How Indian GCCs Are Emerging as Frontline Architects of Global ESG
Indian GCCs are turning regulatory complexity into business advantage, emerging as global ESG architects—not just executors.
25 JUNE 2025 / 4 min read
As Europe tightens ESG disclosure rules and the U.S. dials down its climate rhetoric, India’s Global Capability Centres (GCCs) find themselves in the eye of a regulatory storm. These 1,500-plus operational hubs for Fortune 500 firms are now making high-stakes decisions on carbon targets, compliance frameworks, and brand integrity, effectively becoming ESG architects for their parent companies.
According to EY, GCCs are evolving into ESG Centres of Excellence, going beyond compliance to drive global sustainability agendas. With over 1.66 million professionals, they manage everything from emissions tracking to supply chain risk, positioning India as a nerve centre of corporate climate action.
India’s ESG framework has become increasingly codified. According to India Briefing, it began with voluntary CSR guidelines in 2009, culminating in the mandatory CSR clause of the Companies Act, 2013. SEBI's Business Responsibility and Sustainability Reporting (BRSR) norms, rolled out in 2021, made ESG reporting compulsory for India’s top 1,000 listed firms. Taxmann notes that BRSR Core, a stricter framework with 42 KPIs, became mandatory for the top 150 companies from FY 2023-24.
While environmental regulation is backed by legacy laws like the Environment Protection Act (1986), governance is anchored by statutes such as the Prevention of Corruption Act (1988) and the Money Laundering Act (2002).
The EU Tightens, the U.S. Rebrands
According to India Briefing, the EU’s Corporate Sustainability Reporting Directive (CSRD) demands granular disclosures on emissions and human rights. The Carbon Border Adjustment Mechanism (CBAM) adds economic weight, applying tariffs on carbon-intensive imports.
Meanwhile, the Trump administration’s return in 2025 has prompted a semantic pivot. According to Bloomberg, U.S. companies are dropping the term "ESG" in response to political backlash. However, Reuters notes that most continue to pursue the same targets under different labels, pushed by investors and global compliance.
This duality - stringent in Europe, symbolic in the U.S. - requires Indian GCCs to decode and align competing frameworks while maintaining operational coherence.
Playbook in Action: Centralised, Data-Driven, Adaptive
According to EY, many GCCs now run centralised ESG units that integrate global reporting frameworks like Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) with India’s BRSR. This consolidation ensures consistent data flows and audit trails.
Real-time metrics are another key lever. According to Inductus GCC, AI and analytics platforms, like the carbon accounting tool from IIM Bangalore, help track Scope 1, 2, and 3 emissions, aligning local and international compliance.
Supply chains are being overhauled, too. With 72% of Gen Z and 77% of millennials demanding sustainable products, GCCs are embedding ESG into procurement, logistics, and waste reduction.
Mind the Gap: Ambition vs. Reality
India’s climate goals are bold, net zero by 2070 and a 45% drop in carbon intensity by 2030. The interim goals include 500 GW of non-fossil energy and 50% renewable power integration.
But the terrain is bumpy. EY flags skill gaps in ESG functions, while also highlighting the dissonance between BRSR and global standards. Inductus GCC points to opaque supply chains as a roadblock, especially for smaller GCCs that also face bandwidth and funding constraints.
Still, EY India's ESG GCC Survey 2024 reports that as of April 2024, 67% of GCCs are drafting sustainability strategies, 52% have “proactively” adopted ESG policies and are refining processes to anchor them and 70% are turning to tech partnerships. Materiality assessments and SMART goals are helping focus efforts.
Trump Card: Same Goals, New Language
The Trump administration’s deregulatory stance has triggered linguistic gymnastics in the U.S. ESG landscape. According to Bloomberg, terms like “resilience” and “risk mitigation” are replacing “ESG” to avoid political heat. But as Reuters notes, the targets remain.
For Indian GCCs, especially those serving U.S. clients, this means adapting the language while preserving the outcomes. According to Sweep, many now rely on science-based frameworks like Science Based Targets initiative (SBTi) to track emissions, avoiding ESG branding but delivering ESG impact.
According to PwC, enterprise software used by GCCs is being retooled with sustainability analytics, integrating ESG into everyday operations. What began as compliance reporting is now a strategic asset, boosting efficiency, managing risk, and reinforcing global competitiveness.
This linguistic sleight-of-hand hasn’t dulled the intensity of the mission. GCCs are doubling down on measurable outcomes, from cutting emissions to greening data centres and embedding sustainability into tech stacks.
India’s ESG framework may still be catching up with global peers in terms of rigour. But its GCCs are sprinting ahead—turning regulatory complexity into business advantage, and emerging not just as executors, but as ESG architects for the world.
In a world of shifting policies and polarised narratives, the one constant is accountability. And increasingly, the map to global ESG compliance runs straight through India’s GCC corridors.
