Mandatory ESG Disclosure in India: A Review of the Business Responsibility and Sustainability Reporting Framework and a Research Agenda

Abstract

Environmental, social and governance (ESG) disclosure in India has moved from voluntary reporting to a mandatory, assured regime. Since 2022-23, the top 1,000 listed companies by market capitalisation have been required to file a Business Responsibility and Sustainability Report (BRSR), and since 2023-24 a subset of key indicators, known as BRSR Core, has been subject to independent assurance under a phased glide path. This paper reviews the theoretical foundations, empirical evidence and practitioner assessments relevant to this framework. Using a structured narrative review of peer-reviewed studies, regulatory circulars of the Securities and Exchange Board of India (SEBI) and recent reporting surveys, the paper examines four questions: why firms disclose, what mandatory disclosure achieves, how the BRSR regime has evolved, and what early reporting practice reveals. The review finds that international evidence links mandatory ESG disclosure to improved stock liquidity and information environments, while Indian evidence on the 2013 CSR spending mandate shows that compelled sustainability actions can carry costs for shareholders. Early BRSR practice shows near-universal reporting of energy use and emissions among large firms and widespread reasonable assurance of BRSR Core, but persistent gaps in data quality, value chain coverage, workforce diversity and comparability. Regulatory changes in 2024-25 eased value chain requirements and allowed assessment as an alternative to assurance. The paper proposes a research agenda on the capital market effects of BRSR, assurance quality, value chain disclosure, greenwashing and the reporting readiness of smaller listed firms.