An Exploratory Study of Business Responsibility and Sustainability Report (BRSR) in India -A transition with inclusion for more sustainable future

Abstract

Climate change and the consequent need for sustainable development have been the hotly debated issues worldwide for decades. In the wake of this, the concept of environmental, social, and governance (ESG) has gained a lot of prominence in the business environment amongst the business enterprises to incorporate and follow the principles of sustainable development. To strengthen corporate accountability and transparency and to align with global sustainability standards, SEBI mandated Business Responsibility and Sustainability Reporting (BRSR) for India's top 1000 listed companies from FY2022-23, replacing Business Responsibility Report (BRR). Companies are presenting more quantified, detailed information, making reports more trustworthy and relevant. Corporate governance in India has to go beyond compliance to achieve ethical and inclusive business growth. A business enterprise must fulfil its non-financial reporting. This includes informing its stakeholders, investors, and employees about how its operations affect ESG issues. This conceptual paper presents a framework for explaining Corporate Sustainability Reporting practices by companies. This paper aims to investigate how India is converting ESG to BRR and BRR to BRSR. The study will analyse the alignment of corporate disclosures with SEBI's BRSR framework and assess their effectiveness in fostering sustainability reporting. It will also evaluate the challenges companies face in implementing the prescribed ESG practices under BRSR. In India, the transition from voluntary disclosures to mandatory Environmental, Social, and Governance (ESG) reporting under the Securities and Exchange Board of India’s (SEBI) Business Responsibility and Sustainability Reporting (BRSR) framework marks a significant regulatory and institutional milestone.