BRSR vs ESG: What's the Difference and Why It Matters for Indian Companies

As Indian companies accelerate their sustainable Net-Zero commitments, businesses are bound to encounter two powerful frameworks namely BRSR and ESG. These are integral in determining how their sustainable practices can be not only tracked, but also reported and improved. While these terms can replace each other, they serve very different goals. Understanding their distinction is critical not just for compliance—but for competitive advantage.

What is ESG?

Environmental, Social, and Governance (ESG) is a global framework that can be used by investors to assess a company’s sustainability risks as well as opportunities. These guidelines go beyond just the financial performance of a business and evaluates how it handles its carbon emissions, labor practices, data privacy, board diversity, and ethical governance.

Global ESG ratings, from companies such as MSCI or Sustainalytics, can be indicators for investors, influencing their decisions to direct capital, shape investment flows. Companies with high ESG scores often attract lower-cost capital, stronger partnerships, and better customer loyalty.

Photo by Anders J on Unsplash

What is BRSR?

Mandated by SEBI, the Business Responsibility and Sustainability Report (BRSR) is India’s standardized ESG reporting format for the top 1,000 listed companies by market capitalization. Implemented from FY 2022–23, it standardizes reporting across nine key principles, including environmental responsibility to employee well-being to business ethics and inclusive growth.

In short:

• ESG is the lens through which impact is evaluated.

• BRSR is the tool Indian regulators have mandated to measure and disclose that impact.

Why This Matters Now More Than Ever

With sustainability metrics taking center stage when it comes to global supply chains, there emerges a need for Indian business to act fast. Moving beyond just a ticking-off exercise, BRSR serves as a sign to global investors, buyers, and partners. It’s become an icon of transparency and responsibility.

In fact, companies that lead in sustainability also tend to lead in profitability over the long term. Lower emissions mean energy savings, operational efficiency, and reduced regulatory risks. With the right data and tools, sustainability becomes a business advantage.

How Fitsol Helps Bridge the Gap

This is where Fitsol plays a catalytic role. As a number one decarbonization partner, Fitsol enables companies to track their real-time emissions and provides tailor-made carbon accounting, and net-zero strategies. Our solutions help companies generate the granular, verifiable data required for BRSR compliance, while also strengthening their ESG credentials.

Therefore, it is important now more than ever for businesses to understand the difference between BRSR and ESG. For Indian companies, this is the time to align with both frameworks—BRSR for compliance and ESG for competitiveness.