CS Professional · Paper 1

Environmental, Social and Governance (ESG) - Principles and Practice Paper

Paper 1, Environmental, Social and Governance (ESG) - Principles and Practice, is a 100-mark descriptive paper of 3 hours. It has three parts: Governance and Sustainability (65 marks), Risk Management (20) and Environment and Sustainability Reporting (15). You solve it by stating the provision, applying it to the facts and concluding.

This paper tests whether you can apply governance, risk and sustainability rules to a company's facts, not whether you can recite them. It is a written, case-based paper. A typical answer states the provision or framework, analyses the facts given, and reaches a conclusion a company secretary would advise.

The paper has three parts. Governance and Sustainability carries 65 marks and covers most of the chapters: the governance framework, boards and committees, Secretarial Standards, disclosures, data governance, stakeholder rights, ethics, CSR and green initiatives. Risk Management carries 20 marks. Environment and Sustainability Reporting carries 15 marks and covers audit, ratings and reporting frameworks such as Integrated Reporting, GRI and BRSR.

Students usually score well when they know the legal text and add a short, practical point on compliance or drafting. They lose marks when they write general essays on governance without naming the Act, regulation or standard. The paper is wide, so coverage matters. Because Part 1 is the largest, it should get most of your study time. Do not skip the smaller parts, as each paper needs at least 40% to pass the group.

Environmental, Social and Governance (ESG) - Principles and Practice: chapters and topics

Part I: Governance and Sustainability

Conceptual Framework of Corporate Governance

Part I: Governance and Sustainability

Legislative Framework of Corporate Governance in India

Part I: Governance and Sustainability

Board Effectiveness and Building Better Boards

Part I: Governance and Sustainability

Board Processes through Secretarial Standards

Part I: Governance and Sustainability

Board Committees

Part I: Governance and Sustainability

Concept of Governance in Professional Managed Company and Promoters Driven Company

Part I: Governance and Sustainability

Board Disclosures and Website Disclosures

Part I: Governance and Sustainability

Data Governance

Part I: Governance and Sustainability

Stakeholders Rights

Part I: Governance and Sustainability

Business Ethics, Code of Conduct and Anti-Bribery

Part I: Governance and Sustainability

Board's Accountability on ESG

Part I: Governance and Sustainability

Environment

Part I: Governance and Sustainability

Corporate Social Responsibility (CSR)

Part I: Governance and Sustainability

Green Initiatives

Part I: Governance and Sustainability

Governance Influencers

Part I: Governance and Sustainability

Empowerment of the Company Secretary Profession

Part II: Risk Management

Risk Management

Part III: Environment and Sustainability Reporting

Sustainability Audit, ESG Rating and Emerging Mandates from Government and Regulators

Part III: Environment and Sustainability Reporting

Integrated Reporting Framework, Global Reporting Initiative Framework and Business Responsibility and Sustainability Reporting

How to prepare Environmental, Social and Governance (ESG) - Principles and Practice

The syllabus has 19 chapters, so plan by part and revise in cycles. Work in short sessions that suit a phone and a working day.

Split the 19 chapters into the three parts. Governance and Sustainability gets the largest share of your time, since it carries 65 marks. Give Risk Management and Reporting fixed slots so they are not left to the end.
Read the legal text first for the chapters on the legislative framework, board processes, committees, disclosures and stakeholder rights. Note the exact conditions, such as who must comply and when. Then make a one-page summary per chapter.
Build comparison notes for items that students mix up: the Companies Act versus the SEBI listing regulations, mandatory versus recommended practices, and the Secretarial Standards on board and general meetings.
For the CSR, Environment and Green Initiatives chapters, link each rule to an Indian company example and a compliance step. Practise stating what the board must do, what must be disclosed, and where.
Learn the reporting frameworks side by side. Know what Integrated Reporting, GRI and BRSR each aim to do, who they apply to, and how they differ. Add the points on sustainability audit and ESG ratings.
Practise case-based answers in the exam pattern. Write each in three parts: provision, analysis of the facts, conclusion. Do at least one full 3-hour paper under timed conditions before the exam.
Revise in cycles. Use the first pass for understanding, the second for your summaries, and the last two weeks for past questions and the latest amendments and regulator circulars.
Check updates before the session. Governance, ESG and reporting rules change often, so confirm the current provisions against the official texts.

Time management in the exam

Use the 15 minutes of reading time to choose your questions, if choice is offered, and mark the ones you can answer fully. Start with your strongest.
Divide time roughly by marks. A 3-hour paper of 100 marks gives you about 1.8 minutes per mark, so keep a few minutes spare for review.
On a case question, spend the first minutes underlining the facts and the issue. Then write provision, analysis and conclusion in that order.
Do not over-write the 15 and 20 mark parts. Give each question its share of time and move on when it is up.
Use numbered points, short paragraphs and exact names of provisions. This is faster to write and easier for the examiner to mark.
Keep the last 10 minutes to check that every question is attempted and every case has a clear conclusion.

Mistakes that cost marks in Environmental, Social and Governance (ESG) - Principles and Practice

Writing general essays without naming the provision
Fix: Open each answer with the relevant Act, regulation or standard and its condition. Then apply it.
Ignoring the case facts
Fix: Underline the facts first. Use them in your analysis and tie your conclusion to them.
Neglecting Risk Management and Reporting
Fix: Schedule them early. You need at least 40% in the paper, and easy marks here protect your aggregate.
Mixing mandatory and recommended practices
Fix: Mark each point as legal requirement or good practice in your notes, and state it that way in answers.
Skipping the practical compliance step
Fix: End each answer with the action: the disclosure, resolution, filing or report to be made.
Using outdated rules
Fix: Check the current text of each provision and update your summaries before the session.

Environmental, Social and Governance (ESG) - Principles and Practice: frequently asked questions

How many marks does each part of the ESG paper carry?

Governance and Sustainability carries 65 marks, Risk Management 20 and Environment and Sustainability Reporting 15. The paper is 100 marks in total.

Is the ESG paper MCQ based?

No. It is a descriptive paper of 3 hours, with 15 extra minutes for reading the question paper. There are no MCQs, OMR sheets or negative marking.

What is the passing mark for this paper?

You need at least 40% in the paper and 50% in the aggregate of the group at one sitting. Paper 1 is in Group 1 with Papers 2, 3 and Elective 1.

Is Paper 1 an open book exam?

No. Only the elective papers are open book. You must know the provisions and frameworks for this paper without looking them up.

How should I split my study time across the three parts?

Give most of your time to Governance and Sustainability, since it has the most chapters and 65 marks. Still set fixed slots for Risk Management and Reporting, so no part is left unprepared.