BEYOND THE BOTTOM LINE: A 'SHUBH LABH' FRAMEWORK FOR REGENERATIVE ESG REPORTING AND DOUBLE MATERIALITY

Abstract

Abstract: Contemporary Environmental, Social, and Governance (ESG) frameworks face a legitimacy crisis, often prioritizing risk mitigation (financial materiality) over holistic value creation. This paper argues that current standards lack a philosophical grounding in regenerative economics. I suggest that in addition to the Western ESG models, the Indian idea of Shubh Labh (Auspicious Profit) that is based on Lokasamgraha (universal welfare) could be the very thing that the ESG models lack. A comparative institutional analysis along with a hermeneutic reconstruction of ancient texts (Arthashastra, Bhagavad Gita) lays the foundation for us to create the Auspiciousness Matrix, a ground-breaking reporting mechanism that is capable of quantifying "ethical value added”. Through case study validation of the Tata Group and Patagonia, we demonstrate that Shubh Labh offers a measurable pathway to extend 'Double Materiality' into 'Triple Materiality' (Financial, Impact, and Regenerative). The findings suggest that bridging IKS (Indian Knowledge Systems) with modern reporting standards can redefine competitive advantage and unlock patient capital for regenerative capitalism.