Sustainability is no longer a choice, it’s a strategic necessity. In India, ESG reporting is evolving rapidly, making transparency and accountability central to how businesses operate. This article breaks down what companies must disclose, why it matters, and what’s new in 2024 -25.
If you’re a business owner, investor, or a professional exploring ESG accountability , this blog will help you understand India’s evolving ESG reporting landscape, including what’s required and why it matters.
What is ESG Reporting?
ESG stands for Environmental, Social, and Governance. These are key pillars that measure a company’s sustainability and ethical impact. ESG reporting involves disclosing how a business performs in these areas. It covers everything from carbon emissions and energy usage to employee diversity, corporate ethics, and boardroom practices.
A Quick History: ESG Reporting in India
India began its ESG journey over a decade ago:
-In 2009, the Ministry of Corporate Affairs (MCA) introduced Business Responsibility Reporting (BRR).
-In 2011, the National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business were launched.
-In 2012, SEBI (Securities and Exchange Board of India) made BRR mandatory for the top 100 listed companies.
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Evolution of ESG Reporting in India[/caption]
But a major shift happened in 2021, when SEBI introduced the Business Responsibility and Sustainability Report (BRSR). Unlike earlier frameworks, BRSR brings ESG reporting in line with global standards, aiming for more depth, clarity, and comparability. From FY 2022-23, BRSR reporting became mandatory for the top 1,000 listed companies in India.
The BRSR Framework: What’s Inside?
The BRSR is based on India’s National Guidelines on Responsible Business Conduct (NGRBC), which align with global benchmarks like the UN Sustainable Development Goals (SDGs) and the Paris Agreement.
BRSR has 3 core sections:
- General Disclosures: Company basics — size, industry, employee count, CSR spend, etc.
- Management & Process Disclosures: Company policies and governance aligned with 9 sustainability principles.
- Principle-wise Performance: Real actions and outcomes mapped to the NGRBC principles, broken into:Essential indicators (mandatory) and Leadership indicators (voluntary)
What Do Companies Need to Disclose?
BRSR requires detailed disclosures across Environmental, Social, and Governance areas:
Companies must also report ESG-focused R&D and capital expenditure, highlighting how much is being invested in green tech and social impact solutions.
What’s New? BRSR Core, Value Chains & Ratings
To tighten ESG norms and prevent greenwashing, SEBI has introduced new enhancements:
BRSR Core (From FY 2023-24):
-Focuses on 9 Key Performance Indicators (KPIs)
-Requires external assurance (auditing) of ESG data
-Initially applicable to the top 150 listed companies, expanding to 1,000 by FY 2026-27
Value Chain Disclosures:
-Companies must now track ESG data across their top suppliers and distributors (covering 75% of purchases/sales)
-Applies to the top 250 companies starting FY 2024-25, with limited assurance from FY 2025-26
ESG Rating Providers Regulation:
-SEBI now regulates ESG rating agencies
-Introduced ‘Core ESG Ratings’ (based on verified data) and ‘Transition Scores’, which track how well companies are improving over time
The Benefits of Transparent ESG Reporting:
The introduction and continuous refinement of the BRSR framework bring numerous benefits:
- Value Creation: Companies can position themselves as responsible businesses, leading to long-term value creation and improved market perception.
- Informed Investors: Transparent ESG reporting allows investors to make more informed decisions, fostering responsible investment practices.
- Corporate Sector Growth: By focusing on sustainability and transparency, the BRSR contributes to the overall growth of India's corporate sector, aligning it with global sustainable development goals.
- Standardization and Transparency: The BRSR promotes standardized and transparent ESG reporting, enhancing India's corporate sustainability framework and enabling companies to clearly demonstrate their ESG position and performance.
- Streamlined Reporting: The use of XBRL (eXtensible Business Reporting Language), a machine-readable format, is crucial for streamlining ESG reporting. It allows stakeholders
- Streamlined Reporting: The use of XBRL (eXtensible Business Reporting Language), a machine-readable format, is crucial for streamlining ESG reporting. It allows stakeholders to easily uncover meaningful insights, identify trends, and patterns from business reports, unlike error-prone PDF reports.
ESG Reporting in India is evolving rapidly. As one of the most comprehensive ESG frameworks in emerging markets, India’s BRSR offers companies a chance to lead with purpose. By going beyond compliance to embed ESG at the core, businesses can unlock long-term value, gain investor trust, and contribute to a more sustainable future.
To learn about the revised measures related to BRSR requirements including ESG disclosures, their assurance, and the introduction of voluntary green credit disclosures — read our blog:
BRSR Compliance for the Top 1000 Listed Entities and their Value Chain Partners