In India’s bustling ESG landscape, businesses are no longer measured solely by their profits but by their commitment to sustainable and responsible practices. Business Responsibility and Sustainability Reporting (BRSR) has emerged as the beam guiding enterprises through this evolutionary journey, taking critical space alongside other global ESG frameworks, including GRI, CDP, ISSB, SASB, and more!
The BRSR has been constantly evolving and this article explores the dynamic trends shaping BRSR and ESG Reporting in India, unveiling the strategies and shifts in how organizations are shaping their ESG commitments.
A Brief Overview of BRSR
The Business Responsibility and Sustainability Report (BRSR) is a mandatory reporting framework for India’s top 1000 listed companies.
It was introduced by the Securities and Exchange Board of India (SEBI) in 2021 and is based on the nine United Nations Global Compact principles.
The BRSR requires companies to disclose information on various ESG topics, including their environmental impact, social responsibility, and corporate governance. This information is intended to help investors, subscribers, and other stakeholders make informed decisions about the companies they interact with.
Trends in BRSR & ESG Reporting in India
Here’s a look at how the BRSR & ESG Reporting Landscape in India is evolving in 2023.
1.BRSR Core: A Compass for Sustainable Business in the Indian Context
While the BRSR has been mandatory for the top 1000 listed companies in India, the Securities & Exchange Board of India (SEBI) announced in July 2023 that certain listed companies would need to report on newly added ESG metrics for mandatory disclosure under ‘BRSR Core’.
The BRSR Core was developed to encourage organizations to report on key metrics that are critical to the Indian context. It includes subset of nine Key Performance Indicators (KPIs) that Indian-listed entities are required to disclose, including job creation in small towns, gross wages paid to women, business openness, and more. You can access the newly added KPIs in Annexure II here.
2.The Framework for Reasonable Assurance on ESG Metrics
In addition to redefining ESG Key Performance Indicators (KPIs) in the Indian context, SEBI has also made it mandatory for the top 150 listed companies by market capitalization to provide “reasonable assurance” on Environmental, Social, and Governance (ESG) metrics starting FY 2023-24.
The Framework for Assurance provides a pathway for listed entities to obtain assurance on their BRSR Core disclosures. This assurance helps to build trust and confidence in the credibility of ESG reporting and permits investors and other stakeholders to make well-informed decisions.
BRSR Core and the Framework for Assurance are essential tools for Indian-listed entities to navigate the complex journey of sustainability. They provide a clear roadmap for businesses to adopt and implement sustainable practices and to achieve long-term success. You can access the BRSR Core Format subject to reasonable assurance here.
3.Indian Trends in BRSR & ESG Reporting
Indian companies are increasingly embracing BRSR to disclose their sustainability performance. A recent survey by Deloitte found that 75% of Indian companies are now reporting on their sustainability and ESG performance.
Some of the leading Indian companies that are reporting under BRSR include Reliance Industries Limited (RIL), Tata Consultancy Services (TCS), and Sterlite Tech. These companies are disclosing a range of sustainability metrics, including greenhouse gas emissions, water consumption, waste generation, employee diversity, and corporate governance practices.
For example, RIL reported in its BRSR 2022 that it reduced its GHG emissions by 10% year-over-year. TCS reported that it had hired over 100,000 people from underprivileged backgrounds in the past year. Sterlite Tech (STL) received a rating of ’A’ in the evaluation by MSCI for its ESG efforts.
The adoption of BRSR by Indian companies is a positive development for ESG reporting in India. BRSR is helping to improve the quality and reliability of ESG disclosures and to promote sustainable business practices.
4.Reporting Value Chain ESG Metrics
As organizations increasingly acknowledge the impact of their supply chains on the environment, the BRSR Core urges companies to report on their value chain ESG metrics. An organization should be reporting ESG metrics comprising the principal upstream and downstream partners that account for 75% of its sales/purchases.
Organizations can choose to report on these metrics either separately listing down upstream and downstream BRSR Core KPIs associated with their value chain or reporting in an aggregated format. SEBI has made it mandatory for the top 250 listed companies by market capitalization to report their value chain ESG metrics from FY 2024-25. Additionally, organizations will need to limited assurance of the above from FY 2025-26.
5.Climate Resilience: Preparing for Tomorrow’s Challenges
In addition to reporting ESG metrics under BRSR, businesses also need to identify areas of improvement and chart effective plans to transition to an era of business sustainability. Companies increasingly disclose information on their greenhouse gas emissions, their efforts to reduce emissions and their adaptation plans including
- the need to meet India’s net-zero emissions goal by 2070
- the increasing cognizance of the impact of climate change
- the ever-growing demand for sustainable products and services from consumers
Organizations need to identify projects of impact, break them into critical milestones, and ensure that these are achieved by the targeted dates. These smaller steps can help them achieve their net-zero goals in the long run.
6.Tech-Driven Reporting: From Data to Insights with ESG Reporting Software
Reporting their ESG Metrics under BRSR and meeting their net-zero goals requires exceptional operational efficiency and the ability to seamlessly report accurate investment-grade ESG data. Businesses in Indian are increasingly acknowledging the power of digital transformation in their ESG and Sustainability journey.
From involving enterprise-wide teams in reporting ESG data to using data and metrics to measure and improve their sustainability performance, digital solutions are critical to help organizations achieve ESG success.
Digitally Transforming Organizations’ BRSR & ESG Reporting & Performance
Digital transformation and ESG Reporting Software can play a compelling role in helping businesses report their ESG metrics more efficiently, accurately, and transparently.
By automating data collection, reporting, and analysis, Benchmark Gensuite’s digital solutions can help organizations to
- Reduce the time and cost of ESG reporting, freeing up resources to focus on other sustainability initiatives and create real impact
- Improve the accuracy and completeness of ESG data, ensuring that investment-grade ESG data is reported to stakeholders
- Gain insights into ESG performance and identify areas for improvement, enabling organizations to set ambitious goals and track their progress over time
Learn how you can embrace Benchmark Gensuite’s ESG Reporting Software to help you collect and report investment-grade ESG data and improve ESG performance over time. Click the button below to learn more!
