Corporate Governance

ESG Compliance Guide

Environmental, Social, and Governance framework for Indian businesses - BRSR requirements, labour-related disclosures, and sustainable business practices.

The Three Pillars of ESG

Environmental

Climate action, resource management, and environmental stewardship

Carbon emissions and climate risk
Energy efficiency and renewables
Water management and conservation
Waste management and circular economy
Biodiversity and ecosystem impact

Social

Human capital, community relations, and social responsibility

Labour practices and working conditions
Employee health and safety
Diversity, equity, and inclusion
Human rights in supply chain
Community engagement and CSR

Governance

Corporate governance, ethics, and accountability

Board composition and independence
Executive compensation
Anti-corruption and business ethics
Risk management framework
Stakeholder engagement

Business Responsibility & Sustainability Report (BRSR)

Mandatory for top 1000 listed companies by market capitalization from FY 2022-23

Section A

General Disclosures

Company overview, products, operations, employees, CSR details

Section B

Management & Process Disclosures

Policy disclosures across 9 NGRBC principles, governance structure

Section C

Principle-wise Performance

Detailed metrics on each of the 9 NGRBC principles

BRSR Core

SEBI has introduced "BRSR Core" - a subset of key performance indicators with mandatory reasonable assurance for top 150 companies from FY 2023-24, expanding to top 1000 by FY 2026-27.

Labour-Related ESG Disclosures

Social pillar requirements under BRSR (Principle 3 & 5)

Workforce Composition

Total employees and workers (permanent, temporary, contractual)

Gender diversity at all levels

Differently-abled employees

Employee turnover rates

Training & Development

Training hours per employee

Skill development programs

Career advancement initiatives

Performance evaluation coverage

Health & Safety

Workplace injury rates (LTIFR)

Safety training coverage

Health assessment coverage

Fatalities and near misses

Labour Rights

Minimum wage compliance

Collective bargaining coverage

Grievance redressal mechanisms

Child labour prevention measures

Benefits & Welfare

Social security coverage (PF, ESI)

Health insurance coverage

Parental leave availability

Retirement benefits

9 NGRBC Principles

National Guidelines on Responsible Business Conduct

Businesses should conduct and govern themselves with integrity

Ethics & Transparency

Businesses should provide goods and services in a sustainable manner

Sustainable Products

Businesses should respect and promote well-being of all employees

Employee Well-being

Businesses should respect interests of all stakeholders

Stakeholder Engagement

Businesses should respect and promote human rights

Human Rights

Businesses should respect and protect the environment

Environment

Businesses engaged in influencing public policy should do so responsibly

Policy Advocacy

Businesses should promote inclusive growth and equitable development

Inclusive Growth

Businesses should engage with and provide value to consumers responsibly

Consumer Interest

ESG & New Labour Codes

The new labour codes significantly impact ESG disclosures, particularly in the Social pillar:

Code on Wages

• Minimum wage compliance disclosures
• Equal remuneration data
• Wage structure transparency

Social Security Code

• PF/ESI coverage metrics
• Gig worker protection data
• Maternity benefit compliance

OSH Code

• Workplace safety metrics
• Health check-up coverage
• Working hours compliance

IR Code

• Fixed-term employment data
• Standing orders compliance
• Grievance mechanism effectiveness

ESG Implementation Roadmap

1
Conduct materiality assessment for ESG factors
2
Establish ESG governance structure and accountability
3
Set measurable targets across E, S, and G pillars
4
Implement data collection and monitoring systems
5
Engage with stakeholders on ESG priorities
6
Integrate ESG into business strategy and operations
7
Prepare and publish ESG/BRSR report
8
Seek third-party assurance for key metrics

Frequently Asked Questions

BRSR is mandatory for the top 1000 listed companies by market capitalization from FY 2022-23. Other listed companies may file voluntarily. The top 150 companies must also get BRSR Core assured from FY 2023-24.

BRSR (Business Responsibility & Sustainability Report) replaced BRR (Business Responsibility Report) from FY 2022-23. BRSR is more comprehensive, with quantitative disclosures, sustainability focus, and alignment with global frameworks like GRI and TCFD.

Yes, for BRSR Core metrics. Top 150 companies need reasonable assurance from FY 2023-24, top 250 from FY 2024-25, top 500 from FY 2025-26, and top 1000 from FY 2026-27.

Labour law compliance directly feeds into ESG's Social pillar. Proper compliance with wage codes, safety standards, social security contributions, and fair employment practices all contribute to ESG scores and BRSR disclosures.