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BRSR: Business Responsibility & Sustainability Reporting

What it is, who needs it, and how to comply

What is BRSR?

BRSR is India's mandatory framework for Environmental, Social, and Governance (ESG) disclosures. Think of it as an annual report card where companies disclose how much they pollute, how they treat employees and communities, and how transparently they're governed.

Introduced by
SEBI (Securities and Exchange Board of India)
Applies to
Top 1,000 listed companies by market cap
Mandatory since
Financial Year 2022–23
Filed with
Annual financial reports

Who Must File BRSR?

Currently Mandatory

Top 1,000 listed companies on BSE/NSE (by market cap as of March 31 each year) — includes all Nifty 500 companies, many mid-caps, and select small-cap leaders.

Voluntary (for now)

Companies ranked 1,001–10,000. Unlisted companies (but some voluntarily adopt BRSR to attract ESG-focused funding).

Future Expansion Expected

Top 10,000 listed companies, large unlisted companies (revenue >₹500 crore), Public Sector Units.

What Companies Must Report (Environmental Focus)

Under Principle 6 (Environment) — where carbon emissions are reported — companies disclose:

Energy & Emissions
  • Total electricity consumption (kWh)
  • Renewable energy percentage
  • Scope 1 emissions (tonnes CO₂e) — mandatory
  • Scope 2 emissions (tonnes CO₂e) — mandatory
  • Scope 3 emissions — voluntary but encouraged
  • Emission intensity (tCO₂ per unit of revenue or production)
Water, Waste & Biodiversity
  • Total water withdrawal, consumption, discharge, recycling %
  • Hazardous and non-hazardous waste generated, recycled %
  • Operations in or near ecologically sensitive areas

How Emissions Are Calculated

Step 1: Identify Emission Sources
Scope 1: factory fuel, vehicles, generators, industrial processes. Scope 2: grid electricity (use CEA state-specific emission factors). Scope 3: supply chain, business travel, employee commuting.
Step 2: Apply Emission Factors
Coal combustion: 2.42 tCO₂/tonne coal  ·  Diesel: 2.68 tCO₂/tonne  ·  Grid electricity (Maharashtra): 0.71 tCO₂/MWh
Step 3: Calculate Total & Intensity
Activity Data × Emission Factor = Emissions
Example: 1,000 tonnes coal × 2.42 = 2,420 tCO₂
Intensity: 5,000 tCO₂ ÷ ₹100 Cr revenue = 50 tCO₂/Cr

BRSR vs CCTS: What's the Difference?

Aspect BRSR CCTS
Purpose Disclosure (transparency) Compliance (targets)
Enforcer SEBI Bureau of Energy Efficiency
Who Top 1,000 listed companies 490 industrial entities (9 sectors)
Scope All emissions + water, waste, social Only carbon emissions
Penalty Regulatory action 2× carbon credit price
Reward Investor confidence Carbon credit revenue
Verification Not mandatory (yet) Mandatory (accredited agencies)
Key Difference: BRSR is about REPORTING ("here's what we emit"). CCTS is about TRADING ("we must meet targets or pay").

Real Example: Infosys BRSR (FY 2022–23)

Emissions
Scope 1: 9,411 tCO₂e (generators, vehicles)
Scope 2: 357,889 tCO₂e (electricity)
Scope 3: 195,000 tCO₂e (commute, travel)
Total: 562,300 tCO₂e
Performance
Intensity: 19.2 tCO₂e/Cr revenue (↓ from 22.1)
Renewable energy: 49.6%
Water recycled: 73%
Waste recycled: 92%

Cost of BRSR Compliance

DIY Approach
  • Staff time: 40–80 hours
  • Software tools: ₹50K–2L/year
  • Total: ₹2–5 lakh
Consultant-Led
  • Consulting fees: ₹5–15 lakh
  • Verification: ₹2–10 lakh
  • Total: ₹7–25 lakh

For perspective: This is <0.1% of revenue for most top-1,000 companies.

How to Prepare for BRSR (7 Steps)

1
Assign Ownership
Create cross-functional team: Finance, Operations, HR, CSR, Legal
2
Understand Scope
Review SEBI's BRSR format carefully. Identify which sections apply.
3
Set Up Data Systems
Centralize electricity bills, fuel records, travel data. Choose emission factor database.
4
Calculate Baseline
First year is hardest. Use FY 2022–23 or 2023–24. Subsequent years easier.
5
Get Internal Review
CFO/Board reviews before filing. Consider voluntary external assurance.
6
File with Annual Report
BRSR is part of annual report. Publish on company website and stock exchange portals.
7
Respond to Stakeholders
Be prepared to explain methodology to investors and rating agencies.
Next: Learn about CCTS
India's carbon credit trading scheme — targets, trading, penalties
CCTS Explained →