Reporting Frameworks (BRSR, SASB, ISSB)

Just as financial reporting follows accounting standards (Ind AS, IFRS), sustainability reporting follows its own frameworks. The difference is that there are multiple competing frameworks rather than one dominant standard, which creates comparison challenges but also reflects the diversity of stakeholder needs.

For Indian companies, the most important framework to understand is BRSR (Business Responsibility and Sustainability Reporting), which is mandated by SEBI. Globally, the ISSB (International Sustainability Standards Board) has emerged as the leading standardiser, having published IFRS S1 (general sustainability disclosures) and IFRS S2 (climate-related disclosures) in 2023.

Analysts need to understand these frameworks to correctly interpret company disclosures, identify gaps, and make cross-company comparisons, especially as mandatory assurance requirements tighten.

BRSR (Business Responsibility and Sustainability Reporting):

• Mandated by SEBI for top 1,000 listed companies by market cap from FY2022–23
• Replaces the earlier BRR (Business Responsibility Report)
• Structure: General disclosures, Management & Process disclosures, Principle-wise performance disclosures (9 principles covering business ethics, stakeholder wellbeing, environment, governance, customer welfare, etc.)
• BRSR Core: A subset of high-quality, assurance-ready KPIs introduced from FY2023–24, eventually requiring third-party assurance

ISSB (IFRS S1 and S2):

• IFRS S1: General requirements for sustainability-related financial disclosures (governance, strategy, risk management, metrics & targets)
• IFRS S2: Climate-specific disclosures including Scope 1/2/3 emissions, scenario analysis, physical and transition risk
• Builds on TCFD recommendations (Task Force on Climate-related Financial Disclosures)

Other frameworks (context):

• GRI (Global Reporting Initiative): Impact-focused, covers all stakeholders, most widely used globally for voluntary reporting
• SASB (Sustainability Accounting Standards Board): Industry-specific, investor-focused, financially material metrics. Now part of IFRS Foundation alongside ISSB.
• CDP (formerly Carbon Disclosure Project): Specialised climate, water, and forests disclosure platform