New analysis of 300 listed companies finds improving disclosure quality, expanding climate reporting and growing relevance of sustainability data for investment decision-making
MUMBAI (India CSR) – CFA Institute, the global association of investment professionals, today released “The Current State of BRSR in Corporate India 2.0,” the second edition of its flagship study analysing sustainability disclosures across India’s listed companies. Building on its inaugural report, the latest edition provides one of the most comprehensive analyses of Business Responsibility and Sustainability Reporting (BRSR) data in India, capturing how disclosure practices have evolved over time and assessing their quality, consistency, and relevance for investment decision-making.
Drawing on data from 300 listed companies over three financial years (FY2022–23 to FY2024–25), the report highlights measurable improvements in both the breadth and quality of disclosures, while identifying key areas that require further strengthening to enhance decision-usefulness for investors.
Gaurav Kapur, Senior Director, Government Relations & Advocacy – India, CFA Institute, said: “Our latest report highlights a clear shift in India’s sustainability landscape, from increased disclosures to greater focus on its quality, credibility, consistency, and usefulness. What is particularly encouraging about the findings, is not just the increase in disclosures, but the growing maturity of reporting practices across corporate India. In a relatively short period, companies have moved from building reporting capabilities to embedding sustainability considerations more systematically within their governance and decision-making processes. Through BRSR 2.0, CFA Institute remains committed to supporting the next phase of sustainability reporting in India.”
Key findings:
- Improved disclosure coverage and consistency: Sustainability reporting has strengthened both quantitatively and qualitatively, with broader participation and more structured disclosures across sectors.
- Expansion in climate and energy-related reporting:
- Renewable energy disclosure increased from 224 to 252 companies over three years.
- Scope 1[1] and Scope 2 emissions reporting reached 283 companies, indicating near-universal coverage.
- Gradual rise in value chain and Scope 3 disclosures: Scope 3 emissions reporting expanded significantly from 114 to 153 companies, though variability across sectors persists.
- Steady adoption of sustainable practices:
- Companies reporting sustainable sourcing increased to 79 percent by FY2024–25.
- Capex allocation toward sustainability-linked technologies has broadened, with over 50 percent of companies reporting some investment.
- Reporting of environmental and social impact-related capital expenditure continued to improve, with fewer companies leaving such disclosures unreported.
- Data quality improving, but gaps remain: Stakeholders continue to face challenges around comparability, standardisation, and methodological clarity, limiting deeper analytical use.
- BRSR evolving primarily as a risk management tool:
- While widely used by investors, BRSR data is not yet a consistent alpha-generating input, highlighting the need for further refinement.
- Investors identified data consistency, comparability and climate-transition information as key priorities for the next phase of BRSR evolution.
Paul Moody, Managing Director, Global Partnerships & Client Solutions, CFA Institute, said: “Sustainability disclosures are no longer a peripheral compliance exercise. For global investors, the quality and comparability of sustainability data are as important as its availability. Through our ongoing analysis of BRSR disclosures, CFA Institute is contributing to a deeper understanding of how ESG data can better inform investment decisions. This report underscores both the progress India has made and the opportunity to further enhance reporting frameworks in line with global expectations..”
Key recommendations:
- Enhance standardisation and comparability: Clearer reporting guidance, consistent units, and stable methodologies are critical to improve usability of disclosures.
- Strengthen forward-looking climate disclosures: Greater focus on transition pathways, climate risks, and scenario-based data is needed to support investment decision-making.
- Improve transparency and data integrity: Companies should provide better explanations for year-on-year changes and disclose underlying assumptions and calculations.
- Adopt sector-specific reporting approaches: Tailoring metrics to sector realities can reduce generic disclosures and improve analytical relevance.
- Expand assurance and build ecosystem capacity: Strengthening third-party assurance practices and building sustainability expertise across organisations will be key to improving data credibility.
Compared with the inaugural report, the second edition reflects a clear shift from early-stage adoption to more mature and structured sustainability reporting across corporate India, with improved data coverage, greater consistency, and broader sector participation. There is also a noticeable deepening of disclosures, particularly around climate, energy use, and value chains—alongside growing investor focus on the quality, comparability, and decision-usefulness of BRSR data, marking a transition from compliance-led reporting to more meaningful integration of sustainability considerations into business practices.
More insights on the report here.
