ESG Services Overview — Environmental, Social & Governance | Nainit Savla & Associates

ESG Services Overview

Q: What is BRSR and which companies are required to file it?

BRSR is SEBI's ESG disclosure framework mandatory for the top 1,000 listed companies from FY 2022-23. BRSR Core with third-party assurance applies from FY 2023-24 for top 150, expanding to top 250 and 500 in subsequent years.

Q: Do unlisted companies need to comply with ESG requirements in India?

No mandatory BRSR equivalent for unlisted companies, but significant ESG pressures exist from listed company value chain requirements, international buyers, bank ESG credit criteria, and the EU Carbon Border Adjustment Mechanism for exporters.

Q: What is the difference between ESG reporting and CSR?

CSR (Section 135 Companies Act) mandates 2% net profit spending on Schedule VII activities — a charitable spending requirement. ESG reporting is comprehensive disclosure of environmental practices, social relationships, and governance across all operations. CSR spending is one small data point within the broader ESG framework.

Q: What is Scope 1, Scope 2, and Scope 3 emissions?

Scope 1: direct emissions from owned sources. Scope 2: indirect emissions from purchased energy. Scope 3: all other value chain emissions (upstream and downstream) — typically 70%+ of total footprint. BRSR Core requires Scope 1 and 2 with third-party assurance.

Q: Which ESG framework is most appropriate for an Indian company?

Listed companies must follow SEBI BRSR. Global investors typically expect GRI Standards. Climate-sensitive sectors use TCFD. International supply chains may need CDP or SASB. Many companies combine BRSR with one global framework. We advise on optimal framework selection.

Environmental, Social, and Governance (ESG) considerations have moved from the margins of corporate strategy to its centre — driven by regulatory mandates, investor expectations, lender requirements, and a global shift in how businesses are evaluated beyond pure financial metrics. In India, SEBI's Business Responsibility and Sustainability Report (BRSR) framework has made ESG reporting mandatory for the top listed companies — with the scope expanding progressively. We provide a comprehensive suite of ESG services covering accounting, audit, framework advisory, regulatory compliance, assurance, and professional support to help businesses measure, manage, and communicate their ESG performance credibly.

ESG Accounting

Identification, measurement, and recording of environmental and social costs — carbon accounting, energy consumption tracking, water usage, waste quantification, and social expenditure accounting aligned to sustainability reporting requirements.

ESG Audit

Independent audit and assurance of ESG data and disclosures — verifying the accuracy, completeness, and consistency of sustainability metrics reported by companies in their BRSR, GRI, or TCFD reports.

ESG Reporting Frameworks

Advisory on global and Indian ESG reporting frameworks — BRSR, GRI Standards, TCFD, SASB, CDP, and UN SDGs — helping companies select the right framework and structure disclosures to meet stakeholder expectations.

Regulatory Landscape

Comprehensive advisory on India's ESG regulatory requirements — SEBI BRSR mandates, Companies Act CSR provisions, environmental compliance laws, and emerging international ESG regulations affecting Indian exporters and multinationals.

ESG Assurance & Certification

Third-party assurance engagements over ESG disclosures — limited and reasonable assurance on sustainability reports, carbon footprint verification, and ESG rating preparation support for companies seeking credible external validation.

Role of Professionals

Advisory on how Chartered Accountants, Company Secretaries, and other professionals contribute to the ESG ecosystem — as sustainability reporters, assurance providers, advisors, and governance officers within corporate structures.

Why ESG Matters for Indian Businesses Now

SEBI made BRSR reporting mandatory for the top 1,000 listed companies by market capitalisation from FY 2022-23, with BRSR Core — a more rigorous set of key performance indicators requiring third-party assurance — mandatory from FY 2023-24 for the top 150 companies, expanding annually. Beyond regulation, global supply chain requirements, international lender ESG covenants, institutional investor voting policies, and the EU's Carbon Border Adjustment Mechanism (CBAM) are all creating ESG compliance imperatives for Indian businesses regardless of their listing status.

ESG is no longer a voluntary, reputational exercise — it is increasingly a hard commercial and regulatory requirement that affects access to capital, export markets, and global business relationships.

ESG — The Three Pillars

Environmental — climate change, greenhouse gas emissions, energy consumption, water usage, waste management, biodiversity, and circular economy practices
Social — employee health and safety, diversity and inclusion, human rights, supply chain labour standards, community development, and data privacy
Governance — board composition and diversity, executive remuneration, anti-corruption, business ethics, whistleblower policies, and shareholder rights

Frequently Asked Questions

What is BRSR and which companies are required to file it?

BRSR (Business Responsibility and Sustainability Report) is the ESG disclosure framework prescribed by SEBI for listed companies in India — replacing the earlier Business Responsibility Report (BRR). It requires companies to disclose across nine principles of the National Guidelines on Responsible Business Conduct (NGRBC). BRSR filing is mandatory for the top 1,000 listed companies by market capitalisation from FY 2022-23. BRSR Core — a subset of key performance indicators with mandatory third-party assurance — applies from FY 2023-24 for the top 150 companies, expanding to the top 250 in FY 2024-25 and top 500 in FY 2025-26. Listed companies outside the top 1,000 may voluntarily file BRSR.

Do unlisted companies need to comply with ESG requirements in India?

Unlisted companies in India do not currently have mandatory ESG reporting requirements equivalent to SEBI's BRSR. However, they face ESG pressures from multiple directions: (a) large listed companies are increasingly required to report on their value chain's ESG performance — which means their unlisted suppliers must provide ESG data; (b) international buyers, particularly from the EU and USA, are imposing supplier ESG requirements as part of their own ESG compliance; (c) banks and NBFCs providing project finance are incorporating ESG criteria in credit assessment; and (d) the EU's CBAM (Carbon Border Adjustment Mechanism) directly affects Indian exporters of steel, cement, aluminium, fertilisers, and electricity. Unlisted companies in these sectors face material commercial ESG obligations.

What is the difference between ESG reporting and CSR?

Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013 is a mandatory spending requirement — companies meeting prescribed thresholds must spend 2% of average net profit on CSR activities from the Schedule VII list. CSR is primarily about charitable spending. ESG reporting is a comprehensive disclosure of how a company manages its environmental impact, social relationships, and governance structure across its entire business — it goes far beyond CSR spending to cover operational practices, supply chain management, board governance, and climate risk. CSR spending is one data point within the broader ESG framework but represents a small subset of what ESG encompasses.

What is Scope 1, Scope 2, and Scope 3 emissions — and why do they matter for ESG?

The GHG Protocol categorises greenhouse gas emissions into three scopes: Scope 1 covers direct emissions from sources owned or controlled by the company (e.g., fuel combustion in company vehicles or furnaces). Scope 2 covers indirect emissions from purchased energy — electricity, steam, heat, and cooling consumed by the company. Scope 3 covers all other indirect emissions in the company's value chain — both upstream (from suppliers) and downstream (from customers' use of products). Scope 3 typically represents the largest share of a company's total carbon footprint (often 70% or more). BRSR Core requires disclosure of Scope 1 and 2 emissions with third-party assurance; Scope 3 disclosure is increasingly expected by investors and global frameworks.

Which ESG framework is most appropriate for an Indian company?

The choice of ESG framework depends on the company's regulatory obligations, industry, and stakeholder base. Listed Indian companies must comply with SEBI's BRSR as their primary regulatory requirement. For companies with global investors or international operations, GRI Standards are the most widely adopted global framework. Companies in climate-sensitive sectors (energy, finance, real estate) may use TCFD for climate-specific disclosures. Companies disclosing to international supply chains or procurement processes may use CDP (Climate Disclosure Project) or SASB standards. Many companies produce an integrated report covering BRSR obligations alongside one or more global frameworks. We advise on the optimal framework selection based on your company's specific stakeholder and regulatory profile.

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