As Europe tightens ESG disclosure rules and the U.S. dials down its climate rhetoric, India’s Global Capability Centres (GCCs) find themselves in the eye of a regulatory storm. These 1,500-plus operational hubs for Fortune 500 firms are now making high-stakes decisions on carbon targets, compliance frameworks, and brand integrity, effectively becoming ESG architects for their parent companies.

According to EY, GCCs are evolving into ESG Centres of Excellence, going beyond compliance to drive global sustainability agendas. With over 1.66 million professionals, they manage everything from emissions tracking to supply chain risk, positioning India as a nerve centre of corporate climate action.

India’s ESG framework has become increasingly codified. According to India Briefing, it began with voluntary CSR guidelines in 2009, culminating in the mandatory CSR clause of the Companies Act, 2013. SEBI’s Business Responsibility and Sustainability Reporting (BRSR) norms, rolled out in 2021, made ESG reporting compulsory for India’s top 1,000 listed firms. Taxmann notes that BRSR Core, a stricter framework with 42 KPIs, became mandatory for the top 150 companies from FY 2023-24.

While environmental regulation is backed by legacy laws like the Environment Protection Act (1986), governance is anchored by statutes such as the Prevention of Corruption Act (1988) and the Money Laundering Act (2002).

The EU Tightens, the U.S. Rebrands

According to India Briefing, the EU’s Corporate Sustainability Reporting Directive (CSRD) demands granular disclosures on emissions and human rights. The Carbon Border Adjustment Mechanism (CBAM) adds economic weight, applying tariffs on carbon-intensive imports.

Meanwhile, the Trump administration’s return in 2025 has prompted a semantic pivot. According to Bloomberg, U.S. companies are dropping the term “ESG” in response to political backlash. However, Reuters notes that most continue to pursue the same targets under different labels, pushed by investors and global compliance.

This duality – stringent in Europe, symbolic in the U.S. – requires Indian GCCs to decode and align competing frameworks while maintaining operational coherence.

Playbook in Action: Centralised, Data-Driven, Adaptive

According to EY, many GCCs now run centralised ESG units that integrate global reporting frameworks like Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) with India’s BRSR. This consolidation ensures consistent data flows and audit trails.

Real-time metrics are another key lever. According to Inductus GCC, AI and analytics platforms, like the carbon accounting tool from IIM Bangalore, help track Scope 1, 2, and 3 emissions, aligning local and international compliance.

Supply chains are being overhauled, too. With 72% of Gen Z and 77% of millennials demanding sustainable products, GCCs are embedding ESG into procurement, logistics, and waste reduction.

Mind the Gap: Ambition vs. Reality

India’s climate goals are bold, net zero by 2070 and a 45% drop in carbon intensity by 2030. The interim goals include 500 GW of non-fossil energy and 50% renewable power integration.

But the terrain is bumpy. EY flags skill gaps in ESG functions, while also highlighting the dissonance between BRSR and global standards. Inductus GCC points to opaque supply chains as a roadblock, especially for smaller GCCs that also face bandwidth and funding constraints.

Still, EY India’s ESG GCC Survey 2024 reports that as of April 2024, 67% of GCCs are drafting sustainability strategies, 52%  have “proactively” adopted ESG policies and are refining processes to anchor them and 70% are turning to tech partnerships. Materiality assessments and SMART goals are helping focus efforts.

Trump Card: Same Goals, New Language

The Trump administration’s deregulatory stance has triggered linguistic gymnastics in the U.S. ESG landscape. According to Bloomberg, terms like “resilience” and “risk mitigation” are replacing “ESG” to avoid political heat. But as Reuters notes, the targets remain.

For Indian GCCs, especially those serving U.S. clients, this means adapting the language while preserving the outcomes. According to Sweep, many now rely on science-based frameworks like Science Based Targets initiative (SBTi) to track emissions, avoiding ESG branding but delivering ESG impact.

According to PwC, enterprise software used by GCCs is being retooled with sustainability analytics, integrating ESG into everyday operations. What began as compliance reporting is now a strategic asset, boosting efficiency, managing risk, and reinforcing global competitiveness.

This linguistic sleight-of-hand hasn’t dulled the intensity of the mission. GCCs are doubling down on measurable outcomes, from cutting emissions to greening data centres and embedding sustainability into tech stacks. 

India’s ESG framework may still be catching up with global peers in terms of rigour. But its GCCs are sprinting ahead—turning regulatory complexity into business advantage, and emerging not just as executors, but as ESG architects for the world.

In a world of shifting policies and polarised narratives, the one constant is accountability. And increasingly, the map to global ESG compliance runs straight through India’s GCC corridors.

Today, job seekers want more than just a high-paying job. They are looking for work flexibility, meaningful roles, mentorship, autonomy and a positive company culture. To meet these evolving expectations, Global Capability Centres (GCCs) in the country are increasingly offering benefits such as comprehensive healthcare, including mental health support, elder care and on-site childcare. These policies go beyond the flexibility of remote work, helping not only to retain talent but also to boost productivity. 

Take Bengaluru-based Anisha Singh, a young mother and software engineer at a GCC, who considers the on-site childcare facility provided by her employer as the most valuable perk.

“Knowing that my two-year-old is just 500 metres from my desk puts me at peace,” she says. “I can get to him quickly if there’s an emergency and, surprisingly, it’s made me more productive.” 

New mothers make up the largest share of those who step away from their careers. These breaks often lead to employment gaps and added challenges when returning to work. In response, GCCs are working to ensure they don’t lose skilled talent in the process.

The Covid-19 pandemic accelerated a global shift in how we work, and India’s GCCs have been quick to adapt to the changing needs. From remote and hybrid work models to flexible hours and location-independent hiring, they are leading the charge in offering work-life balance. These policies are especially crucial in attracting talent from Tier-2 and Tier-3 cities, expanding the talent pool while supporting decentralisation.

They are offering Employee Assistance Programmes (EAPs) focused on the holistic well-being of the employees with perks like gym subsidies, subscription to wellness apps, insurance with mental health coverage and others. Multigenerational workforce have diverse needs, and while tech giants and multinationals have been offering customised perks and benefits, GCCs are not far behind. Inclusive workplace policies reflect the larger purpose of the organisation, of being empathetic. For instance, mushrooming of GCCs across tier-2 and tier-3 cities has created more women representation in the workforce, as many could take up their jobs without leaving their hometowns.

Talent retention is another challenge that GCCs are addressing by offering a well-defined career planning process including targeted learning opportunities such as upskilling and training to keep pace with the changing job market. Working with teams across geographies and gaining cross-cultural exposure adds value, supports career growth and helps reduce employee turnover. Hands-on learning through real-world challenges and emerging technologies can foster a culture of innovation—especially among Gen Zs in the industry. 

GCCs in India have a mammoth task to attract and retain talent, given that demand for skilled professionals is expected to surpass supply in the coming years. Today, it is essential to constantly upgrade workplace policies to keep pace with the changing needs. With the right focus on innovation, inclusivity and employee development, GCCs are well-positioned to become global talent hubs that not only meet but shape the future of work.