CFA Institute, NSE, and CFA Society India unveil the first edition of BRSR (Business Responsibility and Sustainability Reporting) Data Assessment

New research highlights significant trends in ESG reporting and gaps in sustainability and DE&I practices among listed Indian corporates.

CFA Institute, the global association of investment professionals, in partnership with CFA Society India and the National Stock Exchange of India (NSE), has unveiled the first edition of its ‘Business Responsibility and Sustainability Reporting (BRSR)’ data assessment. This comprehensive report highlights the evolving ESG landscape in corporate India, providing valuable insights into the latest trends and practices adopted by listed Indian companies around sustainability efforts.

Introduced by the Securities and Exchange Board of India (SEBI) in 2021 and updated in 2023, the BRSR framework mandates the top 1,000 listed companies to disclose key ESG factors. To understand the current state of sustainability disclosures and identify areas for improvement, CFA Institute, the National Stock Exchange, and CFA Society India collaborated to analyze the BRSR reports from 300 of the Top 1000 companies for FY23 and the year before. Key findings of their analysis include:

• Sustainability:
  • Over 75% of companies have adopted sustainable sourcing practices, with 230 out of 300 reporting established procedures for it.
  • More than half the companies don’t report R&D investments in specific technologies to improve the environmental and social impacts. Having said that, we also observe that the number of companies reporting this has increased in FY23 from FY22 (to 148 from 141).
  • 40% of companies don’t report capital expenditure in specific technologies to improve the environmental and social impacts. However, we also observe that the number of companies reporting this number has increased in FY23 from FY22 (to 180 from 169).
• Environmental Protection and Restoration:
  • Over 96% of companies (289) reported their energy consumption in FY23, up from 286 in FY22. Energy intensity data reveals that companies used 13% less energy per unit of revenue in FY23 compared to FY22.
  • 94% (282 companies) reported their scope 1 and scope 2 emissions data in FY23 and this number has increased marginally from FY22 (281 companies). As seen in emission intensity data, the companies are emitting 14% less CO2e for the same unit of revenue generation, in FY23 vs. FY22.
  • Less than 40% companies (110 out of 300) reported Scope 3 emissions in FY23, but this number has increased from FY22 (93 companies). As seen in emission intensity data, the companies are emitting 25% less CO2e for the same revenue, in FY23 vs. FY22.

• Workforce Disclosures:

  • Employee turnover has risen from approximately 16% in FY21 to around 22% in FY23, reflecting a steady increase following the COVID-19 pandemic. In contrast, worker turnover has remained relatively stable, with only a marginal increase from 7-8% in FY21 to 8-9% in FY23.
  • Less than 0.5% of employees are differently abled, vis-à-vis official data showing that 2.2% of India's population is differently abled.

  Commenting on the findings, Arati Porwal, Country Head, CFA Institute said, “CFA Institute is excited to present the inaugural edition of BRSR data analysis, covering multiple reported parameters. This research offers a vital benchmark for companies to evaluate their progress on ESG benchmarks and pinpoint areas for improvement. By understanding these trends, businesses and investors can make informed decisions, promoting a more sustainable and resilient economy. Through this analysis, we aim to support more transparency and accountability in ESG reporting.”

   Dr. Tirthankar Patnaik, Chief Economist, NSE said, “NSE is committed to fostering a sustainable and responsible business ecosystem. By providing stakeholders with access to reliable BRSR data and actionable insights, we aim to drive positive change and contribute to a more sustainable future. Investors are increasingly recognizing the importance of ESG factors beyond financial returns. As a result, there is a growing demand for greater transparency and accountability from companies regarding their sustainability practices. This report, a collaborative effort, provides valuable insights to help companies adopt ESG reporting that aligns with global standards. NSE is committed to fostering a sustainable and responsible business ecosystem.”
  “CFA Society India is pleased to collaborate with NSE and CFA Institute on this critical research, marking an important step in corporate progress towards sustainability in India. CFA® charter holders bring extensive industry expertise and deep networks within the society to provide informed recommendations and meaningful insights into the identified issues. 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.” said Rajesh Sehgal, CFA, Chairperson, CFA Society India.

  Read the full report here.