Sustainability Policy Template for India

A Sustainability Policy outlines how an organization plans to operate responsibly while balancing environmental protection, social welfare, and economic growth. It sets clear goals and guidelines for reducing environmental impact, managing resources efficiently, and supporting local communities - all aligned with India's Environmental Protection Act and National Green Tribunal guidelines.

Beyond just environmental compliance, these policies help companies meet ESG reporting requirements, attract green investments, and build trust with stakeholders. Indian businesses use them to demonstrate commitment to national missions like Swachh Bharat and climate action goals, while creating measurable targets for energy conservation, waste reduction, and sustainable supply chain practices.

Organizations need a Sustainability Policy when expanding operations, seeking ESG investments, or responding to new environmental regulations under India's corporate governance framework. It's particularly crucial when pursuing green certifications, bidding on government contracts that require environmental commitments, or entering markets where sustainability credentials matter.

The policy becomes essential before launching major infrastructure projects, implementing renewable energy initiatives, or establishing manufacturing facilities that must comply with pollution control norms. Many companies create or update their Sustainability Policy when preparing for mandatory Business Responsibility and Sustainability Reporting (BRSR) or applying for green finance under RBI guidelines.

• Basic Environmental Sustainability Policy: Focuses on environmental compliance, waste management, and resource conservation - ideal for small and medium enterprises meeting minimal regulatory requirements.
• Comprehensive Corporate Sustainability Policy: Covers environmental, social, and governance aspects, including community development and stakeholder engagement - suited for listed companies following SEBI's BRSR framework.
• Sector-Specific Sustainability Policy: Tailored for industries like manufacturing, IT, or construction, addressing unique environmental challenges and regulatory requirements under PCB guidelines.
• Supply Chain Sustainability Policy: Emphasizes sustainable procurement, vendor compliance, and green logistics - essential for companies with complex supply networks.

• Board of Directors: Approves and oversees the Sustainability Policy, ensuring alignment with corporate strategy and ESG goals
• Sustainability Officers: Draft, implement, and monitor policy compliance, coordinate with department heads on green initiatives
• Legal Team: Reviews policy alignment with environmental regulations, SEBI guidelines, and Companies Act requirements
• Department Managers: Execute sustainability measures within their units, report progress against targets
• External Stakeholders: Including investors evaluating ESG performance, regulators monitoring compliance, and NGOs tracking environmental impact

• Environmental Assessment: Audit current practices, resource usage, and environmental impact across operations
• Regulatory Review: Map applicable environmental laws, SEBI guidelines, and industry-specific requirements
• Stakeholder Input: Gather feedback from department heads, employees, and key stakeholders on sustainability goals
• Resource Planning: Calculate budget, timeline, and personnel needed for implementing sustainability initiatives
• Documentation Setup: Use our platform to generate a customized Sustainability Policy that includes all mandatory elements and meets compliance requirements
• Implementation Strategy: Create clear timelines, assign responsibilities, and establish monitoring mechanisms

• Policy Scope: Clear definition of environmental, social, and governance objectives aligned with Companies Act requirements
• Regulatory Framework: References to relevant environmental laws, SEBI guidelines, and industry-specific standards
• Implementation Strategy: Detailed action plans, measurable targets, and timeline for sustainability initiatives
• Roles and Responsibilities: Clear designation of sustainability committee members and their duties
• Monitoring Mechanisms: Procedures for tracking, reporting, and reviewing sustainability performance
• Compliance Procedures: Steps for ensuring adherence to environmental regulations and reporting requirements
• Review and Updates: Process for periodic policy revision and stakeholder consultation

A Sustainability Policy differs significantly from a Corporate Social Responsibility Policy, though they're often confused. While both address organizational responsibility, their scope and legal requirements vary considerably under Indian law.

• Legal Framework: Sustainability Policies focus on environmental compliance and ESG reporting under SEBI guidelines, while CSR Policies specifically address the mandatory 2% profit spending requirement under Section 135 of the Companies Act
• Scope of Coverage: Sustainability Policies encompass environmental impact, resource management, and long-term ecological goals, while CSR Policies primarily target community development and social welfare projects
• Implementation Structure: Sustainability Policies require environmental management systems and monitoring mechanisms, whereas CSR Policies need dedicated committees and annual activity reports
• Stakeholder Focus: Sustainability Policies engage with environmental regulators and green investors, while CSR Policies interact more with local communities and social development partners