The environmental commitments in the New Delhi Declaration are a response to the urgent need for progress on the United Nations Sustainable Development Goals (SDGs)

The recent 2023 G20 Summit in New Delhi marked a moment in the global pursuit of Environmental, Social, and Governance (ESG) goals.  G20 leaders  prioritise sustainable development with a robust integration of ESG principles into the broader economic and developmental agenda.

In response to the pressing need for progress on the United Nations Sustainable Development Goals (SDGs), the G20 leaders, as outlined in the New Delhi Declaration, have pledged to embrace low greenhouse gas (GHG) and low-carbon emissions pathways. Recognising the macroeconomic risks associated with climate change, this commitment encompasses initiatives such as designing a circular economy, implementing clean and sustainable energy transitions, and preserving ecosystems. Notably, the declaration emphasises international collaborations for hydrogen research and technology, acknowledging hydrogen’s role in the shift toward cleaner energy sources. Additionally, the inclusion of India’s LiFE (Lifestyle for Sustainable Development) strategy underscores a grassroots approach to sustainability, encouraging individual and community participation in achieving environmental SDGs.

In the social sphere, the New Delhi Declaration places a strong emphasis on equitable growth and social inclusivity. G20 leaders commit to sustaining Official Development Assistance (ODA) to support developing nations, recognizing its pivotal role in achieving social equity and sustainable development. The declaration also highlights the importance of narrowing gender gaps and boosting women’s participation in the economy. Aligned with corporate social responsibility (CSR) programs, these initiatives focus on areas such as uplifting rural communities and promoting STEM education for girls, ensuring that the ‘Social’ component of ESG is not only sustainable but also equitable and inclusive.

Governance reforms, a core aspect of the New Delhi Declaration, aim to enhance corporate accountability. The establishment of a global biofuel alliance and a USD 1 billion investment fund for energy transition underscores the G20’s commitment to governance structures supporting sustainable economic growth. The declaration also emphasises the pivotal role of digital infrastructure and artificial intelligence (AI) in achieving governance objectives, recognising them as key enablers in streamlining processes, enhancing transparency, and facilitating informed decision-making.

The alignment of the New Delhi Declaration with India’s recent legal and regulatory developments in the ESG domain is notable. India’s proactive integration of ESG principles into its legal framework, including mandatory ESG reporting for top-listed companies by the Securities and Exchange Board of India (SEBI), positions Indian corporates at the forefront of the global ESG movement. The focus on digital infrastructure and AI in governance, as highlighted in the declaration, aligns with India’s ongoing efforts to enhance efficiency and transparency through digitalisation in governance processes.

The New Delhi Declaration, embodying a comprehensive understanding of the ESG framework, establishes a precedent for future international cooperation. Its focus on multilateral financing, digital public infrastructure, artificial intelligence, and international taxation expands the scope of ESG goals, integrating them into the fabric of global economic and technological advancement. The declaration’s success hinges on tangible actions taken by G20 nations to fulfill these commitments, requiring concerted efforts across all sectors of society. As the world observes, the G20’s strategic direction in ESG policymaking has the potential to catalyse a paradigm shift towards a more sustainable and equitable global future.