(MENAFN- KNN India) Kerala, Oct 3 (KNN) The Kerala government has launched a comprehensive Environment, Social and Governance (ESG) Policy, aiming to become the first state in India to fully integrate ESG principles into industrial growth.

The initiative seeks to drive sustainable development, boost transparency, and attract global investors.

The policy introduces a strong incentive structure to encourage industries to adopt ESG practices. These include 100 per cent reimbursement of tax on capital investment for five years, a 10 per cent subsidy on fixed capital investment up to Rs 50 lakh, a 20 per cent margin in government procurement for ESG-compliant local enterprises, and subsidised financing for existing industries transitioning to ESG compliance within five years.

The Kerala State Industrial Development Corporation (KSIDC) will also provide low-cost loans for ESG machinery and technologies.

The policy outlines ambitious renewable energy goals, targeting 100 per cent renewable energy by 2040 and carbon neutrality by 2050. Investments will focus on solar parks, floating solar projects, wind farms, hydropower plants, and biomass initiatives. Public-private partnerships, research and development, and workforce training will play a key role.

For micro, small, and medium enterprises (MSMEs), the policy adopts the Zero Defect, Zero Effect (ZED) philosophy, promoting high-quality manufacturing with minimal environmental impact.

Support measures include subsidies, quality certifications, and global market access under the“Made in Kerala” branding.

A simplified ESG reporting framework aligned with national and international standards (BRSR, GRI, SASB, TCFD) will be introduced, ensuring transparency and comparability.

SEBI-regulated ESG rating providers will evaluate industries, with top performers recognised at state and national levels. A digital portal will publish ratings and awardees to enhance investor confidence.

KSIDC has been designated as the nodal agency for implementation. The policy, effective from June 2025 to 2030, will undergo continuous review and adaptation to sectoral needs.

(KNN Bureau)

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