Beta functions for the duality-invariant sigma model

The $O(d,d)$ invariant worldsheet theory for bosonic string theory with $d$ abelian isometries is employed to compute the beta functions and Weyl anomaly at one-loop. We show that vanishing of the Weyl anomaly coefficients implies the equations of motion of the Maharana-Schwarz action. We give a self-contained introduction into the required techniques, including beta functions, the Weyl anomaly for two-dimensional sigma models and the background field method. This sets the stage for a sequel to this paper on generalizations to higher loops and $alpha$ corrections.