Business Responsibility and Sustainability Reporting (BRSR) — A Complete 2025 Guide BRSR Core

Business Responsibility and Sustainability Reporting (BRSR) is a comprehensive ESG (Environmental, Social, and Governance) disclosure framework introduced by the Securities and Exchange Board of India (SEBI). The BRSR framework is designed to help companies disclose their sustainability performance in a structured, transparent, and globally aligned way.

Unlike traditional financial reporting alone, BRSR focuses on a broad set of themes — from emissions and water usage to employee well-being and ethical governance — allowing stakeholders to better understand a company’s long-term risks and impacts.

SEBI made BRSR mandatory for the top 1,000 listed companies by market capitalization in India, reflecting the growing importance of ESG compliance and stakeholder accountability.

1. What Is BRSR?

Business Responsibility and Sustainability Reporting (BRSR) is a structured ESG reporting framework that requires companies to disclose non-financial performance indicators related to responsible business conduct and sustainability. It is designed to standardize how Indian companies report on environmental, social, and governance factors, making reporting consistent and comparable across organizations and sectors.

BRSR replaced the older Business Responsibility Report (BRR), enhancing reporting depth and adding quantitative metrics. The BRSR framework covers areas such as carbon emissions, water and energy use, waste management, employee welfare, human rights, governance practices, and stakeholder engagement.

BRSR aligns with international reporting frameworks such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Task Force on Climate-related Financial Disclosures (TCFD) to provide interoperability for global investors.

Why Was BRSR Introduced? 

BRSR was introduced to improve the transparency of ESG performance among Indian companies and to align domestic reporting with global sustainability practices. Earlier reporting, such as the BRR, was largely qualitative and less standardized. BRSR expands this to include quantitative and comparable disclosures.

The framework aims to:

• Promote responsible business conduct and accountability
• Provide investors and stakeholders with credible ESG data
• Foster consistency and comparability in ESG reporting
• Encourage long-term sustainable growth
• Align Indian reporting norms with international standards

Investors increasingly consider ESG indicators when making decisions. BRSR helps bridge the gap between non-financial performance and investor requirements.

Who Must File BRSR Reports?

BRSR is mandatory for the top 1,000 listed companies in India based on market capitalization. These companies must include the BRSR section as part of their annual reports submitted under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

While mandatory only for these entities, other listed companies may choose to report voluntarily to signal their commitment to sustainability and attract ESG-focused investors. Organizations beyond this scope may also adopt BRSR to prepare for future requirements or align with global best practices.

When Did BRSR Become Mandatory?

BRSR was initially introduced on a voluntary basis and became mandatory for the top 1,000 listed companies starting with the financial year 2022–23. This means companies had to file their first mandatory BRSR disclosures with their annual reports for that period.

In July 2023, SEBI added a BRSR Core component and value chain disclosures to strengthen ESG requirements. The BRSR Core focuses on a set of essential performance indicators, while value chain disclosures extend reporting to key suppliers and customers.

SEBI has phased in assurance requirements and updated terminology to reduce financial burdens on reporting companies.

What Is Covered in a BRSR Report?

BRSR requires a wide range of disclosures categorized into three main sections:

• General Disclosures
• Management and Process Disclosures
• Principle-Wise Performance Disclosures

These form the backbone of the BRSR reporting template and reflect a company’s sustainability priorities and performance.

5.1 General Disclosures

The general disclosures section requires companies to provide basic information about the organization. This includes:

• Corporate characteristics (industry, size, ownership structure)
• Business activities and geographical presence
• Number of employees and workforce composition
• CSR applicability and spending
• Reporting boundary (standalone or consolidated)

General disclosures help stakeholders understand the scale and scope of a company before delving into its ESG performance.

5.2 Management and Process Disclosures

This section focuses on how the company manages sustainability and integrates responsible practices into its governance and strategy.

Companies need to disclose:

• Board and senior management oversight of ESG issues
• Policies and objectives related to responsible business conduct
• Stakeholder engagement mechanisms
• ESG risk assessment and mitigation procedures

These disclosures help showcase whether a company considers ESG as a strategic priority or just a compliance exercise.

5.3 Principle-Wise Performance Disclosures

This is the most detailed section of BRSR and covers performance against the nine principles of the National Guidelines on Responsible Business Conduct (NGRBC). Each principle includes:

• Essential indicators (mandatory metrics)
• Leadership indicators (voluntary but recommended aspirational metrics)

The nine principles include:

1. Ethical governance and transparency
2. Sustainable products and services
3. Employee well-being and safety
4. Stakeholder inclusivity
5. Human rights
6. Environmental responsibility
7. Public policy engagement
8. Inclusive development
9. Consumer protection and fairness

Together, these indicators cover a broad spectrum of corporate sustainability and responsibility metrics.

Key Facts About BRSR 

Here are some noteworthy facts:

• BRSR includes 140+ questions and indicators across environmental, social, and governance areas.
• It is mandatory for the top 1,000 listed companies in India.
• BRSR Core consists of essential ESG metrics requiring “assessment or assurance.”
• Value chain disclosures extend reporting to major suppliers and customers, covering up to 75% of purchases/sales.
• Green credit tracking has been introduced as a leadership indicator under Principle 6 to encourage environmental performance.
• Reporting includes both qualitative narratives and quantitative measurements.

These numbers demonstrate the scope and depth of BRSR as a reporting standard.

Recent Regulatory Updates & Context

SEBI has continued to refine the BRSR framework to balance data quality with compliance feasibility:

• December 2024: SEBI approved key decisions on BRSR Core, value chain disclosures, and assurance requirements. The expert committee recommended replacing “assurance” with “assessment or assurance” to ease compliance.
• Value chain disclosures were deferred from mandatory FY 2024–25 to FY 2025–26, with value chain data collection expected to include partners representing 2% or more of purchases/sales.
• Industry standards developed by ASSOCHAM, FICCI, and CII have been published to help standardize BRSR Core disclosures.

SEBI’s amendments signal a focus on making BRSR more workable while still maintaining robust disclosure standards that support investor needs.

Advantages of BRSR 

BRSR brings several benefits:

• Enhanced Transparency: It makes corporate sustainability performance clear and comparable across companies.
• Investor Confidence: ESG information helps investors assess long-term risks and opportunities.
• Accountability: Companies must explain how they manage environmental and social impacts.
• Global Alignment: Interoperability with global standards helps Indian companies attract international capital.
• Strategic Value: BRSR encourages organizations to embed sustainability into core business strategy rather than treat it as compliance alone.

Disadvantages & Criticisms

Despite its advantages, BRSR presents challenges:

• Reporting Burden: Collecting large volumes of data can strain resources.
• Cost of Assurance: Third-party validation adds cost and complexity.
• Supply Chain Complexity: Gathering accurate data from suppliers remains difficult.
• Data Quality Concerns: Ensuring consistent and reliable data can be challenging without strong internal systems.
• Adaptation Time: Newer companies may struggle with the technical expertise needed to report effectively.

These limitations are part of why SEBI continues to revise the framework to strike a balance between rigor and practicality.

Common Challenges Companies Face

Companies often encounter:

• Difficulty standardizing data across departments
• ESG expertise gaps internally
• Confusion over reporting boundaries and applicability
• Coordination challenges between sustainability and finance teams
• Cost and resource limitations for assurance and external verification

Addressing these requires strategic planning and investment in processes that integrate ESG into normal business operations.

What Companies Should Do to Prepare

To prepare effectively, companies should:

• Build cross-functional ESG teams
• Invest in data collection systems and digital tools
• Conduct materiality assessments to identify key ESG issues
• Engage with suppliers early to gather value chain data
• Train employees on ESG principles and reporting expectations
• Benchmark against peer companies and best practices
• Seek third-party assurance when needed for credibility

Adopting these best practices helps companies not just comply, but use BRSR to strengthen overall business performance.

Conclusion 

Business Responsibility and Sustainability Reporting is transforming how Indian companies think about and disclose sustainability. By mandating structured ESG reporting, SEBI has moved corporate responsibility beyond voluntary frameworks into a standardized, accountable practice.

BRSR’s emphasis on quantitative data, value chain transparency, and alignment with global standards enhances comparability and credibility in ESG disclosures. While reporting complexity and assurance costs remain challenges, continuous updates from SEBI — including phased implementations and revised terminology — show regulatory responsiveness to industry needs.

In an increasingly ESG-driven global economy, BRSR positions Indian companies to be more transparent, resilient, and competitive. It represents both a compliance requirement and a strategic tool for sustainable growth.