BRSR 2025: India’s Sustainability Reporting Steps Into a New Era

In the world of corporate sustainability, regulations are often seen as something companies “have to” comply with. But every now and then, a framework evolves in a way that makes you think, this is actually pushing us in the right direction. That’s exactly what’s happening right now with India’s Business Responsibility and Sustainability Reporting (BRSR) framework.

Introduced by SEBI in 2021, BRSR replaced the earlier Business Responsibility Report and was designed to give investors, regulators, and the public a clearer picture of how companies are performing on environmental, social, and governance (ESG) fronts. Over the past few years, it has steadily grown in scope and depth — and in March 2025, SEBI announced a set of updates that are going to shape the way businesses think about sustainability for years to come.

These changes are more than just technical tweaks. They’re a reflection of India’s evolving ESG priorities: moving from lofty promises to measurable action, from compliance paperwork to real-world impact.

Green Credits: Turning Environmental Action into a Currency of Change

The headline update is the introduction of Green Credit disclosures into BRSR. This isn’t just another checkbox. It’s a signal that sustainability reporting in India is shifting from talking about intent to proving impact.

From this financial year onward, companies will need to report the number of green credits they have generated or procured — and not just from their own operations, but also from their top ten value‑chain partners.

Green credits are awarded for actions that have tangible environmental benefits, such as:

• Planting trees and restoring degraded land

• Conserving water resources or reviving water bodies

• Protecting and enhancing biodiversity

  
  

This is a significant move. It means that when a company claims to be “green,” it must now be able to show actual, measurable results — results that can be compared year on year, and that extend into its supply chain. It also opens the door for companies to collaborate with their suppliers and partners on shared environmental projects, making sustainability a team sport rather than a solo effort.

Value‑Chain Reporting: A More Realistic Approach

If you’ve ever tried to collect ESG data from dozens (or hundreds) of suppliers, you’ll know it’s a challenge that makes herding cats look easy. SEBI clearly understands this, because the 2025 update introduces a much more practical value‑chain reporting requirement.

Previously, companies were expected to report ESG metrics for suppliers and customers that made up 75% of their value chain. That’s a tall order — especially for large corporations with complex networks. Now, the rule has been eased: companies only need to report on partners that contribute at least 2% individually to their purchases or sales.

Even better, this narrower requirement will be voluntary in FY 2025‑26 and will only become mandatory from FY 2026‑27. This gives companies breathing room to:

• Build internal systems for supplier ESG data collection

• Train procurement teams to ask the right questions

• Support suppliers in improving their own sustainability tracking

  
  

It’s a smart move. By phasing it in, SEBI is giving companies time to do it well — rather than rushing into compliance and ending up with patchy, unreliable data.

Assurance or Assessment: Flexibility in How You Prove Your Numbers

One of the criticisms of earlier BRSR rules was that they required third‑party limited assurance for certain disclosures. While this raised credibility, it also raised costs and complexity, especially for companies new to ESG reporting.

The new approach gives companies a choice:

• Go for formal third‑party assurance — the gold standard for credibility.

• Or choose a lighter assessment, which can be internal or external but doesn’t require a formal audit process.

  
  

This might sound like a small change, but it’s a big deal. It recognises that ESG maturity varies widely between companies. For some, full assurance makes sense right now. For others, starting with an assessment is a realistic stepping stone. Either way, the aim is the same: ensure that BRSR numbers mean something and can be trusted.

Phased Rollout: Bringing Everyone on Board, One Step at a Time

The expansion of BRSR Core is continuing on a staggered schedule:

• FY 2023‑24 → Top 150 listed companies

• FY 2024‑25 → Top 250 companies

• FY 2025‑26 → Top 500 companies

• FY 2026‑27 → Top 1,000 companies

  
  

This slow and steady approach ensures that companies aren’t blindsided. It gives them time to learn from early adopters, refine their processes, and invest in ESG systems before the requirements apply to them.

Why This Matters Beyond Compliance

These updates may soun procedural, but their impact runs deeper. They encourage companies to:

• Shift from ESG as a PR exercise to ESG as a measurable performance discipline.

• Engage their value chain in the sustainability journey, rather than focusing only on internal operations.

• Adopt credible verification practices suited to their stage of ESG maturity.

• Use BRSR not just as a regulatory burden, but as a strategic advantage.

  
  

And perhaps most importantly, they align India’s sustainability reporting more closely with global best practices, without losing sight of our own unique industrial realities.

The Opportunity for Indian Businesses

For forward‑thinking companies, this is more than just a set of new rules to follow. It’s a chance to stand out. Imagine being able to tell investors, customers, and employees:

• Here’s the exact environmental impact we made last year.

• Here’s how our suppliers are also making progress.

• Here’s how we’re improving, year on year.

  
  

That’s powerful. It builds trust. It attracts investment. And in a world where sustainability credentials increasingly influence buying decisions, it can open new markets and partnerships.

Of course, it’s not without it's challenges. Measuring green credits, collecting supplier data, and ensuring credible verification will take time, money, and persistence. But the companies that start now — that treat BRSR as a growth tool rather than a tick‑box task — will be the ones that thrive in the new ESG landscape.

In short: The 2025 updates to BRSR are a call to action. They nudge Indian companies towards a future where sustainability isn’t just a section in an annual report — it’s a core part of how businesses operate, measure success, and create value for the world around them.