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Environmental, Social and Governance (ESG) - Principles and Practice · Environment

Environmental Reporting and Disclosure Standards: BRSR, GRI, TCFD and ISSB

Updated 11 October 2026 · Fact-checked

Environmental reporting is how a company discloses its impact on the environment and its climate risks. In India, BRSR Principle 6 is the mandatory format for top listed companies. GRI, TCFD, ISSB and CDP are global frameworks. To answer questions, name the framework, state its purpose, and link it to disclosure and greenwashing risk.

Understand Environmental Reporting and Disclosure Standards

Environmental reporting means a company tells investors and other stakeholders how its operations affect the environment, and how environmental and climate issues affect the company. The aim is information that is comparable, reliable and useful for decisions.

There are two ways to look at impact. Impact materiality asks how the company affects people and the planet. Financial materiality asks how environmental and climate issues affect the company's value. GRI leans towards impact. TCFD and ISSB focus on financial effects. Some regimes use both, called double materiality.

In India, SEBI requires the top listed entities (as notified under the Listing Regulations) to file the Business Responsibility and Sustainability Report (BRSR). It is built on nine principles. Principle 6 covers the environment. It asks for data on energy consumption, water withdrawal and discharge, air emissions, greenhouse gas (GHG) emissions (Scope 1 and Scope 2, and Scope 3 on a voluntary basis), waste management, biodiversity impact and environmental compliance. It also asks about resource efficiency and any initiatives taken.

Global frameworks differ in role. GRI is a set of sustainability reporting standards for a wide group of stakeholders. TCFD gave a climate-risk disclosure structure built on four pillars: governance, strategy, risk management, metrics and targets. ISSB issues IFRS Sustainability Disclosure Standards for investors: IFRS S1 for general sustainability disclosures and IFRS S2 for climate. IFRS S2 builds on the TCFD structure. CDP is a disclosure platform where companies answer questionnaires on climate, water and forests, and receive scores.

Green finance is funding for projects with environmental benefit, for example green bonds whose proceeds go to renewable energy or energy efficiency. Issuers must report on use of proceeds. Greenwashing is making misleading or unsupported environmental claims. Avoid it with verifiable data, clear boundaries, consistent standards, third-party assurance and honest disclosure of limits and failures.

Key rules to remember

TCFD four pillars
Governance + Strategy + Risk management + Metrics and targets
Use this to structure any answer on climate-related financial disclosure. IFRS S2 follows the same core structure.
GHG scopes
Total emissions = Scope 1 + Scope 2 + Scope 3
Scope 1 is direct emissions, Scope 2 is purchased energy, Scope 3 is other value chain emissions. In BRSR Principle 6, Scope 1 and 2 are reported, Scope 3 is voluntary.
Emission intensity
Intensity = Total emissions ÷ Output measure (for example turnover in ₹ or tonnes produced)
BRSR asks for intensity per rupee of turnover, so you can compare companies of different sizes.
Materiality lenses
Double materiality = Impact materiality + Financial materiality
GRI is impact-focused; ISSB is investor and financial focused.
Water balance
Water consumed = Water withdrawn − Water discharged
Use as a quick check when reading Principle 6 water data.

How to solve Environmental Reporting and Disclosure Standards questions

Use this order for any theory or case question on environmental reporting, as the paper expects provision, analysis and conclusion.

  1. 1Identify what is asked: a framework, a comparison, a BRSR disclosure, green finance or greenwashing.
  2. 2Define the framework or term in one or two lines, with its issuer and purpose.
  3. 3State the core content: BRSR Principle 6 areas, TCFD pillars, ISSB S1 and S2, GRI standards, or CDP questionnaires.
  4. 4Apply to the facts given. Name the company's claim or data and test it against the framework.
  5. 5Note the materiality lens and the audience: investors, regulators or wider stakeholders.
  6. 6For greenwashing, list the red flags (vague claims, no evidence, selective data) and the safeguards.
  7. 7Conclude with a clear recommendation, including the role of the Company Secretary in compliance and board reporting.

Quickest way: Framework, Focus, Fact method

When to use it: Use when you have little time or the question asks for a short note or a difference between frameworks.

  1. Write the framework name and who issues it.
  2. Write its focus in one line: impact, climate-finance risk, investor baseline or scoring platform.
  3. Add two or three content points, such as four pillars for TCFD.
  4. Add one fact from the question or one Indian link, such as BRSR Principle 6.
  5. Close with one line on assurance or greenwashing risk.

Common mistakes in Environmental Reporting and Disclosure Standards

  • Saying TCFD is still the main standard that companies must follow globally.

    Older material treats TCFD as the leading framework.

    Fix: Say TCFD set the climate disclosure structure and IFRS S2 under ISSB builds on it. Present ISSB as the investor-focused baseline.

  • Treating BRSR as a voluntary report for all companies.

    Students mix BRSR with voluntary GRI reporting.

    Fix: State that BRSR is mandatory for the listed entities SEBI has notified, and GRI is voluntary unless a law requires it.

  • Confusing Scope 1, 2 and 3 emissions.

    The labels sound alike and are memorised without examples.

    Fix: Link each to a source: own fuel burning is Scope 1, purchased electricity is Scope 2, suppliers and product use is Scope 3.

  • Describing CDP as a reporting standard like GRI.

    Both involve disclosure.

    Fix: Call CDP a disclosure platform with questionnaires and scoring, not a standard-setting body.

  • Defining greenwashing only as lying.

    Students ignore misleading omissions and vague wording.

    Fix: Include exaggerated, unsupported, selective or vague claims, and give safeguards such as assurance and clear boundaries.

  • Writing a list of frameworks without applying them to the facts.

    Students rely on memorised notes.

    Fix: Tie each point to the company in the question and end with a conclusion.

Worked examples

Example 1

Distinguish between GRI, TCFD and ISSB standards in the context of environmental reporting.

Show the solution
  1. Start with purpose. GRI helps organisations report their impact on the economy, environment and people to a wide group of stakeholders.
  2. TCFD gave a structure for climate-related financial disclosure through governance, strategy, risk management, and metrics and targets.
  3. ISSB issues IFRS S1 (general sustainability-related disclosures) and IFRS S2 (climate-related disclosures) for investors. S2 builds on the TCFD structure.
  4. Compare focus. GRI is impact-oriented. TCFD and ISSB are focused on financial effects on the company.
  5. Compare audience. GRI serves many stakeholders. TCFD and ISSB serve investors and lenders.
  6. Conclude that a company may use GRI for impact reporting and ISSB for investor-grade climate disclosure, with BRSR for Indian regulatory filing.

Answer: GRI is an impact-focused standard for all stakeholders. TCFD was a four-pillar climate risk framework. ISSB sets investor-focused IFRS S1 and S2 standards, with S2 building on TCFD. They are complementary and can be used together.

Example 2

Ananya Textiles Ltd, a listed company, states in its brochure that it is 'fully eco-friendly' and 'carbon neutral'. Its BRSR shows rising Scope 1 and Scope 2 emissions and no assurance of the claim. Advise the board.

Show the solution
  1. Identify the issue: the claims appear to be greenwashing because they are broad and unsupported.
  2. Compare with BRSR Principle 6 data. Rising Scope 1 and 2 emissions contradict a claim of carbon neutrality unless offsets are disclosed and verified.
  3. Note the risk: misleading statements can harm investors, damage reputation and invite regulatory or consumer action.
  4. Recommend withdrawing or qualifying the claims, and stating what is covered, such as boundary, period and method.
  5. Recommend consistent disclosure across brochure and BRSR, supported by independent assurance and a documented emission calculation.
  6. Recommend that the board and Company Secretary set a review process for environmental claims before publication.

Answer: The claims are likely greenwashing. The company should withdraw or qualify them, align public statements with BRSR Principle 6 data, obtain assurance, disclose any offsets and methods, and adopt a pre-publication review of environmental claims.

Exam tips

  • Learn Principle 6 as a list of areas: energy, water, air emissions, GHG, waste, biodiversity, compliance and resource initiatives.
  • For comparison questions, use a short table-like layout with lines for purpose, focus, audience and status, written in plain points.
  • Always link a global framework to the Indian BRSR to show practical understanding.
  • In case questions, spot the red flag first, then apply the rule, then advise.
  • Write the Company Secretary's role in the conclusion: compliance, board reporting, data controls and assurance coordination.

Practice questions from Environment

Environmental Reporting and Disclosure Standards in other exams

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

Environmental Reporting and Disclosure Standards: frequently asked questions

What does BRSR Principle 6 require companies to disclose?

It covers environmental performance. This includes energy use, water withdrawal and discharge, air emissions, GHG emissions, waste management, biodiversity impact and environmental compliance. It also asks about initiatives for resource efficiency.

What is the difference between GRI, TCFD and ISSB?

GRI is impact-focused and serves many stakeholders. TCFD set a four-pillar structure for climate financial risk. ISSB issues IFRS S1 and S2 for investors, and S2 builds on the TCFD structure.

What is greenwashing and how can a company avoid it?

Greenwashing is making misleading or unsupported environmental claims. A company can avoid it by using verifiable data, clear boundaries, recognised standards, independent assurance and balanced disclosure, including shortfalls.

Is CDP a reporting standard?

No. CDP is a platform where companies disclose climate, water and forest data through questionnaires and receive scores. It is used by investors and others, but it does not set reporting standards like GRI or ISSB.