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Corporate Financial Reporting · Recent Developments in Financial Reporting

Business Responsibility and Sustainability Reporting (BRSR) Explained

Updated 11 October 2026 · Fact-checked

BRSR is SEBI's mandatory sustainability disclosure format for top listed companies in India. It replaced the Business Responsibility Report. It has three sections: general disclosures, management and process disclosures, and principle-wise performance disclosures, built on the nine NGRBC principles. BRSR Core is a smaller set of key indicators that need assurance.

Understand Business Responsibility and Sustainability Reporting (BRSR)

Listed companies affect people, communities and the environment, not only shareholders. Investors want comparable data on this. BRSR is SEBI's standard format for reporting it. It is part of the annual report of the listed entity, under the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations.

Before BRSR, the top listed companies filed a Business Responsibility Report (BRR). The BRR was largely descriptive and followed the nine principles of the 2011 National Voluntary Guidelines. BRSR replaced it, starting with the top 1,000 listed companies by market capitalisation (voluntary in FY 2021-22, mandatory from FY 2022-23). BRSR asks for quantitative, measurable data and links the report to the National Guidelines on Responsible Business Conduct (NGRBC) issued by the Ministry of Corporate Affairs in 2019.

BRSR has three sections:

  • Section A, General disclosures: company details, products and services, operations, employees and workers, holding/subsidiary/associate companies, CSR details, transparency and complaints.
  • Section B, Management and process disclosures: policies, governance and oversight, and how the company puts each NGRBC principle into practice.
  • Section C, Principle-wise performance disclosures: each principle has Essential Indicators (must report) and Leadership Indicators (voluntary).

The nine NGRBC principles are:

  • P1: Businesses should conduct and govern themselves with integrity, and in a manner that is ethical, transparent and accountable.
  • P2: Businesses should provide goods and services in a manner that is sustainable and safe.
  • P3: Businesses should respect and promote the well-being of all employees, including those in their value chains.
  • P4: Businesses should respect the interests of and be responsive to all their stakeholders.
  • P5: Businesses should respect and promote human rights.
  • P6: Businesses should respect and make efforts to protect and restore the environment.
  • P7: Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent.
  • P8: Businesses should promote inclusive growth and equitable development.
  • P9: Businesses should engage with and provide value to their consumers in a responsible manner.

BRSR Core is a sub-set of BRSR with key performance indicators (KPIs) under selected attributes, such as greenhouse gas footprint, water and energy footprint, waste management, employee wellbeing and safety, gender diversity, inclusive development, fairness in dealing with value chain partners and business conduct. These need reasonable assurance from an independent assurer. SEBI phased it in from FY 2023-24 for the top 150 listed entities, extending in stages to the top 250, 500 and 1,000. It also introduced value chain disclosures and assurance for the top listed entities in phases. Check the latest SEBI circulars for exact thresholds and dates, as these are revised.

Key rules to remember

BRSR structure
BRSR = Section A (General) + Section B (Management and Process) + Section C (Principle-wise Performance)
Section C has Essential (mandatory) and Leadership (voluntary) indicators for each principle.
Number of principles
NGRBC = 9 principles (P1 to P9)
P1 ethics, P2 sustainable goods, P3 employee well-being, P4 stakeholders, P5 human rights, P6 environment, P7 public policy, P8 inclusive growth, P9 consumers.
Reporting basis
BRR (narrative, 2011 guidelines) → BRSR (quantitative, NGRBC 2019)
BRSR replaced BRR and is mandatory for the top 1,000 listed companies by market capitalisation, from FY 2022-23.
BRSR Core
BRSR Core = selected KPIs + reasonable assurance
Assurance applies in phases starting with the top 150 listed entities from FY 2023-24. Verify latest SEBI circulars.

How to solve Business Responsibility and Sustainability Reporting (BRSR) questions

Use this method for any BRSR question, whether theory, case-based or MCQ.

  1. 1Identify what is asked: format, section, principle, BRSR Core, or comparison with BRR.
  2. 2If the question is about a section, recall the A, B, C structure and place the item in the right section.
  3. 3If a scenario describes an activity (e.g. water use, grievance handling, supplier practices), map it to the NGRBC principle it belongs to.
  4. 4Check whether the indicator is Essential or Leadership. Essential is mandatory; Leadership is voluntary.
  5. 5Check whether the item is part of BRSR Core and so needs assurance.
  6. 6For comparison questions, use fixed heads: basis, nature of data, scope, assurance, linkage to guidelines.
  7. 7State your conclusion clearly and tie it to the company's facts.

Quickest way: A-B-C and P1-P9 mapping

When to use it: For MCQs and short case questions where you must place an item quickly.

  1. Company profile, employees, CSR, complaints: Section A.
  2. Policies, oversight, director statement: Section B.
  3. Measured performance data: Section C.
  4. Environment data (energy, water, emissions, waste): P6.
  5. Employee safety and wellness: P3. Human rights: P5. Community and CSR impact: P8. Customer data and product information: P9.
  6. If the option says BRSR Core, look for assurance.

Common mistakes in Business Responsibility and Sustainability Reporting (BRSR)

  • Saying BRSR and BRR are the same report with a new name.

    Both are tied to nine principles, so they seem identical.

    Fix: Remember BRR was narrative and based on 2011 guidelines; BRSR is more quantitative, based on NGRBC 2019, and has a three-section format.

  • Placing performance data in Section B.

    Students mix policies with outcomes.

    Fix: Section B is policy and process. Section C is measured performance against each principle.

  • Treating all Section C indicators as mandatory.

    The word 'disclosure' suggests compulsion.

    Fix: Essential Indicators are mandatory; Leadership Indicators are voluntary.

  • Mixing up principle numbers, such as P6 and P8.

    Rote memorisation without themes.

    Fix: Learn the one-word theme for each: ethics, products, employees, stakeholders, human rights, environment, policy, inclusive growth, consumers.

  • Assuming BRSR Core is a separate report.

    The name sounds like a different framework.

    Fix: BRSR Core is a subset of BRSR KPIs which needs reasonable assurance.

  • Quoting applicability thresholds as fixed forever.

    Notes are not updated.

    Fix: Say top 1,000 listed companies by market capitalisation for BRSR, and note that BRSR Core and value chain phases are set by SEBI circulars.

Worked examples

Example 1

Distinguish between BRR and BRSR. (5 marks)

Show the solution
  1. Basis: BRR followed the 2011 National Voluntary Guidelines; BRSR follows the NGRBC of 2019.
  2. Nature: BRR was largely descriptive; BRSR requires quantitative, comparable data.
  3. Structure: BRSR has three sections (A general, B management and process, C principle-wise performance); BRR had a looser format.
  4. Depth: BRSR has Essential and Leadership indicators and a BRSR Core with assurance.
  5. Applicability: BRSR is mandatory for the top 1,000 listed companies by market capitalisation from FY 2022-23.

Answer: BRSR is a structured, data-driven successor to BRR, aligned to NGRBC, with Essential and Leadership indicators and assured Core KPIs, whereas BRR was narrative and based on older guidelines.

Example 2

A listed company discloses (i) its number of employees and CSR spend, (ii) its board-approved policy on anti-corruption, and (iii) its total energy consumption and waste generated. Map each item to the BRSR section and NGRBC principle where relevant.

Show the solution
  1. (i) Employee numbers and CSR details are company profile items, so they belong to Section A.
  2. (ii) A board-approved anti-corruption policy is a policy and governance item, so it belongs to Section B, relating to Principle 1 (ethics, transparency, accountability).
  3. (iii) Energy consumption and waste are measured performance data, so they belong to Section C under Principle 6 (environment).
  4. Energy and waste data also form part of the BRSR Core attributes, so assurance applies.

Answer: (i) Section A; (ii) Section B, Principle 1; (iii) Section C, Principle 6, and also BRSR Core, requiring assurance.

Exam tips

  • Learn the one-word theme of all nine principles; MCQs often ask which principle covers a given activity.
  • Write BRR versus BRSR comparisons under fixed heads to score full marks.
  • In case questions, name the section, the principle and whether the indicator is Essential or Leadership.
  • Mention that thresholds for BRSR Core and value chain phases follow SEBI circulars, instead of stating one fixed number.

Practice questions from Recent Developments in Financial Reporting

Business Responsibility and Sustainability Reporting (BRSR) in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Business Responsibility and Sustainability Reporting (BRSR): frequently asked questions

What is the BRSR format?

It is SEBI's disclosure format for listed companies, filed with the annual report. It has three sections: general disclosures, management and process disclosures, and principle-wise performance disclosures.

What are the nine principles of NGRBC in BRSR?

They cover ethics and accountability, sustainable and safe goods and services, employee well-being, stakeholder responsiveness, human rights, environment, responsible policy advocacy, inclusive growth, and responsible consumer engagement.

Who must file BRSR?

The top 1,000 listed companies by market capitalisation must file it, mandatorily from FY 2022-23. Other companies may report voluntarily.

What is BRSR Core?

It is a smaller set of key indicators within BRSR that need reasonable assurance from an independent assurer. SEBI has phased it in, starting with the top 150 listed entities from FY 2023-24.