ESG Reporting for Indian Companies: Sustainability Accounting Framework and CA's New Role
Introduction to ESG reporting requirements, BRSR for top 1000 companies, carbon accounting, assurance services, and CA opportunities
Written by
CA Ashama Rajawat
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.
What is ESG?
ESG refers to three pillars of corporate sustainability:
- •Carbon emissions
- •Water usage
- •Waste management
- •Renewable energy
- •Employee welfare
- •Diversity & inclusion
- •Community impact
- •Human rights
- •Board composition
- •Ethics & compliance
- •Shareholder rights
- •Anti-corruption
BRSR: Business Responsibility and Sustainability Report
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
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: The New Skill for CAs
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
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 for Chartered Accountants
ESG Reporting Services
Help companies prepare BRSR, collect data, design frameworks.
Carbon Accounting
Calculate Scope 1,2,3 emissions, prepare carbon footprint reports.
ESG Assurance
Independent verification of ESG disclosures.
ESG Rating Advisory
Help improve ESG scores (MSCI, S&P, CRISIL ratings).
How CAs Can Upskill
- ✓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 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.
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
Conclusion
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.