BRSR Core FAQs

BRSR Core is a simplified set of important sustainability measures that companies need to report.

It includes around 46 key indicators related to:

• environmental impact (like emissions and energy use)

• social aspects (like employee well-being)

• governance (like ethics and compliance)

BRSR Core is part of the larger BRSR framework (which is mandatory for the top 1000 listed companies in India report annually).

Under BRSR Core, companies need to report on 9 important areas, which are grouped into three categories:​

How the company impacts the environment:

• Greenhouse gas emissions (pollution levels)

• Energy consumption

• Water usage

• Waste generation​

How company focuses on people and society:

• Employee health and safety

• Gender diversity

• Inclusive development (support for communities and equal opportunities)​

How the company is managed:

• Fairness in business practices

• Transparency and openness

Each of these areas is further broken down into specific metrics (about 46 indicators) that companies must report. Reporting on all 9 areas is mandatory for applicable companies.

BRSR Core mainly applies to large, listed companies in India, as it is part of their mandatory sustainability reporting.

It does not directly apply to unlisted companies, firms and proprietorships.

However, it can still affect your company indirectly.

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If your business is a major supplier or customer (value chain partner) of a listed company, they may ask you to provide sustainability-related data for their BRSR reporting.

So, even if it is not legally mandatory for you, you may still need to comply to continue doing business with such companies.

Your customer is asking for a BRSR Core Report because they are required to report sustainability information not only for their own operations, but also for their suppliers and business partners.

Since your customer is a listed company, it must include certain data from its value chain (including your business) in its annual report starting from FY 2025–26, as per SEBI regulations. This is why they are asking you to share your BRSR Core-related information.

A small business may need to prepare a BRSR Core Report if it works closely with a listed company.

When you supply goods or services to a listed company, you become part of its value chain (business network). These companies are required to ensure that their suppliers and partners also follow basic sustainability practices.

This includes areas like:

• reducing emissions

• using resources like water efficiently

• following fair workplace practices (such as POSH compliance)

This requirement applies regardless of the size of your business.

So, even small businesses may need to share this information to continue working with such companies.

If you do not prepare a BRSR Core Report, it may affect your chances of continuing business with large, listed companies.

Today, many listed companies are under pressure from investors and regulators to improve their sustainability performance. As a result, they are increasingly choosing to work with suppliers who follow responsible practices. This is called sustainable procurement.

This means companies may:

• prefer suppliers who track and report sustainability data

• assess and shortlist vendors based on these factors

If your business is not able to provide this information, you may be less preferred compared to other suppliers.

So, while it may not be legally mandatory for you, it is becoming important to stay competitive and retain business opportunities.

Preparing a BRSR Core Report may feel like extra work at first, but it can actually benefit your business in the long run.

It can help you:

• retain and win business from large customers, including international clients

• reduce costs by improving efficiency (for example, saving energy or water)

• build a positive reputation as a responsible and forward-looking company

For example, simple actions like regular maintenance of equipment or switching to energy-efficient lighting can reduce energy costs by 5–10% annually.

Today, many large companies closely track emissions and energy use. By preparing a BRSR Core Report, you show that your business is proactive, which reduces the risk of losing customers.

In the initial years, it is common for companies to face challenges in preparing accurate BRSR Core reports, especially if the required data is not well organized or readily available.

In such cases, companies can report based on best available data, while clearly explaining:

• how the data was estimated

• what assumptions or methods were used

Therefore, risk exists but is manageable with proper disclosure of assumptions. Over time, as companies improve their data systems, the accuracy and quality of reporting will improve.

However, going forward, there will be greater scrutiny. From FY 2026–27 onwards:

• BRSR Core data (including value chain data) will be reviewed more closely

• companies may be required to get their reports verified by an independent third party

This is being introduced to ensure that the reported data is reliable and free from major errors.

Your customer (a listed company) will collect your BRSR Core information, either through a PDF format or an online portal.

This data will then be included in their annual report, as required under SEBI regulations.

Over time, your customer may also start using this information to evaluate your sustainability performance. Based on this, they may classify suppliers as:

• preferred suppliers

• less preferred suppliers

This evaluation can influence future business opportunities with them.

The preparation of BRSR Core Report would take 10-15 days for smaller organizations with basic data availability. The major time taking attributes are GHG accounting, waste generation, openness of business. For first time preparers, framing of necessary policies will also be needed. For subsequent years, the time shall reduce considerably, if underlying data is maintained properly.

Preparing a BRSR Core Report can be a bit challenging at the beginning, especially for areas like:

• greenhouse gas (GHG) calculations

• water consumption

• waste tracking

You may also need to spend some time organizing data related to suppliers and employees for reporting purposes.

It is often helpful to take support from a domain expert in the initial years. Once your internal team understands the process and systems are in place, the report can be prepared internally with ease.

Yes, you will need to maintain some additional data beyond what is normally required for preparing your financial statements.

For example, you may need to track:

• quantity of fuel used (for energy and emissions)

• details of your suppliers (such as traders, SMEs, domestic, related parties)

• amount of waste generated, classified into different categories

• location of employees’ workplaces (for example, metro or non-metro areas)

This data helps in preparing accurate sustainability disclosures under BRSR Core.

If you do not have all the required data, you can still prepare the BRSR Core Report using reasonable estimates, especially for areas like:

• greenhouse gas (GHG) emissions

• energy consumption

• water usage

These estimates can be calculated using standard methods.

For other types of data, if it is not available, you can clearly mention this in your report.

In the first year, this approach is generally acceptable. However, going forward, your company will be expected to start maintaining proper data so that reporting becomes more accurate in future years.

Yes, the official guidance for preparing BRSR Core Report is available at this link:

Industry Standards Note on BRSR with Annexure.pdf

BRSR Core Reports are not “audited” like financial statements. Instead, they may need to go through an independent review (called assurance or assessment) to check whether the information reported is reliable. This requirement for assurance is expected to start from FY 2026–27.

You do not need any special software or expensive tools to prepare a BRSR Core Report.

Most companies can prepare it by using simple tools like:

• Microsoft Excel or Google Sheets to collect and organize data

• Shared folders to store supporting documents (evidence)

• Microsoft Word to prepare the final report

The final report is usually shared as a PDF with the listed company.

In some cases, large companies may ask you to upload this information on their own online portals, where you can also attach your workings and documents.