ESG Reporting in India: SEBI Rules, BRSR Framework & What Companies Must Prepare For
Environmental, Social, and Governance (ESG) reporting has moved from a “good-to-have” to a regulatory and investor-driven necessity in India. With rising global scrutiny and capital increasingly flowing toward responsible businesses, Indian regulators have taken decisive steps to formalise ESG disclosures.
Today, ESG reporting in India is primarily shaped by the Business Responsibility and Sustainability Reporting (BRSR) framework introduced by the Securities and Exchange Board of India (SEBI).
👉 https://www.sebi.gov.in
This framework is not merely about compliance—it aims to align Indian corporates with global sustainability standards and investor expectations.
This guide explains the current ESG reporting rules in India, recent SEBI updates, and what organisations should prepare for next.
Understanding ESG Reporting in India
India mandates ESG reporting for certain listed companies through legally enforceable disclosure norms.
The statutory foundation for ESG disclosures lies in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR), under which SEBI introduced the BRSR framework.
👉 https://www.sebi.gov.in/legal/regulations.html
From FY 2022–23 onwards, eligible companies are required to include a Business Responsibility and Sustainability Report as part of their annual filings.
Who Must Comply with ESG Reporting in India?
Currently, BRSR compliance is mandatory for:
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Top 1,000 listed companies by market capitalisation in India
This phased approach reflects SEBI’s intent to first strengthen ESG transparency among large, systemically important corporates before expanding coverage.
What Is the Business Responsibility and Sustainability Reporting (BRSR) Framework?
The BRSR framework standardises ESG disclosures across Indian listed companies by prescribing structured, measurable, and comparable data points.
It builds upon India’s earlier Business Responsibility Report (BRR) while aligning disclosures with global ESG expectations.
SEBI’s official BRSR circulars and formats are available here:
👉 https://www.sebi.gov.in/sebiweb/home/HomeAction.do?doListing=yes&sid=6&ssid=23&smid=0
Key Areas Covered Under BRSR
The BRSR framework requires disclosures across three core pillars:
Environmental
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Energy consumption
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Greenhouse gas emissions
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Water usage and waste management
Social
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Employee welfare and occupational safety
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Diversity and inclusion
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Community development and human rights
Governance
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Board composition and ethics
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Risk management systems
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Anti-corruption and transparency practices
SEBI has clarified that nearly 94% of BRSR disclosures are mandatory, underscoring the seriousness of ESG compliance in India.
BRSR Core: Strengthening ESG Credibility
To address concerns around greenwashing and inconsistent ESG data, SEBI introduced BRSR Core, a focused subset of key ESG performance indicators.
BRSR Core emphasises:
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Standardised ESG metrics
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Assurance-ready disclosures
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Alignment with global benchmarks
This move improves the credibility of ESG data, particularly for companies accessing foreign institutional capital.
Recent SEBI Revisions to ESG Disclosure Norms
SEBI has continued to refine ESG reporting norms to make them more practical and globally aligned.
One of the most notable updates relates to value chain ESG reporting.
ESG Reporting for Value Chain Partners
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ESG disclosures for value chain partners will be voluntary for the top 250 listed companies
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Applicability begins from FY 2025–26
This provides companies with time to develop systems for collecting ESG data from suppliers and vendors, while clearly signalling SEBI’s long-term intent toward extended ESG accountability.
Why ESG Reporting Matters Beyond Compliance
ESG reporting in India is increasingly viewed as a strategic business lever, not just a regulatory requirement.
Strong ESG disclosures help companies:
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Access global capital and ESG-linked funds
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Build trust with institutional and foreign investors
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Strengthen brand reputation
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Identify environmental and social risks early
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Prepare for tighter future regulations
This aligns Indian companies with international investor expectations shaped by frameworks such as GRI (https://www.globalreporting.org) and TCFD (https://www.fsb-tcfd.org).
ESG Guidance for Listed Corporates
With growing complexity, demand for structured ESG guidance is rising among Indian corporates.
Companies starting their ESG journey should focus on:
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Setting up internal ESG governance and oversight
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Identifying material ESG issues relevant to their industry
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Collecting accurate, auditable ESG data
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Aligning BRSR disclosures with global standards such as GRI and TCFD
Early preparation significantly improves reporting quality and reduces compliance risk.
Practical Tips for Indian Companies Preparing ESG Reports
To strengthen ESG readiness, companies should:
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Conduct a gap assessment against BRSR requirements
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Assign ESG ownership at board and senior management levels
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Integrate ESG metrics into existing risk and compliance systems
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Use digital tools to track environmental and social data
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Engage value chain partners early for future reporting
These steps make ESG reporting more credible, scalable, and regulator-ready.
The Future of ESG Reporting in India
SEBI has clearly indicated that ESG norms will continue to evolve toward:
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Greater standardisation
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Wider coverage beyond top 1,000 companies
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Increased focus on assurance and data quality
As India integrates deeper with global capital markets, ESG reporting will become central to corporate transparency and long-term value creation.
Final Thoughts
ESG reporting in India is no longer a regulatory formality—it is a strategic necessity. With SEBI strengthening disclosure norms and aligning them with global expectations, Indian companies must embed ESG into core governance and decision-making.
Organisations that invest early in robust ESG systems, governance, and data quality will not only stay compliant but also gain a long-term competitive advantage in capital access, partnerships, and stakeholder trust.
