-specific, financially material ESG disclosure standards for investors.
National Voluntary Guidelines
MCA issues National Voluntary Guidelines (NVGs) on Social, Environmental & Economic Responsibilities of Business – a structured framework based on 9 principles.
Mandatory Business Responsibility Reporting
SEBI mandates Business Responsibility Reporting (BRR) based on NVGs for the Top 100 listed companies by market capitalization, marking a key step towards mandatory ESG disclosure in India.
Companies Act Mandates CSR Spending
India's Companies Act, 2013 mandates CSR spending (2% of average net profits of preceding 3 years) for companies meeting specific thresholds. Annual CSR spending in India now typically exceeds ₹20,000 Crore (~$2.4 Billion USD).
Landmark Year for Sustainability
Three major developments:
- UN Sustainable Development Goals (SDGs): 17 global goals adopted for 2030 agenda
- Task Force on Climate-related Financial Disclosures (TCFD): Established by FSB to create climate disclosure recommendations
- Paris Agreement (COP21): Limiting warming to well below 2°C, pursuing 1.5°C
Paris Agreement Enters Force
The Paris Agreement enters into force on November 4, after being ratified by 55 Parties accounting for 55% of global GHG emissions.
BRR Mandate Expanded
SEBI extends Business Responsibility Reporting mandate to the Top 500 listed companies by market capitalization.
TCFD Final Recommendations & Climate Action 100+
TCFD releases its final recommendations (Governance, Strategy, Risk Management, Metrics & Targets). Climate Action 100+ investor initiative launched to engage the world's largest corporate GHG emitters.
Integrated Reporting
SEBI suggests voluntary adoption of Integrated Reporting (<IR>) framework for top 500 companies (FY 2017-18).
National Guidelines & BRR Expansion
MCA updates NVGs, releasing National Guidelines on Responsible Business Conduct (NGRBCs). SEBI expands BRR mandate to the Top 1000 listed companies. Government launches National Clean Air Programme (NCAP).
ESG Integration Mainstreams
ESG Integration becomes widespread. TCFD recommendations drive investor focus on climate risk. Thematic Investing booms (renewable energy, water, gender equality funds). Rise of Impact Investing targeting measurable outcomes. Green Bond market grows significantly. First dedicated ESG mutual funds launched in India (2019).
Acceleration, Net-Zero Pledges & Regulatory Convergence (2020s onwards)
Net-Zero Commitments Surge
Rapid increase in Net-Zero targets by countries and corporations. Science Based Targets initiative (SBTi) gains prominence for validating corporate climate targets.
ISSB Formation & COP26
Value Reporting Foundation (VRF) formed by merger of SASB and IIRC. IFRS Foundation announces International Sustainability Standards Board (ISSB) at COP26.
BRSR & Net-Zero 2070
SEBI introduces Business Responsibility and Sustainability Report (BRSR) framework. PM Modi announces "Panchamrit" targets including Net Zero by 2070.
ISSB Consolidation
VRF consolidates into the IFRS Foundation, bringing SASB Standards under the ISSB. India submits updated NDC and Long-Term Low Emission Development Strategy.
ISSB Standards & CSRD
ISSB issues inaugural standards. EU Corporate Sustainability Reporting Directive (CSRD) enters force. SEBI mandates phased introduction of assurance on BRSR Core KPIs.
Global Adoption & NDC 3.0
Jurisdictions worldwide adopt ISSB standards. SEBI defers mandatory value chain ESG disclosures. NDC 3.0 cycle: Parties submit updated NDCs by Feb 2025.
Global Developments (2020s)
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ISSB Standards Released (2023)
IFRS S1 (General Requirements) & IFRS S2 (Climate) create global baseline for investor-focused sustainability reporting
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EU CSRD Implementation
Phased reporting starts in 2025 (FY2024 data), eventually covering ~50,000 companies with mandatory assurance
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Global Assurance Standards
IAASB finalizes ISSA 5000 & IESBA finalizes ethics standards (IESSA) for sustainability assurance
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NDC 3.0 Cycle (2025)
Parties submit new/updated NDCs by February 2025, outlining targets for 2035
India Developments (2020s)
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BRSR Framework (2021)
SEBI introduces Business Responsibility and Sustainability Report, mandatory for Top 1000 listed entities from FY 2022-23
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Panchamrit Targets (2021)
PM Modi announces Net Zero by 2070, 500 GW non-fossil energy by 2030, 50% renewables by 2030
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Mandatory Assurance (2023)
SEBI mandates phased introduction of assurance on BRSR Core KPIs, starting with Top 150 listed entities
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Industry Standards (2024)
SEBI issues detailed Industry Standards on Reporting of BRSR Core for consistency, applicable from FY 2024-25
Investment Strategy Evolution (2020s)
ESG Integration Mainstream
ESG investing becomes mainstream globally, though faces political headwinds in some regions. Sustainable Fund assets peak at ~$3.3T in 2024, with Europe dominating market share.
Climate Finance Focus
Massive focus on Climate/Net-Zero Aligned Investing. GSSSB market booms with annual issuance approaching ~$1 Trillion by 2024. Development of Transition Finance strategies to support high-emitting sectors' decarbonization.
India ESG Market Growth
ESG Mutual Fund AUM in India grows significantly, crossing ₹10,000 crore by early 2025. First Sovereign Green Bonds issued (2023). BRSR Core data enables more robust ESG integration by Indian asset managers.
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ESG Reporting
Environmental, Social & Governance strategy development and implementation.
- BRSR compliance for Indian companies
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- BRSR Core value chain reporting preparation
Net Zero Reporting
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- Carbon footprint assessment (Scope 1, 2 & 3)
- Science-based target setting aligned with SBTi
- Net Zero transition pathway development
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Green Audit Services
Detailed assessment of environmental performance with actionable recommendations.
- Environmental performance assessment
- Resource efficiency evaluation
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- Actionable improvement recommendations
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Key Differentiator
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