What is Greenwashing as per SEBI Guidelines?

Greenwashing involves making deceptive or exaggerated claims about a company’s environmental benefits to appear more "eco-friendly" than it truly is.

As of April 2026, SEBI has enforced the BRSR Core (Business Responsibility and Sustainability Reporting) framework to curb this practice. It mandates that the top 1,000 listed companies provide "reasonable assurance" and independent audits on key environmental metrics like carbon footprint and water usage.

Under the Companies Act, 2013, submitting falsified sustainability data in these mandatory filings can now be classified as fraud.

This elevates greenwashing from a mere marketing gimmick to a severe legal risk, potentially holding directors personally liable for deceptive ESG disclosures.