This capstone project, titled Corporate Climate Disclosures in India – Agentic AIBased Simulation Model to Assess Impact of Multi-Stakeholder Strategies (F.O.R.C.E.), explores a structured, data-driven approach to evaluating corporate sustainability practices within the context of India’s regulatory and corporate landscape. As climate change continues to pose critical challenges worldwide, there is a growing demand for businesses to move beyond surface-level commitments and demonstrate verifiable progress toward sustainability goals. While international frameworks such as the Kyoto Protocol and the Paris Agreement have established global expectations, organisations often falls short in delivering transparent, accountable, and measurable ESG (Environmental, Social, and Governance) outcomes. This project seeks to bridge that gap by developing a robust framework that systematically analyzes Business Responsibility and Sustainability Reports (BRSRs), which are increasingly becoming a key compliance requirement in India.
The Team pursuing this project integrates multiple analytical components to assess the quality, credibility and effectiveness of organizational ESG disclosures by proposing a F.O.R.C.E. framework—short for Forecasting, Oversight, Regulation, Compliance, and Evaluation. This framework is designed to identify gaps between asserted sustainability claims and actual performance, ensuring organizations are not only aligned with international benchmarks such as GRI, TCFD, ICAI, NSE, and SRMM but also held accountable through transparent reporting. Essentially, the framework features four interrelated components: an Assurance Component that validates corporate disclosures and supports the detection of greenwashing; a Regulatory Component that assesses compliance with both local and global ESG mandates; a Corporate Advocacy Component that factors in business objectives and contextual relevance; and an Environmental Impact Component that uses disclosed data to estimate and evaluate real-world CO₂ emissions and other environmental effects. This layered approach allows for a deeper understanding of how corporate strategies align—or diverge—from national and global sustainability priorities.
In addition to traditional report analysis, the project integrates agentic AI tools and advanced text analytics to enhance the accuracy and efficiency of ESG data interpretation. The model also introduces a macro-level CO₂ emissions forecasting module that is often overlooked in corporate sustainability reporting, that leverages company-level data to predict sectoral and economy-wide environmental impacts. Additionally, by embedding a simulation environment grounded in game theory and energy policy modeling, the framework enables organizations to visualize the longterm implications of their sustainability strategies under varying policy scenarios. This dynamic capability transforms ESG reporting from a compliance exercise into a forward-looking strategic tool.
The team had some interesting findings from implementation of this model offering several key insights. First, the framework uncovers significant discrepancies between corporate sustainability narratives and their alignment with recognized ESG standards, offering a pathway for businesses to proactively address these gaps. Second, the use of advanced AI-driven text and data analytics supports deeper, more reliable ESG evaluations, while the integration of diverse data sources improves the precision and consistency of sustainability assessments. Third, by incorporating simulation tools, the project enables companies to anticipate the carbon and financial impacts of different policy choices, strengthening the connection between climate goals and business strategy. Finally, the framework supports continuous refinement through interactive assessments, ensuring sustainability initiatives remain adaptive and grounded in real-world outcomes.
Based on these insights, the team recommends that companies adopt stronger verification processes to combat greenwashing, integrate BRSR data into macro-level environmental forecasting, and align their ESG disclosures with internationally recognized standards. Additionally, the team encourages the use of energy policy simulations to guide the development of actionable climate strategies. From a corporate governance perspective, implementing the F.O.R.C.E. model offers significant benefits: it enhances transparency, strengthens compliance, reduces regulatory and reputational risk, and improves investor and stakeholder confidence.
Ultimately, as ESG considerations become central to long-term business resilience, this project offers a forward-thinking, evidence-based framework to help companies in India—and potentially beyond navigate the complex landscape of sustainability with greater accountability and strategic foresight.