PwC India released a report titled 'Navigating India's Transition to Sustainability'.

Posted 25 Apr 2024

Updated 30 Apr 2024

2 min read

The report analyses how companies are adapting to the Business Responsibility and Sustainability Reporting (BRSR) disclosures mandated by the Securities and Exchange Board of India (SEBI).
The BRSR framework is a mandatory disclosure mechanism (from FY 2022–23) for the top 1000 listed companies or businesses to report their performance on environmental, social and governance (ESG) aspects.
- SEBI’s guidance document provides details on three kinds of disclosures—general, management and process, and “principle wise” (principle-based).
BRSR is aimed at improving compliance, consistency and communication around non-financial disclosures.
SEBI also introduced BRSR Core in 2023 to enhance the reliability of ESG disclosures.
- BRSR Core represents a subset of the comprehensive BRSR and includes a specific set of key performance indicators (KPIs) / metrics across ESG attributes.

Significance:
- Transparency: BRSR enables investors, stakeholders, and the public to assess a company’s sustainability efforts related to ESG aspects.
- Strong brand positioning: Embracing sustainability as a key pillar of operating practices increases the brand value of a company
- Increase value creation: Companies integrating sustainability outperform peers, ensuring a competitive edge, and higher enterprise value compared to those resistant to change.

51 out of 100 companies (Nifty 50 companies and NEXT 50 listed companies) analysed disclosed their Scope 3 data for FY23 despite it being a voluntary disclosure in the BRSR
- Scope 1 (direct emissions) and Scope 2 (indirect emissions from purchased electricity, heat, or steam)
- Scope 3 emissions (indirect GHG emissions that occur outside of the organization)
34% of the companies have reduced their Scope 1 emissions and 29% have reduced their Scope 2 emissions
49% of companies have increased their energy consumption from renewable sources

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