In today's global economy, sustainability and ethical responsibility are no longer optional — they are business imperatives. As environmental concerns and stakeholder expectations rise, regulators worldwide are taking steps to ensure companies report not just their financial performance but also their social and environmental impact. In India, one of the most significant strides in this direction is the introduction of the Business Responsibility and Sustainability Report (BRSR) by the Securities and Exchange Board of India (SEBI).
This blog aims to provide a comprehensive overview of BRSR, including its background, structure, benefits, and how Indian companies are adapting to it.
BRSR stands for Business Responsibility and Sustainability Reporting, a reporting framework introduced by SEBI in May 2021. It is designed to enhance the quality and quantity of disclosures related to Environmental, Social, and Governance (ESG) parameters by Indian corporates.
The BRSR replaces the earlier Business Responsibility Report (BRR), which had been mandated for the top 500 listed companies in India since 2012. BRSR expands upon BRR by incorporating sustainability metrics, encouraging companies to go beyond compliance and integrate responsible practices into their core business strategies.
From the financial year 2022–23 onward, SEBI has mandated the top 1,000 listed companies (by market capitalization) to file BRSR as part of their annual report. However, other companies are encouraged to voluntarily adopt the framework, signaling their commitment to sustainable development.
While the BRR framework was a step forward in driving corporate responsibility, it had several limitations. It lacked comprehensive ESG metrics and was more compliance-oriented than impact-driven. Recognizing these gaps, SEBI introduced the BRSR framework based on the Ministry of Corporate Affairs' National Guidelines on Responsible Business Conduct (NGRBC).
The NGRBC consists of nine principles, and the BRSR framework aligns with them. These guidelines urge companies to:
The BRSR framework is comprehensive and consists of three main sections:
Despite its advantages, BRSR implementation poses some challenges:
Since its introduction, many companies have embraced BRSR as a strategic opportunity. Firms in sectors like IT, FMCG, and finance are leveraging it to communicate ESG progress and engage stakeholders effectively.
SEBI has also introduced BRSR Core—a focused subset of BRSR KPIs requiring assurance—for the top 250 listed companies starting FY 2023–24, aiming to enhance trust and comparability of reported data.
BRSR marks a pivotal shift in Indian corporate reporting, moving from compliance to strategic sustainability. It empowers businesses to drive value not just for shareholders, but for society and the environment.
By adopting BRSR, companies not only meet regulatory requirements but also position themselves as responsible and future-ready players in an ESG-conscious marketplace. As India moves toward a more sustainable economy, BRSR will be a key enabler of ethical and inclusive business growth.
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