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Published on: May 23, 2025

Understanding Business Responsibility and Sustainability Reporting (BRSR) in India

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.

What is BRSR?

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.

Applicability

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.

The Evolution from BRR to BRSR

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:

→ Operate with integrity and transparency
→ Provide goods and services sustainably
→ Promote employee well-being
→ Respect stakeholder interests
→ Respect human rights
→ Protect and restore the environment
→ Engage in responsible policy advocacy
→ Promote inclusive growth and equitable development
→ Ensure customer value

Structure of BRSR

The BRSR framework is comprehensive and consists of three main sections:

General Disclosures: Basic company information including identity, structure, products, markets, employees, and global operations.
Management and Process Disclosures: Covers ESG risk management, stakeholder engagement, grievance mechanisms, and board-level sustainability oversight.
Principle-wise Performance Disclosures: Detailed reporting under each of the nine NGRBC principles, including policies, goals, KPIs, and performance on environmental, social, and governance fronts.

Key Features and Benefits of BRSR

Enhanced Transparency: Enables stakeholders to understand a company’s social and environmental impact.
Investor Confidence: Attracts ESG-conscious investors and improves access to capital.
Benchmarking and Comparability: Standardized format allows effective ESG benchmarking across industries.
Strategic Decision Making: Encourages integration of sustainability into core business strategy.
Global Alignment: Harmonized with global frameworks like GRI, SASB, and TCFD.

Challenges in Implementation

Despite its advantages, BRSR implementation poses some challenges:

Data Availability and Quality: Many companies lack the infrastructure to collect and report accurate ESG data.
Knowledge and Capacity: Significant gaps in understanding and executing ESG reporting effectively.
Standardization Issues: Evolving ESG metrics and absence of clear guidance on certain KPIs.
Compliance Burden: Smaller companies may view BRSR as an added burden if not strategically integrated.

Industry Response and the Road Ahead

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.

Conclusion

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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