With SEBI’s phased rollout of mandatory ESG disclosures through the Business Responsibility and Sustainability Reporting (BRSR) Core framework, companies are being asked to do more than just talk about sustainability—they are being asked to prove it

Byline:  P. GopalaKrishnan, Managing Director – Southeast Asia and Middle East, GBCI

India is witnessing a fundamental shift in how businesses engage with sustainability. What was once a voluntary exercise in corporate social responsibility is now being structured into a regulated and measurable framework. With SEBI’s phased rollout of mandatory ESG disclosures through the Business Responsibility and Sustainability Reporting (BRSR) Core framework, companies are being asked to do more than just talk about sustainability—they are being asked to prove it.

This marks a turning point for India Inc., where ESG performance is no longer an external add-on but a core business concern. Yet, the transition raises an important question: how prepared are Indian businesses to meet the expectations of full, assured ESG disclosure?

The Evolution of ESG From Intention To Action
Globally, ESG has moved from the margins to the mainstream. Investor expectations are rising, supply chains are becoming more climate-conscious, and regulatory oversight is increasing. SEBI’s decision to gradually extend BRSR Core to the top 1,000 listed companies by FY27 reflects this momentum and signals that ESG compliance is no longer optional.

What sets this new framework apart is its emphasis on third-party assurance and standardised key performance indicators. It introduces consistency and credibility to disclosures, helping stakeholders make informed decisions. It also increases the pressure on companies to not only measure and report their ESG performance, but to demonstrate genuine progress.

Some Companies Are Setting The Pace
Several of India’s leading businesses have already taken meaningful steps toward measurable sustainability goals. Companies such as TCS, Infosys, Reliance Industries and Hindustan Unilever have integrated renewable energy, efficient operations and low-carbon innovations into their core strategies.
The numbers speak for themselves. Infosys now sources over 67 per cent of its domestic energy needs from renewables, while Reliance reported a 115 per cent year-on-year increase in renewable energy use. These initiatives are no longer confined to isolated CSR projects. They are embedded within long-term business planning.
However, while momentum is building at the top, broader readiness across sectors and supply chains remains inconsistent. Smaller firms, especially those not yet mandated to disclose under BRSR, may face capacity and data challenges when their turn comes.

The Next Challenge: Moving Beyond Operational Emissions
For many companies, ESG reporting begins and ends with Scope 1 and 2 emissions, those generated by company-owned operations or purchased energy. These are relatively easier to quantify. But the next frontier, and a far more complex one, is Scope 3: emissions that occur across a company’s entire value chain, including those embedded in materials, infrastructure and logistics.
This is where carbon accounting needs to evolve. Addressing embodied emissions, especially in sectors like construction, manufacturing and transportation, will be critical to achieving net zero goals. It also requires new tools, better data, and a more integrated understanding of business processes across the lifecycle.

Verification Is Key To Credibility
As ESG claims increase, so will the scrutiny around them. To maintain trust, companies need credible, verifiable metrics. Frameworks like LEED Zero Carbon, developed by GBCI, offer third-party assurance that emissions reductions are real, measurable and independently validated. They bring scientific rigour to claims of carbon neutrality, helping organisations demonstrate progress in a way that goes beyond internal estimates.
Verification also helps address the risk of greenwashing, which has become a growing concern as companies face increasing pressure to present themselves as sustainable. Transparent, third-party reviewed disclosures build investor confidence and ensure accountability.

Closing The Readiness Gap
Even as leading companies set ambitious net zero targets, the overall readiness across India Inc. remains uneven. According to PwC India’s report, 34 per cent of the top 100 listed companies disclosed a reduction in Scope 1 emissions, while 29 per cent reported a drop in Scope 2 emissions. However, only 12 per cent were able to demonstrate reductions in both categories. Furthermore, while 31 per cent of companies have disclosed net zero targets, the remaining majority are still at varying stages of integrating ESG considerations into their broader business strategy. Encouragingly, 51 per cent of these companies voluntarily disclosed their Scope 3 emissions—a significant step, given the complexity involved and the fact that it remains a non-mandatory disclosure under the current BRSR framework.
For India Inc. to succeed collectively, there needs to be a stronger support ecosystem. This includes training for ESG reporting teams, accessible tools for small and mid-sized enterprises, and sector-specific guidance to avoid a one-size-fits-all approach. Public policy initiatives like the Energy Conservation Building Code and the recently introduced Energy Conservation and Sustainability Building Code are creating important frameworks to support this evolution.

What comes next for Indian businesses
Full ESG disclosure is not just about meeting regulatory requirements. It is fast becoming a business differentiator. Companies that can demonstrate sustainability through verified data are better positioned to access global capital, retain stakeholder trust, and manage long-term risk. They are also more likely to align with international standards as regulations evolve globally.
The future will demand a deeper level of transparency, especially in measuring emissions, energy use, resource efficiency and social impact. Integrating these practices into everyday decision making, rather than treating them as one-off reporting obligations, will define true ESG leadership.
India Inc. is moving in the right direction. While the pace may vary across sectors, the direction is clear: toward greater accountability, stronger metrics, and more transparent climate action. Building consistency, capability and confidence in ESG disclosures will be critical in sustaining this momentum and ensuring that India’s net zero aspirations are not just targets on paper, but real outcomes delivered across industries.