Only 29% Indian consumers trust green marketing claims: Report

India’s sustainability and ESG efforts are moving away from marketing-led claims toward regulation-driven and measurable action, according to LS Digital’s year-end report.

The report, From Green Claims to Measurable Impact, finds that only 29% of Indian consumers trust green marketing claims, creating pressure on companies to rely on verified data, disclosures and operational accountability instead of broad sustainability messaging.

The report maps India’s ESG discourse across three platforms. On social media, activity is largely action-driven, with digital activism accounting for 44%, local events 37% and neighbourhood initiatives 19%. Search data shows most users are still learning about ESG, with traditional Indian moral narratives making up 96% of sustainability-related online content. News and blogs are dominated by regulation and verification, with 42% of coverage focused on new rules and 17% on measurable metrics.

The report points to tighter regulations as a key driver of the shift. SEBI’s Business Responsibility and Sustainability Reporting (BRSR) mandate for the top 1,000 listed companies, along with anti-greenwashing penalties of up to Rs 5 million, has made sustainability reporting mandatory rather than voluntary.

Government policy plays a central role, according to the report. National missions and schemes account for 55% of implementation-focused discourse, followed by incentive-led programmes at 33%, regulatory enforcement at 9% and innovation initiatives at 3%.

Policy momentum across clean energy, waste management, packaging and circular economy initiatives has further institutionalised ESG compliance, the study said.

The study notes that companies are increasingly investing in measurable outcomes such as renewable energy use, plastic reduction, waste reuse and circular economy models. However, it highlights a gap between large corporations and MSMEs, which account for nearly 25% of India’s industrial energy consumption but often lack ESG resources and reporting systems.

Cross-sector partnerships involving corporations, governments, NGOs and waste-picker communities are emerging as ways to address these challenges, the report said.

Commenting on the findings, Prasad Shejale, Founder & CEO, LS Digital, said, “India’s sustainability narrative has shifted from intent to evidence. The data clearly shows that measurable impact, verified disclosures, and operational accountability are now the strongest drivers of trust. Green marketing without proof no longer works. Brands that prioritise transparency, adopt digital tracking, and invest in long-term sustainable operations will gain disproportionate advantage, commercially, reputationally, and culturally.”

The analysis is based on the firm’s Quilt methodology, an AI-led framework that uses machine learning to study search, social media and public web data to track ESG trends and behaviour.

The report concludes that India’s future ESG progress will depend on multi-stakeholder partnerships, sustained community engagement and digital transparency tools. It notes that India is projected to generate Rs 40 lakh crore annually from sustainability-linked economic activity by 2050, making the next decade critical for execution at scale.