ESG Global Vision

Corporate Governance Policy

In force

Every Indian company and a foreign company (which has a place of business in India), which fulfils any one of the below mentioned criteria during the immediately preceding financial year is required to mandatorily comply with the CSR Rules:

1. Net worth of INR 5,000,000,000 (USD 66,666,667 approx.) or more; or
2. Turnover of INR 10,000,000,000 (USD 133,333,333 approx.) or more; or
3. Net Profit of INR 50,000,000 (USD 666,667 approx.) or more.

• All such companies are mandatorily required to set up a CSR Committee and spend in a given financial year, at least 2% of their average net profits made during 3 immediately preceding financial years.
• The CSR committee is required to formulate and recommend to the board of the company, a CSR Policy indicating the activities/projects to be undertaken by the company and monitor the said activities/projects.
• The board's annual report on CSR for each financial year requires CSR Committee’s composition and policy, detailed disclosures, including those on unspent amounts, amounts available for set off and administrative overheads in a prescribed form.

Corporate Governance Policy

In force

Every Indian company 

A company’s annual report should include a report on steps undertaken for conservation of energy, utilising alternate sources of energy, technology absorption, product improvement, cost reduction etc. and include a Director’s Responsibility Statement stating that the directors had devised proper systems to ensure compliance with the provisions of all applicable laws.

Corporate Governance Policy

In force

Top 1000 listed companies (by market capitalization) of India  

From the financial year commencing on April 1, 2022, it is mandatory for such companies to file a Business Responsibility Report reflecting disclosures relating to environmental compliances (energy consumption, water withdrawal, air emissions, waste management, sustainable sourcing), social parameters (well-being of employees, quantifying gender and social diversity, performance and career development policies, accessibility of workplaces, equal opportunity), governance policies (anti-corruption, anti-bribery, training and awareness programs) etc

Environmental Policy

In force

All establishments in India

• The Air Pollution Act lays down a mechanism to monitor air pollutants, set standards for emitters and devise plan for clean air. The Government of India has set up pollution control boards at central and state level and conferred powers and functions to such established bodies to regulate the water pollution and proper implementation of the Air Pollution Act.
• All polluting industries are required to seek timely consent from concerned pollution control body prior to commencement of operations.

Environmental Policy

In force

Energy plants producing hydrogen and ammonia

• The Government of India has introduced the Green Hydrogen Policy to promote domestic production of green hydrogen and ammonia, the ‘cleaner’ alternative for use in oil refineries, fertiliser plants and steel units, by using renewable sources of power.
• The Government of India will grant waiver of inter-state transmission charges for a period of 25 years to producer of green hydrogen and green ammonia for projects commissioned before June 30, 2025.
• The Government of India is in the process of setting up a single portal for all statutory clearances and permissions required for setting up and operating such production facilities.

Environmental Policy

The Green Energy Rules is currently not in force.  It will come into force on a date to be notified by the Government of India in its official Gazette.

All entities electing to purchase and consume renewable energy

• The Green Energy Rules aim at encouraging entities and large-scale energy consumers, including industries, to source their power from renewable energy sources.
• The Government of India through the Union Power Ministry has formulated ‘Renewable Purchase Obligation’, a mechanism under which the consumers have to purchase certain percentage of their electricity consumption from renewable energy sources.
• A central nodal agency will be notified by the Government of India which will operate a single-window green energy open access system for renewable energy.

Social Policy

In force

Every Indian establishment. ER Act is not applicable in cases affecting the terms of a woman’s employment in complying with any legal requirements of providing special treatment to women; or any special treatment accorded to women in connection with birth/expected birth/terms relating to retirement/marriage/death.

• Every employer is required to pay equal remuneration for same work to men and women workers and provide protection against discrimination of women workers on the ground of sex.
• The employer is restricted to create any terms and conditions in the contract of service or work of labour contrary to the provisions of the Equal Remuneration Act.

Social Policy

In force

Every Indian establishment

The Disability Act provides the framework for employment of persons with disability. An equal opportunity policy is to be formulated by every establishment detailing measures undertaken to ensure non-discrimination of disabled persons in matters of employment.

Social Policy

In force

Every Indian establishment

• The Transgender Act provides the framework for employment of transgender persons and their welfare. Every establishment is required to implement all measures for providing safe working environment for transgender persons without any discrimination.
• An equal opportunity policy is to be formulated by every establishment detailing measures undertaken to ensure non-discrimination of transgender persons in matters of employment.

Social Policy

In force

Every Indian factory whereon:

1. 10 or more workers are working, or were working on any day of the preceding twelve months, and any part of manufacturing process is being carried on with the aid of power; or
2. 20 or more workers are working, or were working on any day of the preceding twelve months, and any part of manufacturing process is being carried on without the aid of power; but does not include a mine subject to the operation of the Mines Act, 1952 or a mobile unit belonging to the armed forces of the union, railway running shed or a hotel/restaurant/eating place.

• Under the Factories Act, working conditions are regulated for manufacturing units. The Factories Act contains provisions relating to safety, health and welfare of the employees employed in the factory.
• Provisions relating to working hours, minimum and maximum age limit, duties and responsibilities of employer, etc. are included as well in the Factories Act.

Social Policy

In force

ll premises wherein any trade, business or profession is carried out. All commercial establishments operating within each State are regulated by the respective State’s Establishments Act. 

• The Establishments Act regulates the operation of commercial establishments with respect to working hours, payment of wages, overtime, leaves, holidays, terms of service, employment conditions applicable to woman employees, and such other employment aspects of employees working in such commercial establishment.
• Every commercial establishment that commences its operation must apply for a registration license from the concerned authority under the respective State’s Establishments Act within the prescribed time and renew it periodically.

Social Policy

In force

Every Indian industrial establishment carrying on any business, trade, manufacture or distribution of goods and services irrespective of number of workmen employed therein. Every person employed in an establishment for hire or reward including contract labour, apprentices and part-time employees to do any manual, clerical, skilled, unskilled, technical, operational or supervisory work, is covered by the Industrial Disputes Act. The ID Act does not apply to persons subject to the Air Force Act, 1950, the Army Act, 1950 and the Navy Act, 1957. Persons employed for police service, prison and mainly in a managerial or administrative capacity or supervisory employees drawing wages exceeding INR 10,000 (USD 133 approx.) per month are outside the ambit of the ID Act.

• The Industrial Disputes Act is formulated to ensure fair and equal terms between employer and the employee by settling the disputes that arise through negotiations, aims to promote industrial harmony and peace and prevent unauthorized strikes and lockouts.
• To maintain cordial relations between the employer and employee, the Industrial Disputes Act provides for various investigation and settlement mechanisms for an industrial dispute.
• The Industrial Disputes Act also provides for adequate compensation to the work force on account of closure or lay off or retrenchment.

Social Policy

In force

Every place of employment as notified in a Schedule under the Wages Act, that employees more than 1000 personnel in a State.

• The Wages Act secures the welfare of workers by providing for minimum wages to them in certain areas of employment as identified under the Wages Act, for example woollen carpet making, rice mill, tobacco manufactory, plantation, mica works, public motor transport, tanneries, oil mills etc.
• The Government of India is empowered to fix and revise the minimum wage in such employment areas and fix the number of working hours and rest days to prevent exploitation of workers. It also fixes the overtime rate for the employees with a fixed minimum wage.
• A Central Advisory Board has been set up by the Government of India to ensure proper implementation of the Wages Act.

Social Policy

In force

Every industrial establishment wherein 100 or more workmen are employed or were employed on any day of the preceding 12 months unless appropriate government notifies the application to any industrial establishment with less than 100 employees.

• The Standing Orders Act defines the conditions of employment for the workers employed in an establishment.  The Standing Orders Act seeks to establish smooth working relations between employer and workmen and minimise the exploitation of workmen.
• The Standing Orders Act regulates the conditions of employment, classification of employees, working hours, attendance, suspension, termination etc.
• Every employer is required to define standing orders as per the provisions of the Standing Orders Act by including information relating to employee classification, shift working, suspension, termination, actions for misconduct, redressal mechanism, maintenance of employee records, etc. and get the standing orders certified from the labour commissioner having jurisdiction over the establishment.

Social Policy

In force

Every establishment wherein 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour and to every contractor who employs or employed 20 or more workmen on any day of the preceding 12 months unless appropriate government notifies the application to any establishment or contractor with less than 20 workmen.

CLRA Act is not applicable to establishments in which work only of intermittent or casual nature is performed, as decided by the appropriate government.

Most State Governments have increased the applicability of the CLRA Act within their respective State to establishments employing 50 or more workmen.

• The Contract Labour Act regulates the functioning of contract labourers and prevents their exploitation by the employer. It ensures that proper working conditions are provided to contract labourers.
• Central and State Advisory Boards are set up to deal with matters arising out of the administration of the Contract Labour Act.
• The Contract Labour Act lays down procedure for licensing of labour contractors and registration of establishments employing contract labour with the labour commissioner having jurisdiction over the establishment.

Social Policy

In force

All employers and establishments

• The Bonded Labour Abolition Act provides for the abolition of bonded labour system to prevent economic and physical exploitation of weaker sections of public.
• The Bonded Labour Abolition Act also provides that any agreement, custom, tradition or contract by virtue of which any person, family member or dependant of such person is required to do any bonded labour, is void and inoperative.
• Any debt, mortgage of property or credit of bonded labourer is deemed to be extinguished.
• State Governments have set up Vigilance Committees to for the implementation of the Bonded Labour Abolition Act.

Social Policy

The Social Security Code is currently not in force.  It will come into force on a date to be notified by the Government of India in its official Gazette.

Every employee (other than an apprentice engaged under the Apprentices Act, 1961) employed by an establishment as notified in a Schedule under the Social Security Code by Government of India. However, employees of Armed Forces are not covered by the Social Security Code.

• The Social Security Code subsumes, amends and consolidates 9 labour legislations relating to social security with the goal to extend social security to all employees and workers, including those outside the traditional employer-employee relationship, to ensure access to health care, maternity benefits and provide income security, insurance cover etc.
• The Social Security Code provides for compulsory registration of every unorganised, gig and platform workers to avail the benefits provided under various schemed framed under the Social Security Code.

Social Policy

In force

All employers and establishments

• The object of the Employees’ Compensation Act is to provide for the payment of compensation by employers to their employees for injury(ies) suffered by them due to accident while in employment.
• If an employee contracts an occupational disease while in employment, it is also treated under the Employees’ Compensation Act as injury caused by accident.
• The Employees’ Compensation Act covers the dependents of a deceased employee in case of death in the course of employment.
• The Employees’ Compensation Act also puts in place the amount that is to be paid to the employee according to the intensity of the injury.

Social Policy

In force

Every mine, factory, and establishment in which 10 or more persons are employed, or were employed on any day of the preceding 12 months.

The Maternity Benefit Act provides for maternity benefits for women in cases of child-birth, adoption, miscarriage, etc.

Social Policy

In force

All employers and establishments

• The POSH Act provides protection to women against sexual harassment (whether by a man or a woman) at the workplace and for prevention and redressal following complaints of sexual harassment.
• The redressal mechanism as provided in the POSH Act is in the form of Internal Complaints Committee constituted for all complaints from workplaces employing 10 or more workers.
• Local Complaints Committee is constituted at the State or District level to deal with complaints from workplaces employing less than 10 workers or by a domestic worker or when the complaint is against the employer.

Social Policy

In force

States have enacted   Labour Welfare Fund Acts which are applicable in each respective State.

• The Labour Welfare Fund Act provides for the contribution by an employer to a Labour Welfare Fund for promoting the welfare of labourers.
• Respective State Governments have constituted the ‘Labour Welfare Fund’ which consists of fines realised from employees, unpaid accumulations, penal interest paid, voluntary donations, sum borrowed, loans etc., which are realised by the respective State’s Labour Welfare Board to finance welfare activities for the labourers.

Social Policy

In force

Every child who has not completed 14 years of age, every adolescent who has completed 14 years of age but not completed 18 years of age and every establishment including shop, commercial establishment, workshop, farm, hotel etc.

• The Child Labour Act prohibits the engagement of children in all occupations and adolescents in hazardous occupations and processes.
• The Government of India has set up a Technical Advisory Committee for the purposes of identifying occupations and processes deem unfit for children and adolescents.
• The Child Labour Act provides for the number of hours of work, period of work, overtime, health and safety, holidays etc. to regulate the conditions of employment of an adolescent.

Social Policy

In force

Every establishment wherein and every contractor who employs or employed 5 or more inter-state migrant workers on any day of the preceding 12 months.

• The Migrant Workers Act regulates the employment of inter-state migrant workers by providing for their conditions of service. Under the Migrant Workers Act, every establishment/contractor who wishes to employ inter-state migrant workers must get itself registered with the registering officer as appointed by the appropriate government which creates a system of accountability.
• The Migrant Workers Act provides for provisions including remuneration payable, hours of work, fixing wages, holidays and other conditions of employment of migrant workers.

Social Policy

In force

Every establishment and every factory which employees 10 or more persons. The Employees Insurance Act is not applicable to an employee whose salary exceeds INR 21,000 (USD 280 approx.) per month.

• The Employees Insurance Act enables financial support to employees in case of disablement or death due to sickness, maternity and employment injury. The Government of India has established Employees’ State Insurance Corporation (“ESIC”) under the Employees Insurance Act to grant relief to the employees in case of emergencies of abovementioned nature.
• The employer makes contribution to the ESIC on behalf of the employees, and the employees can avail medical and cash benefits in the event of disablement or death due to sickness, maternity and employment injury.