ESG (Environmental, Social, and Governance) reporting is gaining immense significance as investors prioritize companies that prioritize sustainability and have a positive impact on society and the environment. By prioritizing ESG, businesses can reduce greenhouse gas emissions through the use of renewable energy sources, enhance employee interactions, and improve financial performance while lowering environmental impact. This blog delves into the global importance of ESG reporting and highlights India’s adoption of the Business Responsibility and Sustainability Report (BRSR) framework to ensure comprehensive sustainability practices.

Section 1: ESG Reporting Globally

Businesses worldwide are recognizing the importance of ESG reporting as investors increasingly seek sustainable and socially responsible firms. ESG practices can positively influence sustainability in various ways, including the use of renewable energy sources to reduce greenhouse gas emissions. Additionally, prioritizing ESG can strengthen employee interactions, leading to reduced turnover rates and higher morale. Moreover, ESG implementation enhances financial performance, reduces environmental impact, and improves social outcomes, making companies more sustainable in the long run.

Section 2: The Need for Enhanced Transparency and Accountability

In today’s uncertain environment, businesses must go beyond mere awareness, planning, and management of ESG challenges. Stakeholders demand increased transparency and accountability across all sectors, necessitating comprehensive non-financial reporting. Mainstream investors want assurance that organizations recognize, manage, and appropriately report serious ESG risks in their risk disclosures. To meet these demands, companies must align their sustainability actions with leading ESG reporting standards and integrate ESG analytics to provide stakeholders with a comprehensive understanding of the organization’s value generation through ESG and sustainability reporting.

Section 3: The Impact of COVID-19 and the Shift Towards Sustainability

The COVID-19 pandemic has heightened public awareness of ESG initiatives. Regulatory demands, shareholder capitalism, and evolving customer preferences have driven businesses to recognize the value of incorporating non-financial characteristics in their reporting. Emphasizing ESG practices is no longer an option but a necessity to thrive in the new normal. The increased focus on ESG reflects the collective goal of improving business ecosystems and building future resilience.

Section 4: ESG Reporting in India

India has recognized the importance of sustainability and set a net-zero emission target for 2070. To ensure companies address ESG challenges, India has introduced new ESG reporting requirements for the top 1,000 registered companies based on market capitalization. These companies must produce a comprehensive ‘Business Responsibility and Sustainability Report’ (BRSR) starting from the fiscal year 2022-2023. The BRSR includes extensive ESG disclosures, aligning with environmental, social, and governance metrics, and is a crucial component of companies’ annual reports, publicly accessible on official business websites and distributed to shareholders.

Section 5: Understanding BRSR and Its Importance

The Business Responsibility and Sustainability Report (BRSR) is a new reporting format mandated by the Securities and Exchange Board of India (SEBI) for India’s top 1,000 listed companies. BRSR requires companies to disclose significant ESG risks and opportunities, along with strategies to manage or adapt to these risks, including the associated financial costs. The BRSR draws influence from international reporting frameworks such as the GRI (Global Reporting Initiative) standards and incorporates both qualitative and quantitative ESG data. It serves as a compliance and communication tool for companies’ non-financial disclosures, providing stakeholders with a comprehensive understanding of their sustainability practices.

Section 6: The Importance of BRSR

The introduction of BRSR marks a significant step in mandatory ESG reporting in India. The framework is based on the 9 fundamental principles of the National Guidelines on Responsible Business Conduct (NGRBC), emphasizing ethical business practices, transparency, accountability, sustainable production, employee welfare, environmental protection, stakeholder responsiveness, promotion of human rights, and adherence to rules. By collecting information on these principles, the BRSR framework enables companies to demonstrate their commitment to responsible and sustainable business conduct.

Moreover, the adoption of the BRSR framework aligns India’s reporting practices with global sustainability standards and laws. As companies are increasingly required to operate ethically, maintain transparency, and assume responsibility in their reporting, the BRSR serves as a foundational document for stakeholders, especially investors, enabling benchmarking and facilitating informed decision-making.


ESG reporting is gaining prominence globally as businesses recognize the importance of sustainability and responsible business practices. The introduction of the Business Responsibility and Sustainability Report (BRSR) in India reflects the country’s commitment to aligning with international reporting standards. The BRSR serves as an effective tool for companies to disclose their ESG risks, opportunities, and strategies while meeting the demands for transparency and accountability from stakeholders. By embracing ESG reporting and integrating sustainability practices, businesses can thrive in the evolving global landscape, driving positive impact and ensuring long-term success.