Business Responsibility and Sustainability Reporting (BRSR) is an essential framework introduced by the Securities and Exchange Board of India (SEBI) to guide listed companies in disclosing their Environmental, Social, and Governance (ESG) performance. Launched in 2021, BRSR aims to enhance transparency, accountability, and long-term value creation by requiring companies to provide detailed and standardized reports on how they manage sustainability risks and contribute to societal well-being.

As businesses across the world face increasing pressure from stakeholders—ranging from investors to customers—on the need for responsible business practices, BRSR provides a clear, structured way for companies to demonstrate their commitment to sustainable growth and ethical governance.

Why BRSR Reporting Matters?

BRSR aligns Indian businesses with global ESG standards and sets the stage for more responsible corporate behavior. By adopting BRSR, companies not only comply with regulatory requirements but also position themselves as forward-thinking organizations focused on long-term sustainability. Here’s why BRSR matters:

• Investor Confidence: Increasingly, investors are looking for companies that actively manage ESG risks. BRSR helps attract ESG-focused investment by demonstrating a company’s transparency and commitment to sustainable practices.
• Improved Governance: The framework promotes better corporate governance by requiring clear disclosures on board composition, ethics, risk management, and sustainability strategies.
• Environmental Responsibility: BRSR reporting encourages companies to take meaningful action on climate change, resource efficiency, and biodiversity conservation. It also helps businesses track their environmental footprint and identify areas for improvement.
• Social Impact: A strong social responsibility profile can enhance employee engagement, brand reputation, and customer loyalty. The BRSR framework ensures companies measure and report on their social performance, including diversity, equity, and community engagement.

Key Features of BRSR Reporting

1. Comprehensive ESG Disclosures
   BRSR requires detailed, quantitative data across Environmental, Social, and Governance areas, giving stakeholders a clear understanding of a company’s ESG performance. Companies must disclose metrics on carbon emissions, water usage, waste management, employee diversity, and more.
2. Sector-Specific Guidelines
   Certain sectors, such as financial services, may have additional reporting requirements based on their unique risks and impacts. This tailored approach ensures that each industry can present relevant and meaningful ESG data.
3. Independent Assurance
   BRSR includes a requirement for third-party verification of the reported data. This independent assurance boosts the credibility of the disclosures and ensures the integrity of the information shared with investors, regulators, and the public.
4. Global Alignment
   The BRSR framework is aligned with internationally recognized standards like the Global Reporting Initiative (GRI), United Nations Sustainable Development Goals (SDGs), and the Task Force on Climate-related Financial Disclosures (TCFD), allowing companies to meet both local and global sustainability expectations.
5. Mandatory Reporting for Top 1,000 Companies
   From the financial year 2022-23, BRSR reporting became mandatory for the top 1,000 listed companies in India by market capitalization, making it a significant step toward standardizing ESG disclosure practices across the Indian corporate sector.

What’s Included in a BRSR Report?

 BRSR reports are structured into several key sections, which provide a comprehensive overview of a company’s sustainability and responsibility efforts:

• General Information: Basic company information, including business operations and financial performance.
• Governance: Insights into the board’s composition, ethics policies, risk management frameworks, and sustainability oversight.
• Environmental Responsibility: Data on energy consumption, carbon emissions, waste management, water usage, and sustainability initiatives.
• Social Responsibility: Reporting on employee welfare, diversity and inclusion, health and safety practices, and community outreach efforts.
• Sustainability Performance: A deep dive into the company’s long-term sustainability strategy, climate risk disclosures, and goals for reducing its ESG impact.
• Assurance Statement: Independent third-party assurance verifying the accuracy and reliability of the reported information.

Benefits of BRSR Reporting for Companies

1. Enhanced Corporate Reputation
   By committing to transparency in ESG reporting, companies can enhance their brand reputation and appeal to socially conscious consumers and investors.
2. Stronger Stakeholder Relationships
   Transparent ESG reporting fosters trust and strengthens relationships with customers, employees, investors, regulators, and the communities where a company operates.
3. Compliance with Regulatory Standards
   With mandatory BRSR reporting for top-listed companies, businesses ensure compliance with SEBI regulations, positioning themselves as leaders in responsible corporate behavior.
4. Access to Sustainable Investment
   Investors increasingly seek companies with robust ESG practices. BRSR reporting makes it easier for businesses to attract capital from ESG-focused investment funds.
5. Proactive Risk Management
   BRSR helps companies identify ESG risks early and take corrective action, ultimately improving their resilience and competitiveness in a rapidly changing global market.

How We Can Help with BRSR Reporting

At Environment, Health & Safety Services, we specialize in guiding businesses through the process of BRSR reporting. Our team of experts can assist you in:

• Understanding the BRSR framework and its requirements.
• Gathering and analyzing the necessary ESG data.
• Preparing and drafting a comprehensive, compliant BRSR report.
• Providing independent third-party verification and assurance services.
• Ensuring that your report is aligned with global best practices.

Whether you’re just starting with BRSR reporting or looking to enhance your existing processes, we provide end-to-end support to ensure your company meets regulatory requirements while showcasing your commitment to sustainability and good governance.