Business Responsibility and Sustainability Reporting (BRSR)

Introduction

The Business Responsibility and Sustainability Reporting (BRSR) framework represents India’s transition toward standardized Environmental, Social, and Governance (ESG) disclosures. Introduced by the Securities and Exchange Board of India, BRSR replaces the earlier Business Responsibility Report (BRR) and establishes a comprehensive, data-driven disclosure regime aligned with global sustainability standards.
Applicable from FY 2022–23, BRSR mandates the top 1000 listed companies to disclose ESG performance across the 9 Principles of the National Guidelines on Responsible Business Conduct (NGRBC).
The framework emphasizes transparency, accountability, and integration of sustainability into core business strategy, shifting ESG from voluntary reporting to structured regulatory compliance.

I. Statutory Basis & Regulatory Architecture

BRSR is governed under SEBI’s Listing Obligations and Disclosure Requirements (LODR), forming part of mandatory annual disclosures for listed entities.
Key Legal Characteristics

1. Mandatory ESG Disclosure Regime

BRSR compliance is compulsory for the top 1000 listed companies by market capitalization, making ESG reporting a regulatory obligation.

2. Standardized Reporting Framework

SEBI prescribes a structured format covering:

• General disclosures
• Management approach
• Principle-wise ESG performance

3. Assurance-Driven Compliance (BRSR Core)

• Introduction of BRSR Core mandates third-party assurance on key ESG indicators in a phased manner.

4. Integrated Annual Reporting Requirement

• BRSR forms part of the company’s Annual Report, ensuring board-level accountability and public disclosure.

II. Scope of Regulatory Coverage

The BRSR framework applies to:

• Top 1000 listed companies in India
• Entities across manufacturing, services, and financial sectors

Coverage Areas

• Environmental performance (energy, emissions, waste)
• Social aspects (employees, human rights, community impact)
• Governance practices (ethics, compliance, transparency)
• Supply chain sustainability

III. ESG Principles & Disclosure Structure

BRSR is structured around the 9 NGRBC Principles:
1.    Ethical governance and transparency
2.    Sustainable products and services
3.    Employee well-being
4.    Stakeholder engagement
5.    Human rights protection
6.    Environmental responsibility
7.    Responsible policy advocacy
8.    Inclusive growth and development
9.    Customer value and protection

Disclosure Format

• Section A: General Disclosures
• Section B: Management & Process Disclosures
• Section C: Principle-wise Performance Disclosures

IV. BRSR Core & Assurance Framework

BRSR Core introduces a focused set of ESG metrics requiring independent verification:

• Covers key quantitative ESG indicators
• Mandatory third-party assurance (phased implementation)
• Enhances reliability and investor confidence

This marks a shift toward assured sustainability reporting aligned with global ESG practices.




 

1.  Regulatory Compliance Assurance
Ensures adherence to SEBI ESG disclosure requirements, minimizing regulatory risks.

2.  Enhanced Transparency & Credibility
Improves stakeholder trust through structured ESG disclosures.

3.  Improved ESG Performance
Identifies gaps and drives sustainability improvements.

4.  Investor Attraction
Strengthens positioning for ESG-focused investors and funds.

5.  Risk Identification & Mitigation
Helps identify climate, social, and governance risks early.
 

Step 1: Applicability Assessment

• Determine whether the entity falls within the top 1000 listed companies
• Identify reporting scope and ESG applicability

Step 2: Gap Analysis

• Assess current ESG disclosures against BRSR requirements
• Identify data, policy, and process gaps

Step 3: Data Collection & Validation

• Gather ESG data across departments (HR, EHS, operations, procurement)
• Validate quantitative and qualitative disclosures

Step 4: Policy Alignment

• Align internal policies with NGRBC principles
• Strengthen governance and ESG frameworks

Step 5: Report Preparation

• Draft BRSR report as per SEBI format
• Ensure completeness and consistency

Step 6: Review & Approval

• Internal review and management validation
• Board-level approval

Step 7: Submission & Disclosure

• Publish as part of Annual Report
• Ensure compliance with SEBI timelines

1 . General Company Documents

• Certificate of Incorporation
• PAN & GST Details
• Annual Report (previous year)
• Business profile and operational details

2 . ESG & Operational Data

• Environmental data (energy, emissions, waste, water)
• Employee and HR data
• CSR and sustainability initiatives
• Supply chain information
• Governance and compliance policies

1.  Regulatory & Reporting Deliverables

• BRSR Applicability Assessment Report
• Gap Analysis Report
• Complete BRSR Report 

2.  Operational & Advisory Deliverables

• ESG Data Collection Templates
• Policy Review & Alignment Support
• ESG Performance Improvement Roadmap
• Assistance in Third-Party Assurance