In collaboration with CFA Society India and the National Stock Exchange of India (NSE), CFA Institute released the inaugural Business Responsibility and Sustainability Reporting (BRSR) data assessment. This report provides critical insights into India’s evolving ESG landscape, highlighting recent sustainability practices among listed companies.

The BRSR framework, introduced by SEBI in 2021 and updated in 2023, mandates ESG disclosure for the top 1,000 companies. To assess the current state of sustainability reporting, CFA Institute, NSE, and CFA Society India analyzed BRSR reports from 300 of these companies for FY23 and the prior year. Key findings include:

Sustainability

• Over 75% of companies report sustainable sourcing practices, with 230 of 300 companies establishing procedures.
• More than half of companies lack reporting on R&D investments for environmental or social impacts, though those that do increased from 141 in FY22 to 148 in FY23.
• 40% of companies still don’t report capital expenditure on technologies to reduce environmental and social impacts, yet reporting increased from 169 to 180 companies in FY23.

Environmental Protection and Restoration

• Over 96% of companies reported energy consumption in FY23, with energy intensity decreasing by 13% compared to FY22.
• 94% reported scope 1 and 2 emissions data, reflecting a 14% reduction in CO2e emissions per revenue unit.
• Less than 40% reported Scope 3 emissions, though this increased from 93 companies in FY22 to 110 in FY23, with a 25% decrease in emissions intensity.

Workforce Disclosures

• Employee turnover rose from around 16% in FY21 to 22% in FY23, while worker turnover remained steady at 8-9%.
• Less than 0.5% of employees are differently abled, compared to 2.2% in the general population.

Arati Porwal, Country Head of CFA Institute, stated, “This research offers a vital benchmark for companies to evaluate their progress on ESG benchmarks and pinpoint areas for improvement.”

Dr. Tirthankar Patnaik, Chief Economist at NSE, commented, “This report provides valuable insights to help companies adopt ESG reporting that aligns with global standards.”

Rajesh Sehgal, Chairperson of CFA Society India, added, “The findings from the BRSR data offer a valuable reflection of how Indian companies are addressing sustainability and responsibility. It is vital for Indian companies to not only meet compliance but also lead by example in creating a more inclusive and sustainable corporate landscape.”