This paper argues that as a step towards improving Indian corporate response to climate change, it is worth exploring an appropriate disclosure‐based regulation system. It sets out reasons why Indian companies need to improve their responses to climate change; and compares and contrasts disclosure‐based regulation with other traditional models of regulation (command‐and‐control or market‐based) in terms of their approach, strengths and weaknesses, based on its implementation in different parts of the world.