Indian conglomerates expand ESG programmes as climate risks intensify

A September 8, 2025 report found Indian conglomerates including L&T, Vedanta and RPG Group expanding sustainability programmes across energy, emissions, water, biodiversity and social inclusivity. The shift signals ESG moving from compliance checkbox to core business imperative, with investors and regulators likely to demand greater transparency.

A report published September 8, 2025, found Indian conglomerates accelerating ESG commitments as extreme weather events grow more frequent. Companies including Larsen & Toubro, Vedanta, RPG Group and affiliates have launched and expanded sustainability programmes covering energy, emissions, water, biodiversity, waste and social inclusivity. L&T rolled out a "Green Campus" initiative this year under which all permanent campuses adopt integrated measures: optimising energy use, emissions reduction, water conservation, biodiversity protection, waste management and climate resilience efforts.

The shift affects major Indian industrial firms and their value chains. Vedanta has embedded ESG metrics into core business performance, tracking carbon emissions, water reuse and biodiversity restoration, and launched the VEDAS sustainability academy with AXA Climate to train more than 1,00,000 employees. Within RPG Group, CEAT produces "Sustainmax" tyres made from roughly 90% sustainable material, KEC International built India's first digital substation in Gujarat reporting 8 to 10% lower transport emissions, and Raychem RPG offset 222 tonnes of CO2 equivalent.

Indian firms should treat ESG as a core business imperative rather than a compliance checkbox, embedding sustainability across manufacturing, infrastructure and human capital to future-proof against regulatory, physical climate and stakeholder risks. As companies like L&T and Vedanta integrate ESG metrics into performance and reporting, investors and regulators will likely demand greater transparency and accountability. The broad-based shift could accelerate capital flows into renewable energy, circular economy, green infrastructure and sustainable materials.

Key figure — Training scale: Vedanta's VEDAS academy targets more than 1,00,000 employees