The Rise of ESG Reporting in India – What Chartered Accountants Must Know
Introduction to ESG Reporting
As ESG (Environmental, Social, and Governance) concerns take center stage in global finance, India is seeing a rapid transformation in corporate reporting. With SEBI mandating the Business Responsibility and Sustainability Report (BRSR) for the top 1,000 listed companies, the role of Chartered Accountants (CAs) in ESG reporting has become more critical than ever. This article explores the rise of ESG reporting in India, the evolving regulatory landscape, and how CAs can lead this shift with confidence and competence.
Read more: Explore how AI is transforming financial services in India on CA Monk’s AI in Finance section.
Why ESG Reporting Matters Now
Globally, over 90% of large public companies now produce some form of ESG report. India is aligning with this trend, emphasizing sustainability as a core business function. SEBI’s introduction of BRSR marks a major policy step toward corporate transparency. This shift isn’t just regulatory—it’s strategic. Companies embracing ESG reporting build trust with investors, attract global capital, and ensure long-term resilience.
Key Insight: The EU’s Corporate Sustainability Reporting Directive (CSRD) and India’s BRSR represent a global movement toward uniform ESG disclosure.
Regulatory Evolution – NVGs → BRR → BRSR
India’s ESG journey began in 2011 with the National Voluntary Guidelines (NVGs). In 2012, SEBI introduced the Business Responsibility Report (BRR), making it mandatory for top listed firms. In 2021, the BRSR replaced BRR and became compulsory from FY2022–23.
Timeline Summary:
2011 – NVGs encourage sustainability reporting.
2012–2015 – BRR becomes mandatory for top 100–500 listed companies.
2021 – SEBI announces BRSR for top 1,000 listed companies.
Key ESG Frameworks & Standards
To ensure consistency, ESG reporting follows global frameworks:
GRI (Global Reporting Initiative): Widely adopted for materiality and stakeholder disclosures.
SASB/ISSB: Industry-specific metrics, now converging under the International Sustainability Standards Board.
TCFD: Focuses on climate-related risks and opportunities.
CSRD: Europe’s directive on ESG disclosures.
In India, companies align their disclosures with the NVGs and BRSR, often integrating global standards to appeal to foreign investors.
Role of Chartered Accountants
CAs are at the forefront of this transformation. Their responsibilities span:
Data governance: Collecting and verifying ESG data.
ESG assurance: Providing confidence in disclosures.
Materiality assessment: Identifying key ESG metrics.
Stakeholder communication: Building trust through transparency.
Conclusion
ESG reporting is not just a compliance checkbox—it’s a chance for CAs to lead in building transparent, ethical, and future-ready businesses. By aligning with BRSR norms, understanding global frameworks, and championing sustainability, Chartered Accountants can help shape a more responsible corporate India—earning trust from stakeholders and securing long-term business value.