#brsr core

BRSR Core FY 2026–27: Understanding India’s Reasonable Assurance Requirement for Listed Companies

Sustainability reporting has traditionally allowed companies to demonstrate their commitment to environmental protection and social responsibility. Corporate reports often highlight initiatives such as rooftop solar installations, net-zero targets, and community development programs. While these efforts reflect positive intentions, sustainability disclosures have historically been narrative-driven and rarely subject to independent verification.

This situation is now changing.

With the introduction of the Business Responsibility and Sustainability Reporting (BRSR) Core framework, India’s regulatory landscape is moving toward stronger accountability and transparency. The regulator, the Securities and Exchange Board of India (SEBI), has taken a significant step by ensuring that sustainability claims must now be supported by credible, verifiable data rather than simple declarations.

For India’s largest listed companies, the financial year 2026–27 will mark an important transition. From this point onward, sustainability disclosures will require structured reporting and independent assurance, ensuring that companies can substantiate the claims they make.

The Growth of ESG Reporting in India

Globally, Environmental, Social, and Governance (ESG) reporting has evolved rapidly over the past decade. Investors, regulators, and stakeholders increasingly expect organizations to demonstrate measurable sustainability outcomes rather than publish general statements about responsible business practices.

India responded to this global shift with the introduction of Business Responsibility and Sustainability Reporting (BRSR). This framework requires the top 1,000 listed companies in the country to disclose their performance across multiple ESG parameters.

Compared to earlier reporting formats, BRSR emphasizes structured, quantitative disclosures. It standardizes how ESG information is presented, making it easier for investors and stakeholders to compare sustainability performance across companies.

However, while BRSR introduced standardized reporting, regulators soon recognized the importance of ensuring that the data disclosed could also be independently verified. This need ultimately led to the creation of BRSR Core.

What Is BRSR Core?

BRSR Core is a mandatory subset of the broader BRSR reporting framework. It focuses on a specific set of critical ESG indicators that companies must disclose with reasonable assurance.

In practical terms, this means that companies cannot rely solely on self-reported data. Instead, their ESG disclosures must be validated by independent assurance providers who examine the data and confirm its accuracy.

The objective of BRSR Core is to improve the credibility and reliability of sustainability reporting. By concentrating on a defined set of measurable indicators, regulators aim to ensure that ESG disclosures are consistent, comparable, and backed by evidence.

Implementation Timeline

The rollout of BRSR Core has been designed as a phased implementation process.

Initially, the requirement applied only to the top 150 listed companies in India. Over time, the scope has gradually expanded to include more organizations.

By FY 2026–27, the requirement will extend to all top 1,000 listed companies in the country. At that stage, these companies must obtain reasonable assurance for their BRSR Core disclosures.

This effectively places sustainability reporting on a level similar to financial reporting, where information must undergo systematic verification before being publicly disclosed.

Understanding “Reasonable Assurance”

A central feature of the BRSR Core framework is the concept of reasonable assurance.

Reasonable assurance refers to a formal verification process conducted by independent auditors or assurance providers. These professionals review the company’s ESG disclosures, assess the processes used to gather the data, and evaluate the supporting documentation.

Their role is to ensure that the information being reported is accurate, reliable, and supported by evidence.

To meet these requirements, companies must implement robust internal systems for collecting, recording, and managing ESG data. This includes establishing proper documentation procedures, maintaining internal controls, and ensuring consistent data collection across business operations.

For many organizations that previously relied on narrative sustainability reporting, this represents a significant shift toward data-driven accountability.

Key ESG Indicators in BRSR Core

BRSR Core focuses on a select group of ESG indicators considered essential for evaluating corporate sustainability performance.

These indicators span the three pillars of ESG:

Environmental

Social

Governance

Although the broader BRSR framework contains numerous disclosures, the Core subset prioritizes indicators that are:

Material to sustainability performance

Quantifiable and comparable

Suitable for third-party verification

Examples of these indicators include:

Energy consumption and resource usage

Greenhouse gas emissions and climate impact

Employee welfare and workplace safety

Responsible supply chain practices

Ethical governance and business conduct

By focusing on measurable indicators, BRSR Core shifts sustainability reporting from qualitative narratives to data-backed insights.

Why the BRSR Core Mandate Is Important

The introduction of BRSR Core signals a fundamental change in how sustainability is integrated into corporate governance.

In the past, ESG reporting was often treated as a communication or branding exercise, where companies highlighted positive initiatives without rigorous verification of their claims.

The new framework changes that approach.

By requiring independent assurance, regulators are turning sustainability disclosures into accountable business metrics. This helps strengthen transparency and build trust among stakeholders, including investors, regulators, and the public.

For investors in particular, reliable ESG data plays an increasingly important role in assessing long-term risks, governance practices, and sustainability performance.

Operational Challenges for Organizations

While BRSR Core offers significant benefits in terms of transparency and accountability, the transition may present challenges for many companies.

Currently, ESG data is often managed through fragmented systems across different departments. Information may be stored in spreadsheets, manual records, or isolated reporting processes.

To meet the new requirements, organizations will need to:

Establish structured ESG data collection systems

Standardize sustainability measurement frameworks

Maintain traceable and verifiable documentation

Prepare for third-party assurance audits

Achieving this will require collaboration across departments such as sustainability, finance, operations, and compliance.

Companies that delay preparation may face difficulties as the FY 2026–27 deadline approaches.

Technology’s Role in ESG Compliance

Technology will play an increasingly important role in helping organizations comply with BRSR Core requirements.

Digital platforms designed for ESG data management, impact measurement, and automated reporting can simplify the process of collecting sustainability data across multiple business units and locations.

These tools help reduce manual reporting errors, improve data accuracy, and create a transparent audit trail that can be reviewed during assurance processes.

As sustainability reporting standards become more rigorous, technology-driven ESG management systems will likely become essential for organizations aiming to meet compliance requirements efficiently.

Preparing for the FY 2026–27 Requirement

Companies covered by the BRSR Core mandate should begin preparing well before the compliance deadline.

Key steps include:

Understanding BRSR Core indicators and disclosure expectations

Mapping existing ESG data sources within the organization

Strengthening governance frameworks and documentation processes

Implementing digital tools for ESG data tracking and reporting

Engaging assurance providers early to identify potential gaps

Taking a proactive approach will allow organizations to transition smoothly from narrative sustainability reporting to credible, verifiable ESG disclosures.

A Major Milestone for Corporate Sustainability

The introduction of BRSR Core represents a significant milestone in India’s sustainability journey.

By requiring quantitative reporting supported by independent verification, the framework raises the bar for transparency and accountability across the corporate sector.

For the top 1,000 listed companies, FY 2026–27 will mark the point when sustainability claims must be fully supported by reliable data and documented evidence.