Businesses in India are increasingly expected to disclose their environmental, social, and governance performance in a structured and transparent manner. Investors, regulators, customers, lenders, supply chain partners, and other stakeholders now look beyond financial performance and assess how companies manage sustainability risks and responsible business practices.

One of the most important ESG reporting frameworks in India is Business Responsibility and Sustainability Reporting, commonly known as BRSR.

BRSR is a reporting framework introduced by SEBI for specified listed entities in India. It requires companies to disclose information related to environmental responsibility, social impact, governance practices, stakeholder engagement, sustainability risks, and responsible business conduct.

Whether you are a listed company, large corporate group, manufacturer, exporter, supplier, financial institution, infrastructure company, or service provider, understanding BRSR requirements is important for ESG compliance and sustainability reporting readiness.

What is ESG Reporting

ESG Reporting is the process of collecting, measuring, and disclosing information related to a company’s environmental, social, and governance performance.

It helps stakeholders understand how a business manages:

• Environmental impact
• Climate-related risks
• Energy and water usage
• Waste management
• Employee welfare
• Human rights
• Health and safety
• Customer responsibility
• Supply chain practices
• Corporate governance
• Business ethics
• Risk management

ESG reporting improves transparency and helps businesses demonstrate responsible and sustainable operations.

What is BRSR

BRSR stands for Business Responsibility and Sustainability Reporting.

It is a sustainability disclosure framework prescribed for specified listed entities in India. BRSR requires companies to report their ESG performance in a structured format as part of their annual reporting requirements.

BRSR replaced the earlier Business Responsibility Report framework and introduced more detailed, measurable, and comparable ESG disclosures.

The purpose of BRSR is to help investors and stakeholders evaluate how companies are managing sustainability risks, social responsibilities, environmental impact, and governance practices.

Why BRSR is Important

BRSR is important because it connects business performance with responsible conduct and sustainability impact.

It helps companies:

• Improve ESG transparency
• Meet SEBI reporting requirements
• Strengthen investor confidence
• Improve sustainability performance
• Identify ESG risks and opportunities
• Improve internal data systems
• Support responsible business practices
• Enhance stakeholder trust
• Improve corporate reputation
• Prepare for future sustainability regulations

For listed entities, BRSR is not only a compliance requirement but also an important tool for communicating ESG performance to investors and stakeholders.

Who Needs BRSR Reporting in India

BRSR reporting is mainly applicable to specified listed entities based on market capitalization.

BRSR may be relevant for:

• Top listed companies
• Companies covered under SEBI LODR requirements
• Listed companies preparing annual reports
• Companies voluntarily adopting ESG reporting
• Businesses seeking investor confidence
• Companies with sustainability reporting requirements
• Large suppliers working with listed companies
• Value chain partners of listed entities
• Exporters dealing with ESG-conscious buyers
• Businesses preparing for ESG ratings

Even where BRSR is not directly mandatory, many businesses may still need ESG-related documentation due to customer, investor, lender, or supply chain requirements.

Main Objective of BRSR

The main objective of BRSR is to encourage responsible business conduct and improve sustainability disclosure standards in India.

BRSR helps companies disclose:

• ESG policies
• Sustainability risks
• Environmental performance
• Social responsibility practices
• Governance systems
• Stakeholder engagement
• Employee and worker welfare
• Customer responsibility
• Community impact
• Supply chain responsibility

It allows investors and stakeholders to compare ESG performance across companies, sectors, and reporting periods.

Structure of BRSR

The BRSR format is divided into major sections that cover general business information, management processes, and principle-wise ESG disclosures.

The broad structure includes:

• General disclosures
• Management and process disclosures
• Principle-wise performance disclosures
• Essential indicators
• Leadership indicators

Each section requires companies to provide specific information about their ESG practices, policies, risks, and performance data.

General Disclosures Under BRSR

The general disclosures section captures basic information about the reporting entity.

This section may include:

• Corporate identity details
• Business activities
• Products and services
• Location of plants and offices
• Markets served
• Employee and worker details
• Holding, subsidiary, and associate company information
• CSR applicability
• Transparency and disclosure complaints
• Material ESG issues
• Sustainability risks and opportunities

This section gives stakeholders an overview of the company’s business profile and ESG context.

Management and Process Disclosures

Management and process disclosures focus on the company’s policies, governance systems, and decision-making approach.

This section generally covers:

• ESG policy availability
• Policy approval process
• Policy implementation
• Policy communication
• ESG governance structure
• Board-level oversight
• Senior management responsibility
• Grievance redressal mechanism
• Stakeholder engagement process
• Independent assessment, where applicable
• Review of policies and procedures

This section helps stakeholders understand whether the company has a structured system for responsible business conduct.

Principle-Wise Performance Disclosures

BRSR is based on responsible business principles aligned with the National Guidelines on Responsible Business Conduct.

Companies are required to disclose their performance across nine principles.

These principles cover:

• Ethics and transparency
• Product life cycle sustainability
• Employee well-being
• Stakeholder engagement
• Human rights
• Environmental protection
• Responsible public policy advocacy
• Inclusive growth
• Customer value and responsibility

Each principle includes essential indicators and leadership indicators.

Essential Indicators

Essential indicators are mandatory disclosures required under the BRSR format.

These indicators generally include data related to:

• Policies and governance
• Employee and worker information
• Health and safety
• Training and development
• Human rights
• Environmental performance
• Energy consumption
• Water usage
• Waste management
• Emissions
• Customer complaints
• Stakeholder engagement
• Business ethics
• Compliance systems

Companies should ensure accurate data collection for all applicable essential indicators.

Leadership Indicators

Leadership indicators are advanced disclosures that reflect better ESG maturity and responsible business practices.

These may include information related to:

• Advanced sustainability initiatives
• Product life cycle assessment
• Renewable energy adoption
• Circular economy practices
• Extended stakeholder engagement
• Human rights due diligence
• Supply chain sustainability
• Community impact assessment
• Environmental restoration initiatives
• Customer awareness programs

Leadership indicators help companies demonstrate stronger ESG performance and sustainability leadership.

Key BRSR Requirements

Companies preparing BRSR should focus on accurate data, proper documentation, and internal accountability.

Important BRSR requirements include:

• Identification of applicable reporting obligations
• Collection of ESG data
• Preparation of ESG policies
• Mapping of business activities
• Disclosure of sustainability risks
• Employee and worker data reporting
• Environmental performance reporting
• Governance disclosure
• Stakeholder complaint disclosure
• Principle-wise performance reporting
• Review of internal controls
• Board and management oversight
• Data verification and assessment readiness

Proper preparation helps reduce errors and improves the quality of BRSR disclosures.

Environmental Disclosures Under BRSR

Environmental disclosures are a major part of BRSR reporting.

Companies may need to report data related to:

• Energy consumption
• Renewable energy usage
• Fuel consumption
• Water withdrawal
• Water discharge
• Water recycling
• Air emissions
• Greenhouse gas emissions
• Waste generation
• Waste disposal
• Waste recycling
• Environmental compliance
• Environmental impact assessment
• Resource efficiency initiatives

Environmental data should be collected from reliable internal records, utility bills, meters, monitoring reports, and compliance documents.

Social Disclosures Under BRSR

Social disclosures focus on employees, workers, communities, customers, and other stakeholders.

Companies may need to report information related to:

• Total employees and workers
• Gender diversity
• Employee turnover
• Training programs
• Health and safety incidents
• Workplace benefits
• Human rights practices
• Grievance mechanisms
• Community development
• Customer complaints
• Product safety
• Accessibility and inclusion
• Supplier and value chain practices

Strong social reporting helps businesses demonstrate responsible treatment of people and stakeholders.

Governance Disclosures Under BRSR

Governance disclosures show how the company manages ethics, compliance, transparency, and accountability.

Companies may need to disclose information related to:

• Board oversight
• Code of conduct
• Anti-corruption practices
• Conflict of interest controls
• Compliance management
• Risk management
• Whistleblower mechanism
• Stakeholder grievance process
• Policy implementation
• Public policy advocacy
• Responsible procurement
• Data and information security practices

Governance disclosures are important for building investor and stakeholder confidence.

What is BRSR Core

BRSR Core is a focused set of ESG indicators introduced to improve reliability and comparability of sustainability disclosures.

BRSR Core includes key performance indicators from the BRSR framework and focuses on measurable ESG data.

BRSR Core may include indicators related to:

• Greenhouse gas emissions
• Water footprint
• Energy footprint
• Waste management
• Employee well-being
• Gender diversity
• Business openness
• Consumer complaints
• Responsible sourcing
• Value chain disclosures

For applicable listed entities, BRSR Core requires stronger data quality, internal controls, and third-party assessment or assurance as per applicable regulatory requirements.

Value Chain Disclosures Under BRSR

Value chain ESG disclosures are becoming increasingly important for large listed entities and their supply chain partners.

Value chain disclosures may involve ESG data from:

• Suppliers
• Vendors
• Contractors
• Distributors
• Customers
• Logistics partners
• Service providers
• Upstream business partners
• Downstream business partners

This means that even unlisted suppliers and MSMEs may receive ESG information requests from large listed companies.

Common value chain ESG information may include:

• Energy consumption
• Emissions data
• Waste management practices
• Labour law compliance
• Health and safety records
• Human rights practices
• Governance policies
• Supplier code of conduct compliance
• Environmental permits
• Sustainability initiatives

Businesses that supply to listed entities should prepare basic ESG documentation and data systems.

Documents Required for BRSR Reporting

Proper documentation is essential for accurate BRSR reporting.

Common documents may include:

• Company profile
• Corporate registration documents
• ESG policy
• Sustainability policy
• Environmental policy
• Human rights policy
• Health and safety policy
• Code of conduct
• Anti-corruption policy
• Whistleblower policy
• CSR policy
• Risk management policy
• Supplier code of conduct
• Employee records
• Worker records
• Training records
• Health and safety records
• Energy bills
• Water bills
• Waste disposal records
• Emission monitoring reports
• Environmental approvals
• Pollution control consents
• Customer complaint records
• Stakeholder grievance records
• Board and committee records
• Internal audit records
• Compliance registers

Additional documents may be required depending on the company’s sector, business activity, and reporting scope.

BRSR Reporting Process

The BRSR reporting process begins with understanding applicability and identifying the company’s ESG data requirements.

Once the requirements are finalized, the company collects data, prepares disclosures, reviews accuracy, and includes the report as part of the annual reporting process.

Step 1: Applicability Assessment

The first step is determining whether BRSR is applicable to the company.

The assessment generally considers:

• Listing status
• Market capitalization
• SEBI LODR applicability
• Annual report requirements
• Voluntary reporting decision
• Investor requirements
• Value chain requirements
• Customer ESG requirements

Correct applicability assessment helps companies plan the reporting process properly.

Step 2: ESG Data Mapping

The company should identify all ESG data points required under BRSR.

Data mapping may include:

• Department-wise data responsibility
• Location-wise data requirements
• Environmental data sources
• HR data sources
• Compliance data sources
• Governance records
• Customer complaint data
• Supplier information
• Value chain information
• Data owner identification

Data mapping helps avoid missing information during report preparation.

Step 3: Policy and Process Review

BRSR requires companies to disclose information about policies and management systems.

Companies should review:

• Existing ESG policies
• Sustainability policies
• Environment management systems
• Labour compliance systems
• Health and safety procedures
• Human rights practices
• Governance policies
• Grievance mechanisms
• Supplier management systems
• Risk management processes

If policies are missing or outdated, they should be prepared or updated before reporting.

Step 4: Data Collection

Accurate data collection is one of the most important parts of BRSR reporting.

Companies should collect data related to:

• Energy consumption
• Water consumption
• Waste generation
• Emissions
• Employee strength
• Worker strength
• Gender diversity
• Training hours
• Safety incidents
• Customer complaints
• CSR activities
• Stakeholder grievances
• Supplier details
• Governance records

All data should be supported by proper evidence and internal records.

Step 5: Data Verification

Before preparing the final report, companies should verify ESG data for accuracy and completeness.

Verification may include:

• Cross-checking source documents
• Reviewing calculations
• Validating environmental data
• Checking HR records
• Reviewing compliance documents
• Confirming governance disclosures
• Reconciling location-wise data
• Reviewing assumptions and estimates
• Identifying missing evidence

Data verification helps reduce reporting errors and improves stakeholder confidence.

Step 6: Preparation of BRSR Report

After data verification, the BRSR report is prepared in the prescribed format.

The report generally includes:

• General disclosures
• Management disclosures
• Principle-wise disclosures
• Essential indicators
• Leadership indicators
• ESG performance data
• Sustainability risks and opportunities
• Policy implementation details
• Stakeholder grievance information

The report should be clear, accurate, consistent, and supported by records.

Step 7: Review and Approval

The BRSR report should be reviewed internally before final disclosure.

The review may involve:

• ESG team
• Compliance team
• Finance team
• HR team
• Environment team
• Legal team
• Senior management
• Board or relevant committee
• External advisor, where applicable

Proper review helps ensure that the report is complete and aligned with applicable requirements.

Step 8: Filing and Disclosure

After approval, the BRSR report is disclosed as part of the company’s annual reporting process.

Companies should ensure:

• Timely disclosure
• Correct reporting format
• Proper internal approvals
• Consistency with annual report
• Supporting records availability
• Readiness for assessment or review
• Future-year data continuity

Timely and accurate disclosure helps companies maintain compliance and stakeholder trust.

Common Challenges in BRSR Reporting

Many companies face challenges while preparing BRSR reports.

Common challenges include:

• Lack of ESG awareness
• Poor data collection systems
• Missing environmental data
• Incomplete HR records
• Lack of supplier information
• Difficulty calculating emissions
• Weak internal controls
• Policy documentation gaps
• Multiple location data issues
• Department coordination problems
• Inconsistent reporting formats
• Limited internal expertise
• Delayed data submission
• Poor evidence management

These challenges can affect reporting accuracy and delay the BRSR preparation process.

Benefits of BRSR Reporting

BRSR reporting provides several benefits for companies.

These include:

• Better ESG transparency
• Improved regulatory compliance
• Stronger investor confidence
• Better risk identification
• Improved sustainability performance
• Enhanced brand reputation
• Better stakeholder communication
• Improved access to finance
• Stronger governance systems
• Better supply chain credibility
• Improved ESG rating readiness
• Long-term business sustainability

BRSR helps companies move from basic compliance to structured sustainability management.

Benefits for Listed Companies

For listed entities, BRSR reporting supports investor communication and regulatory compliance.

Key benefits include:

• Compliance with SEBI requirements
• Improved annual report quality
• Better ESG disclosure
• Stronger investor trust
• Improved governance perception
• Better sustainability benchmarking
• Reduced reputational risk
• Improved readiness for ESG assessment
• Better stakeholder engagement

Listed companies with strong BRSR reporting systems can demonstrate better accountability and responsible business conduct.

Benefits for Suppliers and MSMEs

BRSR reporting also affects suppliers and MSMEs connected to large listed companies.

Suppliers may be asked to provide ESG information such as:

• Energy usage
• Emissions data
• Waste management records
• Labour law compliance
• Safety records
• Human rights practices
• Environmental permits
• Governance policies
• Supplier code of conduct acceptance

MSMEs can benefit by improving ESG readiness and becoming more acceptable to large corporate buyers.

Benefits for suppliers include:

• Better vendor approval chances
• Improved supply chain credibility
• Better export readiness
• Reduced customer audit risk
• Improved operational efficiency
• Stronger compliance documentation
• Better long-term business opportunities

Cost of BRSR Reporting

The cost of BRSR reporting depends on several factors.

These include:

• Company size
• Number of locations
• Industry sector
• ESG data availability
• Internal team capacity
• Consultant involvement
• Technology requirement
• Data verification requirement
• BRSR Core applicability
• Assessment or assurance requirement
• Value chain disclosure requirement

Companies with organized records and existing ESG systems may complete BRSR reporting more efficiently.

Timeline for BRSR Reporting

The timeline for BRSR reporting depends on the company’s readiness and data availability.

The process generally includes:

• Applicability assessment
• Data mapping
• Policy review
• ESG data collection
• Data verification
• Report preparation
• Internal review
• Approval
• Annual report disclosure

Businesses starting BRSR reporting for the first time may require more time for data collection, policy development, and internal coordination.

Importance of Ongoing BRSR Compliance

BRSR reporting should not be treated as a one-time annual activity.

Companies should continuously maintain:

• ESG data records
• Environmental compliance documents
• Labour compliance records
• Governance policies
• Stakeholder grievance records
• Customer complaint records
• Supplier information
• Internal audit findings
• Sustainability performance data
• Corrective action records

Ongoing compliance helps companies improve reporting quality and reduce last-minute reporting challenges.

Benefits of Hiring a BRSR Consultant

A BRSR consultant helps companies manage the complete ESG reporting process efficiently.

Consulting support generally includes:

• BRSR applicability assessment
• ESG gap analysis
• BRSR data mapping
• Policy review and drafting
• ESG data collection support
• Environmental disclosure support
• Social disclosure support
• Governance disclosure support
• BRSR Core readiness
• Value chain ESG support
• Report preparation
• Internal review support
• Documentation management
• Assessment and assurance coordination
• Regulatory compliance advisory

Professional support helps businesses reduce reporting errors, improve disclosure quality, and complete BRSR reporting on time.

Learn the Complete BRSR Reporting Process

Planning to prepare ESG Reporting in India? Understanding BRSR applicability, BRSR format, ESG disclosure requirements, BRSR Core, value chain reporting, documentation, data verification, and annual report disclosure is essential before starting.

Read the complete guide here:

👉 https://www.greenpermits.in/05/sustainability-reporting-in-india-esg-brsr-guide/

📞 Get Expert Assistance for ESG Reporting and BRSR

Need assistance with ESG Reporting, BRSR Reporting, BRSR Core, value chain ESG disclosure, sustainability reporting, ESG data collection, policy documentation, gap analysis, assessment support, or complete regulatory compliance? The experts at Green Permits Consulting can guide you throughout the complete process.

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