Top 20 ESG Stocks in India – A Personal Guide to Sustainable Investing

Introduction

When I first started studying the stock market, I was only focused on returns. I’d look at price-to-earnings, growth charts, and quarterly results. But over time, I noticed something bigger happening. Investors around me weren’t just asking “How much profit did this company make?” They were asking “What kind of impact is this company leaving on the world?”

That shift is what ESG is all about. ESG stands for Environmental, Social, and Governance—three pillars that tell us how responsibly a company is run. And today, ESG stocks in India are more than a trend; they’re becoming a part of serious, long-term investing.

In this guide, I’m going to walk you through my perspective on ESG investing, explain why it’s gaining so much momentum, and share insights into the top 20 ESG stocks in India. I’ll keep this conversational and practical, almost like we’re sitting across the table and going through these stocks together.

Top 20 ESG Stocks in India

Part 1: Understanding ESG Investing

What Are ESG Stocks?

When I explain ESG stocks to friends, I keep it simple. Think of it as looking beyond profits. A company might be making good money, but if it’s polluting rivers, exploiting workers, or hiding governance issues, the success won’t last. ESG helps filter such risks.

• Environmental: How eco-friendly is the company? Does it cut carbon emissions, manage waste, and save resources?

• Social: How does it treat employees, customers, and communities?

• Governance: Are leadership decisions transparent? Are promoters trustworthy?

In short, ESG stocks balance purpose with profit. And in India, they’re starting to stand out.

Why ESG Stocks in India Are Gaining Momentum

The first time I saw ESG reports from Indian companies, I realized it wasn’t just lip service. There’s a genuine shift happening.

• Investor demand – Mutual funds and global funds now want companies that tick ESG boxes.

• Government push – SEBI has introduced sustainability reporting standards.

• Corporate responsibility – Companies don’t want to be left behind in the global race.

For us investors, this means ESG stocks in India aren’t just about feeling good—they’re increasingly about solid, long-term growth potential.

How I Personally Look at ESG Stocks

Whenever I sit down with a stock list, here’s the simple checklist I run through:

• Strong governance: Promoters with good track records.

• Debt levels: Lower debt-to-equity always feels safer.

• Profitability + Purpose: A balance of returns and responsibility.

This way, I don’t just see them as numbers on a sheet but as businesses shaping the future.

Part 2: Top 20 ESG Stocks in India

Now let’s dive into the list. I’ll walk you through each company—150 words each—so you get a sense of their ESG approach, business strength, and long-term role in India’s economy.

1. ACC Ltd – Cementing a Sustainable Future

Whenever I think of cement, pollution is the first thing that comes to mind. But ACC Ltd has been shifting gears. Known as one of India’s biggest cement makers, it has been focusing heavily on reducing carbon emissions and improving energy efficiency. Their market cap sits around ₹33,480 crore, and while cement isn’t a “clean” sector by nature, ACC is pushing toward green manufacturing.

What stands out for me is their return on equity (13.7%) and strong balance sheet. ESG-wise, their parent group has global commitments to sustainability. For investors looking at construction material companies, ACC feels like a business trying to move with the times. In the ESG stocks in India list, it represents how even heavy industries can adapt. That’s the larger point: best ESG stocks in India don’t always come from “clean” industries; they’re from companies willing to reinvent.

2. Ambuja Cements Ltd – Building Green Growth

Ambuja has always been ahead of the curve. With a market cap of over ₹1.4 lakh crore, it’s a leader in sustainable cement production. Their energy efficiency, water management, and use of alternative fuels make them stand out.

From an ESG lens, I like how they’ve focused on low debt (virtually debt-free) and strong promoter backing. Their governance record also feels reliable compared to peers. In terms of financials, a PE of 33x shows investors are already pricing in growth.

Why do I consider Ambuja as one of the best ESG stocks in India? Because it balances profitability with responsibility. For me, this isn’t about whether cement is “green” or not, but whether a company within cement is pushing itself toward sustainability. Ambuja clearly is.

3. Ashok Leyland Ltd – Driving Cleaner Mobility

Trucks and buses are India’s backbone, and Ashok Leyland is at the center of it. Traditionally, the automobile sector isn’t ESG-friendly, but Ashok Leyland has been investing in electric buses and cleaner fuel vehicles. That’s why I see it as part of India’s ESG journey.

Its ROE of 32% shows profitability strength, and with promoter holding above 50%, governance looks fairly strong. Yes, there’s debt, but in automobile manufacturing, that’s expected.

What excites me here is their move into EVs for commercial use. ESG stocks in India aren’t only about today’s performance—they’re about future alignment. Ashok Leyland is positioning itself for that. Among the best ESG stocks in India, this one reflects how legacy companies can evolve.

4. Asian Paints Ltd – Colors with Responsibility

Asian Paints is a household name, but beyond colors, it’s their ESG work that caught my eye. They’ve been improving water recycling, reducing emissions, and focusing on safe products.

Their PE of 67x feels steep, but it reflects investor confidence. What I like more is their ROCE of 26%, showing efficient use of capital. In terms of ESG, Asian Paints has been transparent with reporting, which matters a lot for governance.

For me, the best ESG stocks in India aren’t just about low pollution sectors; they’re also about companies that stay consistent in governance and social responsibility. Asian Paints ticks both.

5. Avenue Supermarts Ltd (DMart) – Retail with Purpose

Whenever I step into a DMart store, I notice something simple but powerful: efficiency. Their model is low waste, cost-friendly, and people-focused. Avenue Supermarts has a huge promoter holding of 74%, which signals governance strength.

Their PE above 100x may scare some, but investors trust its growth. What makes DMart part of ESG stocks in India is its focus on supply chain responsibility and affordable access.

For me, the best ESG stocks in India often come from companies that understand community impact. DMart does exactly that—by making essentials accessible while still growing responsibly.

6. Axis Bank Ltd – Banking with Responsibility

Banks are often overlooked in ESG discussions, but I believe governance and social responsibility are just as important here. Axis Bank is one of India’s leading private banks and has been building its ESG profile through responsible lending, financial inclusion programs, and digital innovation.

The stock trades around ₹1,067 with a market cap of ₹3.31 lakh crore. Its PE of 11.9 looks reasonable, and promoter holding is low (8%) since it’s an institutionally driven bank. Governance is strong due to professional management and board oversight.

Why do I include Axis Bank in the list of ESG stocks in India? Financial institutions play a big role in sustainable development. By funding green projects and promoting responsible lending, Axis becomes one of the best ESG stocks in India from the banking sector. For me, ESG is not just about factories—it’s also about who funds the future.

7. Bajaj Finance Ltd – Financing Sustainable Growth

Bajaj Finance is a name I’ve followed for years because of its aggressive growth in retail lending. But beyond numbers, what makes it part of ESG investing is its focus on governance, digital transparency, and customer responsibility. In financial services, governance is everything—and Bajaj Finance has earned investor trust.

The stock trades around ₹861 with a market cap of ₹5.35 lakh crore. It has a ROE of nearly 20% and strong promoter backing (55%). Debt is high, but that’s natural for an NBFC model.

In ESG terms, Bajaj Finance stands out for maintaining transparency and embracing financial inclusion. That’s why I see it as one of the best ESG stocks in India from the NBFC space. For me, ESG stocks in India don’t always mean “clean energy” or “green materials.” Sometimes, it’s about financial discipline and customer-first responsibility—and Bajaj Finance reflects that well.

8. Bank of Baroda – Public Sector Push for ESG

Public sector banks often get ignored in ESG discussions, but Bank of Baroda is worth noting. It has been improving its governance standards and focusing on financial inclusion, rural outreach, and green financing initiatives.

The stock trades at ₹242 with a market cap of ₹1.25 lakh crore. Its PE of just 6.4 shows it’s undervalued compared to private peers. Promoter (Government) holding is 63%, which ensures stability but also comes with bureaucratic risks.

From an ESG perspective, what I like is its work in extending credit to underserved communities and aligning with India’s renewable energy financing. Among ESG stocks in India, Bank of Baroda shows that even PSU banks are catching up. It may not look like the flashiest pick, but for me, it proves that the best ESG stocks in India can also come from government-backed financial institutions working for social change.

9. Bharti Airtel Ltd – Connecting with Care

Telecom is no longer just about connectivity—it’s about digital responsibility. Bharti Airtel is one of my favorite ESG stocks in India because of its focus on renewable energy, digital inclusion, and rural connectivity.

The stock trades at ₹1,873 with a massive market cap of ₹11.4 lakh crore. It has strong profitability with ROE of 38% and a promoter holding above 50%. Debt exists, but that’s natural in telecom due to spectrum investments.

From an ESG standpoint, Airtel’s move into green energy for towers and responsible data policies is impressive. For me, the best ESG stocks in India are those shaping the future of digital India while staying responsible. Airtel does exactly that—it’s not just a telecom provider, but also a driver of social inclusion by connecting millions.

10. Biocon Ltd – Healthcare with Responsibility

Biocon is one of India’s most well-known biopharma companies, and ESG plays a big role in its identity. What excites me is its focus on affordable healthcare, ethical drug development, and governance transparency.

The stock trades at ₹359 with a market cap of ₹48,043 crore. Its PE of 124x shows that investors are paying for future growth potential. Promoter holding is above 54%, which shows strong family backing.

From an ESG perspective, Biocon’s commitment to affordable medicines and global partnerships is key. It’s not just about profits; it’s about making healthcare accessible. That’s why I see Biocon among the best ESG stocks in India. In the larger pool of ESG stocks in India, Biocon stands out as a company that blends innovation, responsibility, and governance into one.

11. Cipla Ltd – Affordable & Sustainable Pharma

Cipla has always stood out for me as a pharma company with a heart. They’ve been pioneers in affordable medicines, HIV treatment access, and sustainability in drug manufacturing.

The stock trades near ₹1,563 with a market cap of ₹1.26 lakh crore. It’s valued reasonably with a PE of 23x and boasts an ROE above 18%. Promoter holding is modest at 29%, but institutional trust is strong.

From an ESG view, Cipla’s work in affordable healthcare makes it one of the best ESG stocks in India. Governance has been transparent, and they’ve worked consistently on reducing environmental impact from manufacturing plants. Among ESG stocks in India, Cipla represents how pharma can balance profitability and purpose.

12. HDFC Bank Ltd – ESG in Private Banking

HDFC Bank has long been my benchmark for governance in Indian banking. It’s not just about being the largest private bank; it’s about being disciplined, transparent, and socially responsible.

The stock trades at ₹1,991 with a market cap of ₹15.2 lakh crore. With a PE of 21x and ROE of 15%, it remains one of India’s most stable banking names. Governance is strong, with promoter group holding around 20%.

For me, HDFC Bank ranks among the best ESG stocks in India because of its focus on financial inclusion, SME support, and clean governance record. In the list of ESG stocks in India, this bank sets the gold standard for responsible finance.

13. Hero MotoCorp Ltd – Riding Towards Sustainability

When I think of ESG in automobiles, Hero MotoCorp comes to mind for its focus on two-wheeler EVs and green mobility. As the world’s largest two-wheeler manufacturer, its impact on India’s transport ecosystem is massive.

The stock trades near ₹4,706 with a market cap of ₹94,153 crore. Its ROE of nearly 24% shows profitability strength. Debt is almost negligible, which I like in manufacturing companies.

Hero’s ESG journey is about investing in EV platforms, building green factories, and focusing on affordable mobility. That’s why I consider it among the best ESG stocks in India. For me, ESG stocks in India are about how companies adapt to cleaner technologies—and Hero MotoCorp is leading that shift in two-wheelers.

14. Hindalco Industries Ltd – Metals with a Greener Edge

Metals are usually seen as high-pollution, but Hindalco has been working to change that narrative. It’s one of the few Indian companies focusing on recycling, energy efficiency, and sustainable mining practices.

The stock trades at ₹695 with a market cap of ₹1.56 lakh crore. Its PE is under 10, making it attractively valued. Governance-wise, promoter holding is stable at around 34%.

From an ESG standpoint, Hindalco’s recycling push is what impresses me most. Aluminum recycling reduces carbon footprint drastically, and Hindalco is scaling up. That’s why I count it among the best ESG stocks in India. It shows that even in heavy industries, ESG stocks in India can lead meaningful change.

15. IndusInd Bank Ltd – Responsible Lending Practices

IndusInd Bank has come a long way, and what makes me interested is its focus on responsible lending, rural outreach, and inclusive banking practices.

The stock trades at ₹769 with a market cap of ₹59,973 crore. Its PE of 59x looks stretched, but the growth story is priced in. Promoter holding is around 16%, with institutions owning a significant chunk.

From an ESG perspective, I like its focus on rural lending, women empowerment programs, and sustainability-linked financing. Among ESG stocks in India, IndusInd Bank stands as a reminder that governance and lending ethics are just as important as profits. That’s why I rank it among the best ESG stocks in India from the banking sector.

16. Infosys Ltd – Technology Driving Sustainability

Infosys has always been more than an IT company—it’s been a symbol of good governance. I admire its focus on renewable energy, carbon neutrality, and inclusive workplace policies.

The stock trades at ₹1,447 with a market cap of ₹6.01 lakh crore. Its PE of 22x is reasonable for a global IT leader. With institutional holding above 70%, governance is professional and transparent.

For me, Infosys isn’t just one of the best ESG stocks in India—it’s a global ESG role model. Its efforts in green campuses and AI-driven sustainable solutions stand out. Among ESG stocks in India, Infosys proves how governance and transparency create long-term value.

17. JSW Steel Ltd – Greener Steel Ambitions

Steel is resource-heavy, but JSW Steel is actively trying to cut emissions. I like their focus on green steel production, energy efficiency, and waste reduction.

The stock trades at ₹1,045 with a market cap of ₹2.55 lakh crore. Its PE of 52x shows premium valuation, but governance is solid with 45% promoter holding.

From an ESG lens, JSW Steel’s work on renewable energy-powered plants is noteworthy. In the list of ESG stocks in India, JSW Steel highlights that even high-emission industries are evolving. It deserves a place among the best ESG stocks in India for its sustainability commitments.

18. Kotak Mahindra Bank Ltd – ESG in Financial Services

Kotak Mahindra Bank has always impressed me with its risk management, clean governance, and responsible lending practices.

The stock trades at ₹1,978 with a market cap of ₹3.93 lakh crore. With a PE of 20x, it’s valued fairly for a leading private bank. Promoter holding is about 26%, which ensures long-term alignment.

From an ESG standpoint, Kotak’s work in SME lending, green financing, and governance transparency makes it one of the best ESG stocks in India. In ESG stocks in India, financial institutions like Kotak remind me that sustainable capital allocation is as important as industrial ESG efforts.

19. Lupin Ltd – Responsible Pharma Practices

Lupin has been an important player in pharma, especially in the affordable medicines and generics space. What I like is its ESG focus on drug accessibility, women’s health initiatives, and green manufacturing plants.

The stock trades near ₹1,959 with a market cap of ₹89,515 crore. It’s valued at around 24x PE, with strong promoter holding at 46%.

In ESG terms, Lupin’s focus on health access and ethical practices makes it stand out. That’s why I consider it among the best ESG stocks in India. In the pool of ESG stocks in India, Lupin balances profitability with healthcare responsibility.

20. Marico Ltd – FMCG with ESG at Heart

Marico is one of my favorite examples of ESG in FMCG. From sustainable sourcing of raw materials to eco-friendly packaging and community programs, Marico shows ESG isn’t just a side activity—it’s core to business.

The stock trades at ₹711 with a market cap of ₹92,306 crore. Its PE of 55x looks expensive, but FMCG leaders often trade at a premium. Promoter holding is nearly 59%, which is very strong.

For me, Marico deserves a place among the best ESG stocks in India because of its consistent sustainability focus. Among ESG stocks in India, Marico proves that even consumer brands can lead on ESG metrics while building long-term value.

Part 3: Lessons From These ESG Leaders

Common Traits of Best ESG Stocks in India

After breaking down these companies, I noticed some common threads:

• Promoter holdings above 50% show governance strength.

• Debt is mostly under control.

• Return on capital efficiency is solid.

• They’re not perfect—but they’re moving in the right direction.

This is why ESG stocks in India are worth watching closely.

Risks in ESG Investing

I’d be lying if I said ESG is risk-free. Here’s what I always keep in mind:

• Greenwashing: Companies overstate ESG credentials.

• Valuations: Some best ESG stocks in India trade at premium PEs.

• Regulations: Policies can shift fast, and not every company adapts quickly.

That’s why ESG should be about long-term patience, not short-term excitement.

My Personal Approach to ESG Investing

I don’t just “buy ESG stocks.” I build a framework:

1. Look at fundamentals (PE, ROE, debt levels).

2. Match them with ESG practices.

3. Diversify across sectors—banks, cement, pharma, IT.

That way, I don’t put all faith in one sector but spread it across leaders.

Part 4: The Future of ESG in India

The future looks bright. ESG isn’t a Western concept anymore—it’s deeply rooted here now. With SEBI’s mandatory sustainability disclosures, ESG stocks in India will only become more transparent.

• AI and big data will help track ESG performance.

• Investors will start rewarding companies that genuinely adapt.

• Over time, ESG will move from “good to have” to “must have.”

For me, that’s the biggest reason I keep studying the best ESG stocks in India. They aren’t just shaping portfolios—they’re shaping the economy.

Conclusion

If I had to sum it up, ESG stocks in India are not about chasing trends. They’re about identifying companies that combine profits with purpose. From cement makers like ACC to IT giants like Infosys, the list shows that ESG is spreading across every sector.

When I think about the future, I’m convinced of one thing: the best ESG stocks in India will belong to companies that stay adaptable, transparent, and responsible. That’s where real wealth is created—not just for investors, but for society as a whole.