The initiation of India’s Business Responsibility and Sustainability Report (BRSR) in 2021 marks a big shift in ESG reporting within the nation, aligning with India’s commitment to achieving Net Zero by 2070.
BRSR is a framework created by the Securities and Exchange Board of India (SEBI) to promote the integration of sustainable and responsible practices within companies. Its primary focus is on measuring and reporting the performance of companies in environmental, social, and governance (ESG) aspects, effectively demonstrating their positive contributions to society.
This initiative seeks to enhance transparency and accountability by requiring companies to provide detailed reports on their sustainability efforts, and subsequently improve ESG reporting in India. With the introduction of BRSR, SEBI is moving towards mandatory assurance on critical aspects of this new, comprehensive ESG reporting framework, which aims to improve the quality of sustainability reporting among Indian corporations. This approach represents an evolution from the previous Business Responsibility Report (BRR), pushing for higher ESG reporting standards across the corporate landscape.
BSRS Core, an extension of the BRSR framework, focuses specifically on ESG disclosures and assurance related to the value chain.
Some key points about BRSR Core:
Scope: Currently, the BRSR Core applies to the top 150 listed companies (by market capitalization) in India, and the objective is to encourage disclosures of Scope 2 and Scope 3 emissions.
Disclosure Requirements: These companies are required to disclose relevant ESG parameters related to their value chain. This includes aspects such as environmental impact, social initiatives, and governance practices.
Assurance: Companies must provide assurance (verification) of the disclosed information. This ensures credibility and transparency.
Timeframe: BRSR Core was introduced for reporting from FY 2023-24 onward.
According to SEBI, starting from the financial year 2023-24, the top 150 listed companies by market capitalization are mandated to subject their BRSR Core to reasonable assurance. This requirement gradually expands, with the top 250 listed entities in 2024-25, the top 500 listed entities in 2025-26, and the top 1,000 listed companies by 2026-27.
The specified glide path for ensuring the BRSR Core is expected to build confidence among investors, regulators, and various ESG rating agencies.
BRSR Reporting and Disclosure Areas – Mapping KPIs
SEBI aims to enhance global comparability and standardize sustainability reporting by strategically aligning BRSR with international reporting frameworks and integrating key performance indicators (KPIs) into the BRSR. The framework closely tied to ESG reporting in India, aligns with global sustainability standards, such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB) and offers valuable insights into how sustainability reporting interfaces with local business practices.
By customizing reporting requirements to suit the nuances of the Indian business landscape, the BRSR ensures that the reporting process complies with and is meaningful within the context of local economic, social, and environmental considerations.br
3 MAIN SECTIONS OF BRSR Reporting:
General Disclosures: This section covers basic company information and includes details of business activities, reporting boundaries (whether the reporting is done for the entity on a stand-alone or consolidated basis), and other relevant information. For instance, it seeks disclosure of the reporting boundary (Section A, Question 13), which helps listed entities ensure consistency in reporting across their reports.
Management and Process Disclosures: This section focuses on the management processes related to responsible business conduct. It includes information about policies, risk management, stakeholder engagement, and other relevant aspects. For example, it delves into areas such as governance, risk assessment, and stakeholder engagement practices.
Principle-wise Performance Disclosures: This section emphasizes the company’s performance in alignment with the principles laid down in the National Guidelines for Responsible Business Conduct (NGRBCs) It covers specific aspects of responsible business practices, such as environmental impact, social initiatives, and economic contributions.
The BRSR Core includes KPIs across nine ESG attributes, tailored to the unique context of Indian and emerging markets and these KPIs facilitate improved global comparability with international reporting standards. Some additional KPIs relevant to the Indian economy include job creation in small towns, business openness, and gross wages paid to women, etc.
Preparing Your ESG Teams
Training ESG teams is paramount for effective BRSR reporting. The importance of this training lies in equipping teams with the knowledge and skills necessary to navigate the extensive requirements of BRSR reporting. As a complex reporting framework encompassing diverse aspects of business responsibility, sustainability, and ESG, BRSR demands a comprehension of global best practices and local considerations.
Training ESG teams ensures they are well-versed in identifying, measuring, and reporting on key performance indicators (KPIs) relevant to the organization’s impact on the environment, society, and governance, aligning with ESG reporting best practices. Collaboration is vital, both within the ESG teams and across functional departments, to integrate relevant ESG metrics and gather comprehensive data. Strengthening data collection mechanisms, embracing technology solutions, and fostering stakeholder engagement are essential steps. Furthermore, a proactive approach to risk assessment, continuous improvement, and adherence to ethical considerations should be emphasized.
Moreover, fostering a culture of sustainability within the organization is intricately linked to the effectiveness of BRSR Reporting. Beyond the technicalities of compliance, a sustainable culture permeates the organization, influencing day-to-day decisions and strategic planning.
Building a Sustainable Future
Beyond compliance, BRSR reporting inspires commitment to continuous improvement in ESG practices. Companies, driven by the ethos of sustainability, are propelled to evolve their strategies and operations. This commitment transcends regulatory requirements, fostering innovation and resilience in the face of evolving environmental and social challenges.
As businesses integrate sustainability considerations into their core operations, BRSR becomes a catalyst for transformative change. Ultimately, this commitment to continuous improvement aligns with the goals of responsible corporate citizenship and positions businesses as stewards of a sustainable future, where economic growth is harmonized with environmental stewardship and social well-being.
Tools for Streamlined Reporting – Benchmark Gensuite’s ESG Reporting Software
Technology becomes crucial for enhancing accuracy and efficiency in reporting, overcoming the challenges posed by manual processes. Our ESG reporting software and digital tools automate data collection, reporting, and analysis, significantly reducing the time and cost associated with disclosures. By embracing a holistic, cloud-based approach, organizations can streamline the gathering of accurate ESG data across diverse business sites and functions. This ensures compliance with SEBI under BRSR and enables companies to report investment-grade ESG metrics to stakeholders.
Benchmark Gensuite’s comprehensive suite of digital ESG management tools goes beyond reporting, providing insights into ESG performance and empowering organizations to set ambitious goals and track progress over time. Embrace technology to streamline reporting, unlocking new levels of accuracy and efficiency in your reporting.
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