Environment, Social and Governance (ESG) reporting has gained significant importance as an instrument for communicating corporate sustainability performance to various stakeholders. At the same time, the fast development of sustainable finance increases the need for transparent, reliable and comparable ESG disclosures. To meet this need, organizations begin using digital technologies and automated systems for making their ESG reporting process more efficient and credible. This research paper is devoted to the role of ESG reporting automation in promoting sustainable finance and increasing competitiveness in the global market. This research is based on the secondary data collected from GSIA, SEBI, the NSE–SES ESG Analysis Model, CRISIL sustainability reports and other sources. It turns out that the amount of sustainable investment assets continues to grow worldwide, which shows the growing importance of ESG factors in investment decisions. Besides, it is revealed that the ESG reporting environment in India has been improved thanks to the introduction of the Business Responsibility and Sustainability Reporting (BRSR) framework and BRSR Core. Whereas governance is the most advanced pillar of ESG, the other two pillars need more attention. The research comes to the conclusion that ESG reporting automation would help ensure transparency, increase the quality of reporting, facilitate compliance with regulations and build investors’ trust.