Over half of India's top 100 listed companies voluntarily disclose Scope 3 data in BRSR, says PwC India

India’s top 100 listed companies have made notable disclosures regarding their Scope 3 emissions data for the fiscal year 2023. Despite being voluntary under the Business Responsibility and Sustainability Reporting (BRSR) framework, 51 per cent of these companies have chosen to disclose this crucial information, indicating a growing commitment to environmental accountability, a recent report by PwC India has revealed.

Introduced by SEBI in May 2021, the BRSR framework aims to enhance transparency and accountability in corporate reporting, aligning with global standards such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB).

Sambitosh Mohapatra, Partner & Leader of ESG at PwC India, emphasized, “With the BRSR becoming a mandatory report for businesses, ESG considerations have become key strategic priorities in boardroom discussions. This is a testimony of the enhanced awareness of the importance of sustainability and responsible business practices.”

The report highlights various findings, revealing that 89 per cent of companies disclosed information on leadership indicators, indicative of a growing emphasis on responsible business practices. Additionally, 44 per cent of companies conducted life-cycle assessments of their products or services, demonstrating a comprehensive understanding of their environmental impact.

In terms of emissions reduction efforts, it was noted that 34 per cent of companies managed to reduce their Scope 1 emissions, while 29 per cent reduced their Scope 2 emissions. This reduction was attributed to various initiatives, including the adoption of energy-efficient technologies and the transition to renewable energy sources.

Furthermore, nearly half of the companies (49 per cent) increased their energy consumption from renewable sources, signaling a shift towards cleaner energy alternatives. Additionally, 31 per cent of companies disclosed their net-zero targets, indicating a proactive approach towards mitigating climate change.

The report emphasizes the evolving landscape of ESG reporting in India and the increasing importance of sustainability in corporate decision-making. As India strives to achieve its net-zero emissions target by 2070, businesses are recognized as pivotal players in this transition.

The findings highlight the need for companies to continually assess and enhance their ESG guidelines and processes to ensure quality and consistency in reporting. India's adoption of the BRSR framework positions it as a frontrunner in global sustainability reporting, fostering transparency and credibility in corporate disclosures.

As businesses embrace ESG principles, they not only contribute to environmental preservation but also drive economic and social progress, paving the way for a sustainable future.

Sumit Seth, Chartered Accountant, stated, “The introduction of the BRSR marks a pivotal shift towards a transparent, more inclusive, and globally harmonized reporting framework in India. The framework empowers investors and other stakeholders to make informed decisions about the sustainability performance of the company.”

The report analyzes the publicly accessible BRSR reports of top 100 companies (Nifty 50 companies and NEXT 50 listed companies) and their response to the regulatory requirement of mandatory reporting under the BRSR for the financial year ended 31 March 2023 (FY23).