LEGAL CONSEQUENCES OF GREENWASHING CLAIMS: ANALYSING SECURITIES FRAUD, MISREPRESENTATION, VIS-À-VIS ESG AUDITOR RESPONSIBILITY UNDER BRSR CORE FRAMEWORK

AUTHOR – SHIVENDRA NARAYAN, STUDENT AT HIDAYTULLAH NATIONAL LAW UNIVERSITY, RAIPUR

BEST CITATION – SHIVENDRA NARAYAN, LEGAL CONSEQUENCES OF GREENWASHING CLAIMS: ANALYSING SECURITIES FRAUD, MISREPRESENTATION, VIS-À-VIS ESG AUDITOR RESPONSIBILITY UNDER BRSR CORE FRAMEWORK, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (4) OF 2026, PG. 01-05, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract

With environmental, social, and governance (ESG) metrics at the forefront of investment decisions, greenwashing which refers to dissemination of false environmental information, has evolved from a concern in marketing ethics to a legitimate concern in corporate law. The proliferation of ESG disclosures in capital markets has engendered a significant rise in greenwashing claims. In this study, the author examines the legal consequences of greenwashing through the intersecting lenses of securities fraud, civil misrepresentation, and auditor liability, with particular emphasis on India’s Business Responsibility and Sustainability Reporting (BRSR) Core framework mandated by the Securities and Exchange Board of India (SEBI). The study further analyses the mandatory assurance requirements to assess how ESG auditors are increasingly at risk. The author found that SEBI’s “strict comply or explain” policy in its BRSR Core effectively creates a “statutory bridge” to transform voluntary sustainability statements into concrete financial statements.

Keywords: Greenwashing, ESG, BRSR Core, Securities Fraud, Unfair Trade Practices, Assurance Standards, SEBI.