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Getting Started with BRSR Reporting for 2024-25

2025-02-28

As sustainability and corporate responsibility take center stage, businesses in India must comply with the Business Responsibility and Sustainability Report (BRSR) framework mandated by SEBI. In this blog, we will walk you through the journey of BRSR reporting, its significance, key principles, and how organizations can effectively implement it.

Understanding the Evolution of BRSR Reporting

Sustainability reporting in India has come a long way. While voluntary sustainability disclosures existed for decades, the journey of structured reporting began in 2012 when SEBI introduced the Business Responsibility Report (BRR) for the top 100 listed companies. These reports were aligned with the National Voluntary Guidelines (NVGs) developed by the Ministry of Corporate Affairs.

Fast forward to 2021, SEBI recognized the need for a more structured and indigenous sustainability reporting framework and introduced BRSR, which became mandatory for the top 1000 listed companies in 2022. Unlike voluntary frameworks like GRI, SASB, TCFD, CDP, and IR, BRSR is a structured, machine-readable, and standardized framework that ensures comprehensive ESG disclosures.

Why BRSR Reporting Matters?

  • Mandatory Compliance: Unlike voluntary ESG frameworks, BRSR is legally mandated for top companies in India.
  • Holistic Disclosure: Covers multiple ESG aspects, from employee well-being to environmental footprint.
  • Interoperability: Facilitates easier alignment with international sustainability frameworks like GRI, SASB, and TCFD.
  • Machine Readable: SEBI has adopted the XBRL format, enabling automated processing and analysis of ESG data.

Breaking Down of the BRSR Framework

The BRSR framework consists of three sections:

  1. Section A: General Disclosures (24 questions)
    Company details, employee breakdown, turnover, compliance, risks, and stakeholder engagement.
  2. Section B: Management and Process Disclosures (12 questions)
    Policies and governance mechanisms related to ESG principles.
  3. Section C: Principle-wise Performance Disclosure (104 questions)
    Covers nine key principles under ESG, with both essential indicators (62 questions) and leadership/voluntary indicators (42 questions)

The 9 Key Principles of BRSR

  1. Principle 1: Businesses should conduct and govern themselves with integrity, and in a manner that is ethical, transparent, and accountable
    Information on
    - training and awareness on BRSR principles,
    - Fines and penalties incurred in the financial year
    - Anti-corruption and anti-bribary policies and related information
  2. Principle 2: Businesses should provide goods and services in a manner that is sustainable and safe
    Information on
    - R&D expenditures
    - Sustainable sourcing, Extended Producer Responsibility and LCA
  3. Principle 3: Businesses should respect and promote the well-being of all employees, including those in their value chains
    Information on
    - Wellbeing initiatives of the company , including insurances, workplace accessibility and career development
    - Safety related incidents and complaints
  4. Principle 4: Businesses should respect the interests of, and be responsive to, all stakeholders, especially those who are disadvantaged, vulnerable, and marginalized
    Information on
    - engagement with stakeholders, especially disadvantaged, vulnerable and marginalised
  5. Principle 5: Businesses should respect and promote human rights
    Information on
    - Employee training on human rights
    - Minimum wage
    - Complaints related to human rights and related grievance addressal mechanism
  6. Principle 6: Businesses should respect and make efforts to protect and restore the environment
    Information on
    - essential and leadership indicators on Energy consumption , Water consumption , Pollution , Emissions , Waste Management and Biodiversity
  7. Principle 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent
    Information on
    - affiliations with trade and industry chambers and initiatives on anti-competitive conduct of the company.
  8. Principle 8: Businesses should promote inclusive growth and equitable development
    Information on
    - Social impact assessments, Rehabilitation and Resettlement undertaken, basically ensuring corporate social responsibility
  9. Principle 9: Businesses should engage with and provide value to their consumers in a responsible manner
    Information on
    - consumer complaints, initiatives on cyber security and data privacy

What is BRSR Core?

SEBI introduced BRSR Core in 2023, mandating reasonable assurance on 30 key parameters across 9 ESG categories, ensuring the reliability of disclosures. Compliance is being phased in for the top 150 listed companies (2023-24), 250 (2024-25), and 500 by 2026-27.

How to Get Started with BRSR Reporting?

For companies embarking on their BRSR journey, the following step-by-step approach will help ensure a smooth reporting process:

  1. Identify Key Contributors – Assign responsibility for different KPIs (HR for wages, Operations for energy data, etc.).
  2. Collect and Validate Data – Gather data across different departments and ensure it is accurate and complete.
  3. Perform Level 1 Validation – Check for unit consistency, completeness, and managerial sign-off.
  4. Prepare the BRSR Report – Organize data in SEBI’s prescribed format.
  5. Conduct Assurance (if required) – Engage with third-party assurance providers, especially for BRSR Core KPIs.
  6. Submit & Publish the Report – Share with SEBI through official channels and publish it on the company’s website.

Final Thoughts

BRSR reporting is a significant step towards ensuring transparency and accountability in corporate sustainability practices. As regulations evolve, businesses—whether large or small—must align with these frameworks to remain competitive and compliant.

For organizations looking to streamline the BRSR process, platforms like Sustainium offer automated tools for data collection, validation, and report generation. Get started today and lead the way in corporate sustainability!