BRSR (Business Responsibility and Sustainability Reporting) is India’s system for checking how responsibly companies operate. Created by SEBI, it makes firms share clear and comparable details on environmental, social, and governance (ESG) matters.
Business today is not only about profits. People want to know if companies pollute rivers, use clean energy, or treat workers fairly. BRSR acts like a report card of sustainability, helping investors, banks, and customers compare companies through facts instead of vague promises.
What BRSR Means and Why It Exists
BRSR is designed to bring transparency. Earlier, many companies shared only broad statements like “We care about the planet” or “We believe in people.” But there were no common rules on what to report. That made it hard for investors to judge if a company was really sustainable or simply making claims.
With BRSR, there is now one single format. Every company reports in the same way, using the same type of information. This makes comparisons much easier.
For example, imagine two companies in the same industry. One company may say it reduced greenhouse gas emissions by 10%. Another may say it used 50% renewable energy. Both sound good, but unless they use a common system, investors cannot properly compare them. BRSR fixes this gap.
Another reason for BRSR is demand from stakeholders. Investors want trustworthy ESG data before putting money in. Banks need to see risks before lending. Customers too want to support responsible brands. Without data, it is like investing while blindfolded. That is why SEBI made BRSR mandatory for India’s largest listed companies.
So who must follow this? The top 1,000 listed companies in India, based on their market value as of March 31 each year. Smaller listed companies are not forced, but they can also publish reports voluntarily.
What Goes Inside a BRSR Report
The BRSR report is carefully structured. It does not just contain random numbers. Instead, it follows a clear pattern so readers can quickly understand a company’s ESG performance.
The report starts with the company profile and governance details. It shows who is running the company and what policies guide them. Then, it is divided into nine principles that cover all aspects of responsibility. Each principle has specific key performance indicators (KPIs).
Some examples of what companies must disclose are:
- Energy use and the share of renewable energy.
- Greenhouse gas emissions released by operations.
- Water usage and how much waste is generated.
- Employee statistics, like diversity and working conditions.
- Workplace safety, including accidents or incidents.
- Community spending, such as funds used for social projects.
This way, the BRSR is like a health check-up of a company’s sustainability. It shows strengths, weaknesses, and areas where improvement is needed.
There is also something known as BRSR Core. This is a smaller, priority set of indicators picked out by SEBI. These are considered the most crucial numbers. Importantly, BRSR Core requires third-party verification. In simple words, an external expert must check the data and confirm it is accurate. This ensures the information is trustworthy and not self-reported without checks.
In addition, SEBI has introduced value-chain reporting. Companies are asked to share ESG details not only about themselves but also from their major suppliers and customers. This is important because a company’s impact does not stop at its own gate. The raw materials it buys or the products it sells also affect the environment and society.
Key Features: Assurance, Timeline, and Benefits
One unique feature of BRSR is the difference between assurance and assessment.
- Assurance is like a full audit. An expert does a detailed, strict check of the numbers.
- Assessment is lighter but still credible. It involves reviewing data without a full audit.
SEBI now allows companies to use both, giving them some flexibility. For critical numbers under BRSR Core, assurance is required.
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The rule has been rolled out in stages. BRSR became mandatory for the top 1,000 companies starting from the financial year 2022–23. For assurance under BRSR Core, SEBI began with the top 150 companies and plans to gradually expand it to more companies over time.
Another connected idea is green credits. These are linked with sustainability goals and reporting. While details may vary, the idea is to create accountability and recognition for companies making genuine efforts in environmental protection.
So why should companies actually care about BRSR? The answer lies in its benefits. Proper ESG reporting through BRSR:
- Helps companies gain easier access to capital from investors.
- Reduces risks of penalties, supply chain disruptions, or sudden shocks.
- Improves reputation with customers, employees, and partners.
In simple words, good reporting is not just paperwork. It directly supports growth, trust, and stability.
