In order to reconcile environmental concerns with industrial development, governance, and social responsibility, the Kerala government implemented an environmental, social, and governance (ESG) policy. In addition to presenting a framework for sustainable development, ethical business conduct, and open reporting, the ESG policy promotes Kerala as a state that will achieve net carbon neutrality by 2050 and a 100% renewable energy base by 2040. The policy will go into effect in October 2025 and last for five years.

The state government’s emphasis on renewable energy is a multipronged strategy meant to address many facets. This includes endeavours to improve energy efficiency for cheaper power production as well as efforts to boost the production of renewable energy, which will reduce greenhouse gas and other pollutant emissions. Furthermore, by offering training and educational opportunities, the government is dedicated to promoting local engagement and skill development in communities.

Research & development expenditures are given top priority in order to advance technology in the field of renewable energy with the goal of making it more long-term sustainable and affordable. Creating jobs in the renewable energy sector is a vital part of these initiatives, which support prosperity and economic growth. Because they lower greenhouse gas emissions and fight climate change, renewable energy sources, including solar, wind, hydro, and biomass, are essential to environmental sustainability initiatives, according to the policy.

Solar parks, floating solar installations, rooftop solar systems, wind farms, minor hydroelectric plants, and biomass energy facilities are among the proposed infrastructure items included. It draws attention to how important public-private collaborations are for knowledge sharing, technological transfer, and innovation. The policy describes how governmental agencies can work together to advance environmental goals.

Green funding would be facilitated, and ESG policies will be monitored and implemented by the Kerala State Industrial Development Corporation. The Kerala State Pollution Control Board will be in charge of raising awareness, creating policies, and keeping an eye on how well industries are performing environmentally. ESG principles will be included in waste management, energy efficiency, and urban design as part of the Kerala Sustainable Urban Development Project. The Department of Environment and Climate Change will enforce environmental standards and require ESG compliance for clearances.