The Kerala state cabinet has approved a landmark Environmental, Social and Governance (ESG) Policy to boost sustainable investments in India. The five-year policy (till 2030) focuses on eco-friendly, low-pollution industries that align with Kerala’s ecological priorities.
To attract investors, Kerala is offering strong incentives: 100% capital investment reimbursement for five years, a 10% subsidy on fixed capital (up to ₹50 lakh), and concessional loans through KSIDC, the nodal agency for implementation.
The policy mandates ESG reporting aligned with BRSR, GRI, and SASB frameworks, ensuring transparency. It also emphasizes inclusion, gender diversity, labour standards, and sets climate goals of 100% renewable energy by 2040 and carbon neutrality by 2050.
By aligning with global ESG norms, Kerala aims to position itself as a leading sustainable investment hub, attracting institutional investors and climate-aligned capital. If implemented well, this policy could become a model for other Indian states.