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What Every Business Must Know
From SEBI's BRSR mandate to global sustainability frameworks — a practical guide to ESG reporting compliance, strategy, and competitive advantage for Indian businesses.
By AGA Research Desk March 2026
12 min read
ESG · Audit · Compliance
Environmental, Social, and Governance (ESG) reporting has moved from a voluntary best-practice to a regulatory imperative for businesses in India. With SEBI mandating the Business Responsibility and Sustainability Report (BRSR) for the top 1,000 listed companies — and global investors, lenders, and supply chains demanding ESG transparency — the question for businesses is no longer whether to report, but how to report well.📋 In This Article
- What Is ESG Reporting?
- Why ESG Reporting Matters for Indian Businesses
- SEBI's BRSR Framework: India's ESG Mandate Explained
- Global ESG Frameworks You Should Know
- Breaking Down the Three Pillars: E, S & G
- Common ESG Reporting Challenges in India
- How to Start Your ESG Reporting Journey
- How AGA Can Help
01 — OverviewWhat Is ESG Reporting?
ESG reporting is the process by which a company discloses its performance and impact across three non-financial dimensions: Environmental (E), Social (S), and Governance (G). Unlike traditional financial reporting, ESG disclosures capture how a business manages risks and opportunities related to climate change, human capital, supply chain ethics, board diversity, and corporate accountability.
For businesses in India, ESG reporting serves a dual purpose — fulfilling regulatory obligations under SEBI's BRSR framework, and building trust with investors, customers, employees, and other stakeholders who increasingly base decisions on non-financial data.
🌿Environmental (E)
Carbon emissions, energy use, water consumption, waste management, and climate risk exposure.
🤝Social (S)
Employee welfare, diversity & inclusion, community impact, human rights, and supply chain labour practices.
⚖️Governance (G)
Board composition, executive remuneration, anti-corruption policies, audit independence, and shareholder rights.
02 — Significance Why ESG Reporting Matters for Indian Businesses
India is one of the world's fastest-growing economies — and also one of its most climate-vulnerable. The intersection of regulatory reform, foreign investment flows, and consumer awareness is making ESG performance a genuine business differentiator. Here is why ESG reporting should be a strategic priority, not just a compliance checkbox:
- Access to Capital:Foreign institutional investors and ESG-focused funds in India now screen for BRSR disclosures and global ESG ratings before committing capital.
- Regulatory Compliance:SEBI has mandated BRSR for the top 1,000 listed companies by market cap; non-compliance carries disclosure penalties and reputational risk.
- Supply Chain Integration:Global buyers — especially in Europe and the US — are requiring ESG data from Indian vendors and suppliers as part of their own reporting obligations (e.g., EU CSRD).
- Talent Attraction:High-quality professionals, particularly Gen Z and millennial talent, increasingly evaluate employers on ESG commitments.
- Risk Management:Structured ESG reporting forces management to identify operational, reputational, and regulatory risks that traditional financial audits often miss.
- Cost Reduction:Measuring energy, water, and waste often reveals significant operational inefficiencies and cost-saving opportunities.
03 — India's ESG MandateSEBI's BRSR Framework Explained
The Business Responsibility and Sustainability Report (BRSR) is SEBI's primary ESG disclosure mechanism for listed Indian companies. Introduced in 2021 and made mandatory from FY 2022–23 for the top 1,000 listed companies (by market cap), BRSR replaced the earlier Business Responsibility Report (BRR).
Key SEBI Update (2023): SEBI introduced BRSR Core — a subset of high-priority ESG metrics requiring reasonable assurance from a third-party auditor. This marks a significant shift from voluntary disclosure toward independently verified sustainability data, placing India's ESG regime on par with international best practices.
BRSR Core
Who must comply? Currently mandatory for the top 1,000 NSE/BSE listed companies. However, SEBI has signalled a gradual expansion of scope — and many unlisted large companies and public-sector enterprises are proactively adopting BRSR to prepare for future mandates and to satisfy investor due-diligence requirements.
04 — Global Standards Global ESG Frameworks You Should Know
Indian companies with global operations, overseas listings, or multinational investor bases must also be familiar with the evolving global ESG reporting landscape:
GRI — Global Reporting Initiative, ISSB / IFRS S1 & S2TCFD — Climate Disclosures,UN SDGs,EU CSRD,CDP (Carbon Disclosure),SASB Standards
The International Sustainability Standards Board (ISSB), operating under IFRS, issued its landmark IFRS S1 (general sustainability disclosures) and IFRS S2 (climate-related disclosures) standards in 2023. India's BRSR Core is already being aligned with ISSB standards, making it likely that future SEBI updates will incorporate these global benchmarks.
For Indian exporters with European clients, the EU Corporate Sustainability Reporting Directive (CSRD) is particularly important — it extends ESG disclosure obligations to non-EU companies supplying to large EU entities, meaning ESG readiness is now a trade requirement, not just a capital markets concern.
05 — Deep Dive Breaking Down the Three Pillars
🌿 Environmental: Measuring Your Carbon & Resource Footprint
The Environmental pillar covers a company's direct and indirect impact on the natural world. For Indian businesses, key areas include: Greenhouse Gas (GHG) emissions across Scope 1 (direct), Scope 2 (purchased energy), and increasingly Scope 3 (value chain); water stewardship (particularly important in water-stressed regions of India); energy transition toward renewable sources; and waste and circular economy practices.
🤝 Social: People, Communities & Supply Chains
The Social pillar captures how a company manages relationships with its employees, communities, customers, and supply chain partners. Under BRSR, this includes disclosures on employee health and safety, training hours, gender pay equity, turnover rates, and CSR expenditure. For manufacturing and trading companies, supply chain labour standards are increasingly under scrutiny from global buyers.
⚖️ Governance: Transparency & Accountability
Governance disclosures underpin investor trust. Key metrics include board independence and diversity, audit committee effectiveness, related-party transaction oversight, whistleblower mechanisms, and anti-bribery & corruption (ABAC) policies. For chartered accountants, this pillar closely intersects with statutory audit and secretarial compliance work.
06 — Obstacles Common ESG Reporting Challenges in India
While the intent behind ESG reporting is sound, many Indian businesses — especially mid-sized enterprises and those new to sustainability disclosures — encounter significant practical hurdles:
📊Data Collection Gaps
ESG metrics such as Scope 3 emissions, water intensity, and supply chain assessments require data systems that most companies haven't built yet.
🔄Lack of Standardisation
Multiple overlapping frameworks (BRSR, GRI, ISSB) create confusion about which disclosures to prioritise and how to align them.
✅Assurance Readiness
BRSR Core requires third-party assurance. Many companies' internal controls and data governance practices are not yet audit-ready.
🏭Supply Chain Complexity
Extending ESG assessments to vendors and suppliers — especially in informal sectors — is operationally demanding.
👩💼Skill & Awareness Gaps
Finance and compliance teams often lack ESG-specific training, making it hard to distinguish material disclosures from peripheral ones.
⚠️Greenwashing Risk
Pressure to appear ESG-compliant can lead to overstated claims — which attract regulatory scrutiny and reputational damage.
07 — Action Plan How to Start Your ESG Reporting Journey
Whether you are a listed company preparing for BRSR compliance or an unlisted business building voluntary ESG credentials, a structured approach is essential. Here is a practical roadmap:
- Materiality Assessment:Identify the ESG topics most material to your business, industry, and stakeholder groups. This focuses reporting efforts and avoids data overload.
- Baseline Data Audit:Map what data you currently collect across E, S, and G dimensions. Identify gaps — especially for BRSR Core's assured metrics.
- Framework Alignment:Decide which frameworks apply (BRSR mandatory; GRI or ISSB for global audiences) and create a single disclosure architecture that satisfies multiple requirements.
- Internal Controls & Data Systems:Set up robust data collection processes — this is where CA firms with IT audit expertise can add significant value.
- Draft & Review:Prepare your BRSR / ESG report, ensure disclosures are factual, evidence-based, and avoid greenwashing.
- Third-Party Assurance:Engage an accredited assurance provider for BRSR Core metrics. External verification adds credibility and is increasingly required by investors.
- Continuous Improvement:ESG is a journey. Set targets, track progress year-on-year, and embed sustainability into your business strategy — not just your disclosure calendar.
08 — AGA's Role How A. George & Associates Can Help
With over 37 years of experience in audit, assurance, risk management, and regulatory compliance, A. George & Associates (AGA) is uniquely positioned to support businesses across their ESG reporting lifecycle — from initial materiality assessment to third-party assurance of BRSR Core metrics.
- ESG Readiness & Gap Analysis: We assess your current disclosures against BRSR, GRI, and ISSB requirements and identify priority gaps.
- BRSR Report Preparation: End-to-end support in drafting, structuring, and reviewing your BRSR disclosure for SEBI compliance.
- Third-Party ESG Assurance: As qualified auditors with expertise in information systems and risk, AGA provides credible assurance on BRSR Core metrics.
- Internal Controls for ESG Data: We help design data collection and governance frameworks that make ESG disclosures audit-ready and defensible.
- Supply Chain ESG Assessment: Vendor and supply chain ESG due diligence for companies with global buyers and investor scrutiny.
- ESG Integration with Tax & Regulatory Strategy: Aligning ESG investments with available tax incentives, green financing structures, and regulatory benefits