Sustainability is no longer a buzzword reserved for annual reports or CSR sections of corporate websites. In India, it has steadily moved into the core of how businesses are expected to operate, measure impact, and communicate with stakeholders. One of the most significant steps in this direction has been the introduction of Business Responsibility and Sustainability Reporting (BRSR) by SEBI.
This blog explores how BRSR is shaping sustainability reporting in Indian companies, why it matters, and what lies beyond compliance.
Understanding BRSR in Simple Terms
BRSR is a standardized framework that requires India’s top listed companies to disclose their performance across environmental, social, and governance (ESG) parameters. It replaced the earlier Business Responsibility Report (BRR) with a more detailed, data-driven, and outcome-focused approach.
At its core, BRSR is built on the nine principles of the National Guidelines on Responsible Business Conduct (NGRBC). These principles cover ethical governance, employee welfare, environmental protection, consumer responsibility, human rights, and inclusive growth.
The idea is simple: if sustainability is reported in a uniform manner, it becomes easier to compare companies, track progress, and hold businesses accountable.
Why Standardization Matters
Before BRSR, sustainability reporting in India lacked consistency. Companies disclosed what they felt comfortable sharing, often using different metrics and narratives. This made it difficult for investors, regulators, and even the public to assess real sustainability performance.
BRSR changes this by bringing structure and comparability. Standardized disclosures help:
- Investors evaluate ESG risks and opportunities
- Regulators monitor compliance and impact
- Companies identify gaps in their sustainability practices
- Stakeholders build trust through transparent reporting
In short, standardization turns sustainability from a vague promise into something measurable and actionable.
What Indian Companies Are Doing Right
Many Indian companies have taken BRSR seriously and used it as an opportunity rather than a burden. Large organizations with established ESG teams are increasingly integrating sustainability metrics into decision-making, supply chain management, and long-term strategy.
Some positive trends include:
- Better tracking of energy use, emissions, and waste
- Increased focus on employee health, safety, and diversity
- Stronger governance structures and ethical policies
For these companies, BRSR has become a mirror that reflects both achievements and areas needing improvement.
Challenges on the Ground
Despite progress, BRSR implementation is not without challenges. For many companies, especially those new to ESG reporting, data collection remains a major hurdle. Environmental and social data often sits across departments, making coordination difficult.
Another common issue is treating BRSR as a compliance exercise rather than a strategic tool. When reporting is driven only by deadlines, it risks becoming a checklist rather than a catalyst for change.
There is also the challenge of ensuring data accuracy and avoiding superficial disclosures that look good on paper but do not translate into real-world impact.
Moving Beyond Compliance
The true potential of BRSR lies beyond reporting. Companies that use BRSR insights to guide business decisions are better positioned to manage risks, attract responsible investors, and build long-term resilience.
To move beyond compliance, organizations need to:
- Embed ESG goals into core business strategy
- Invest in internal sustainability capacity
- Use BRSR data to drive continuous improvement
- Focus on outcomes, not just disclosures
When sustainability becomes part of everyday business thinking, reporting naturally becomes more meaningful.
Conclusion
BRSR marks an important shift in India’s corporate sustainability landscape. By standardizing how companies report ESG performance, it creates a common language for responsibility, transparency, and accountability.
While compliance is the first step, the real value of BRSR lies in how companies use it to create positive environmental and social impact. As Indian businesses evolve, BRSR has the potential to move sustainability from paper to practice.