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Business10 min readUpdated April 11, 2025

ESG Reporting for Indian Companies

Introduction to ESG reporting requirements, BRSR for top 1000 companies, carbon accounting, assurance services, and CA opportunities

by CA Ashama Rajawat· Chartered Accountant· April 11, 2025· 10 min read
TL;DR — ESG Reporting Essentials for India
  • Mandatory BRSR for top 1000 listed companies (since FY 2022-23)
  • ESG assurance required for top 150 companies from FY 2026-27
  • Carbon accounting = measuring Scope 1, 2, 3 emissions (GHG Protocol)
  • CAs opportunity: ESG reporting services fee ₹5L-50L, assurance ₹10L-1Cr
  • ICAI offers 100-hour certification in ESG Reporting & Assurance

The future is green

mandatory · top 1000
ESG (Environmental, Social, Governance) reporting is now mandatory for top 1000 listed companies in India. By 2027, ESG assurance will be required, creating massive opportunities for Chartered Accountants.
the three pillars

What is ESG?

ESG refers to three pillars of corporate sustainability:

Environmental

  • — Carbon emissions
  • — Water usage
  • — Waste management
  • — Renewable energy

Social

  • — Employee welfare
  • — Diversity & inclusion
  • — Community impact
  • — Human rights

Governance

  • — Board composition
  • — Ethics & compliance
  • — Shareholder rights
  • — Anti-corruption
brsr

BRSR: Business Responsibility and Sustainability Report

Who must file BRSR?

Top 1000 listed companies by market cap (mandatory from FY 2022-23)

Deadline: Along with Annual Report (within 60 days of AGM)

Format: 9 sections covering 150+ data points

Assurance: Voluntary for FY 2023-24, mandatory from FY 2026-27

brsr structure

9 Sections of BRSR

Section A: General Disclosures (company profile, products, employees)

Section B: Management & Process Disclosures (ESG committee, policies)

Section C
Principle-wise Performance (9 National Guidelines on Responsible Business Conduct)
carbon accounting

Carbon Accounting: The New Skill for CAs

What is carbon accounting?

Measuring, reporting, and verifying greenhouse gas (GHG) emissions from business operations.

Scope 1: Direct emissions (company vehicles, factories)

Scope 2: Indirect emissions (purchased electricity)

Scope 3: Value chain emissions (suppliers, logistics, customers)

Standard: GHG Protocol (global standard), ISO 14064

assurance

ESG Assurance Services

Assurance means independent verification of ESG data accuracy (like financial audit, but for sustainability metrics).

Limited Assurance

Review-level engagement, less rigorous. "Nothing came to our attention" conclusion.

Reasonable Assurance

Audit-level engagement, highly rigorous. "In our opinion, data is fairly stated" conclusion.

SEBI Requirement: Top 150 companies must get reasonable assurance on BRSR core from FY 2026-27.

opportunities

Opportunities for Chartered Accountants

01 · ESG Reporting Services

Help companies prepare BRSR, collect data, design frameworks. Fee: ₹5L - ₹50L

02 · Carbon Accounting

Calculate Scope 1,2,3 emissions, prepare carbon footprint reports. Fee: ₹3L - ₹25L

03 · ESG Assurance

Independent verification of ESG disclosures. Fee: ₹10L - ₹1Cr (similar to audit)

04 · ESG Rating Advisory

Help improve ESG scores (MSCI, S&P, CRISIL ratings). Fee: ₹5L - ₹30L

upskilling

How CAs Can Upskill

Training & certification paths

  • Certificate Courses: ICAI's ESG Reporting & Assurance course (100 hours)
  • GHG Protocol Training: Online course by WRI/WBCSD
  • ISAE 3000: International Standard on Assurance Engagements (ESG audit framework)
  • Industry Knowledge: Understand sector-specific ESG metrics (manufacturing, IT, BFSI)
challenges

Challenges in ESG Reporting

Data Collection

ESG data scattered across departments (HR, operations, CSR). No centralized system.

Greenwashing Risk

Companies may exaggerate sustainability efforts. Assurance prevents this.

Lack of Standards

Multiple frameworks (GRI, SASB, TCFD, BRSR). Convergence needed.

roadmap

Future Roadmap

FY 2025-26: BRSR core for top 250 companies

FY 2026-27
Reasonable assurance mandatory for top 150 companies

FY 2027-28: Extended to top 500 companies

Beyond
Global convergence with ISSB standards, ESG rating impact on cost of capital
bottom line

Conclusion

The future of accounting is green

ESG reporting is the biggest opportunity for Chartered Accountants since GST. With mandatory assurance coming by 2027, CAs who upskill in carbon accounting, sustainability metrics, and ISAE 3000 will dominate this ₹10,000+ crore market. The future of accounting is green—start learning now.

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