What is Business Responsibility and Sustainability Reporting (BRSR) and Why is it Important?
Business Responsibility and Sustainability Reporting (BRSR) is a comprehensive framework introduced by the Securities and Exchange Board of India (SEBI) for listed companies. It requires businesses to disclose their performance across Environmental, Social, and Governance (ESG) factors. The BRSR replaces the earlier Business Responsibility Report (BRR) and is designed to be more closely aligned with global sustainability reporting standards.
Why BRSR MattersThe primary goal of BRSR is to help companies move beyond financial performance alone and evaluate their broader impact on people and the planet. Through standardized and quantifiable metrics—such as
- Energy consumption
- Water usage
- Employee well-being
- Ethical business practices
BRSR enables investors, regulators, and stakeholders to make more informed decisions.
Eligibility for Business Responsibility and Sustainability Reporting (BRSR)
The Securities and Exchange Board of India (SEBI) has made BRSR mandatory for the top 1,000 listed companies in India, ranked by market capitalization. This marks a significant step toward enhancing corporate transparency and accountability on Environmental, Social, and Governance (ESG) parameters.
Who Needs to Comply?The primary goal of BRSR is to help companies move beyond financial performance alone and evaluate their broader impact on people and the planet. Through standardized and quantifiable metrics—such as
- Mandatory: Top 1,000 listed companies in India (by market capitalization)
- Voluntary: Other listed companies and non-listed companies, including those on the SME exchange, are encouraged to adopt BRSR
Key Components of BRSR
| Section | Description |
|---|---|
| General Disclosures | Basic company details, corporate structure, operations, and listing information. |
| Management and Process Disclosures | Details on governance, policies, stakeholder engagement, and sustainability strategy oversight. |
| Principle Wise Process Disclosures | Performance metrics based on the 9 principles of the National Guidelines on Responsible Business Conduct (NGRBC). |
| Leadership Indicators | Voluntary disclosures demonstrating sustainability leadership, best practices, and future readiness. |
| Value Chain Reporting | Disclosures on ESG performance across suppliers, distributors, and other value chain partners (voluntary but increasingly expected). |
| Assurance and Certifications | External validation or certifications related to ESG data, policies, and initiatives (voluntary but helps improve credibility and investor confidence). |
Understanding Business Responsibility and Sustainability Reporting (BRSR) Framework
| Framework Element | Description |
|---|---|
| NGRBC Alignment | BRSR is based on the 9 principles of NGRBC, focusing on ethics, sustainability, and responsible business practices. |
| Section A : General Disclosures | Covers organisational profile, financials, operations, and regulatory information. |
| Section B : Process and Management Disclosures | Addresses the company’s governance structure, policies, stakeholder engagement, and sustainability integration into business strategy. |
| Section C : Principle Wise Performance | Requires companies to report KPIs related to the 9 NGRBC principles under Essential and Leadership indicators. |
| Essential Indicators | Mandatory metrics showcasing minimum disclosures related to each principle. |
| Leadership Indicators | Voluntary metrics that highlight best practices and advanced ESG maturity. |
BRSR: Your Roadmap to ESG Excellence
Materiality MappingFocus on what truly matters. Identify the ESG factors that have the biggest impact on your industry and business, so your reporting drives real value.
Stakeholder PrioritisationListen, engage, act. Understand the needs of employees, customers, and investors to shape an ESG strategy that resonates with everyone who matters.
Digital Audit TrailTransparency you can trust. Keep a secure, verifiable record of all ESG data, ensuring accuracy, accountability, and confidence for regulators and investors alike.