The increasing materiality of climate risks and the growing emphasis on sustainable finance have prompted regulatory bodies worldwide to mandate enhanced environmental, social, and governance (ESG) disclosures. In India, the Securities and Exchange Board of India (SEBI) introduced the Business Responsibility and Sustainability Reporting (BRSR) framework in 2021 as a structured approach to corporate ESG reporting. By aligning with global sustainability standards such as the Task Force on Climate-related Financial Disclosures (TCFD), Global Reporting Initiative (GRI), and Sustainability Accounting Standards Board (SASB), BRSR aims to elevate corporate accountability, facilitate informed investor decision-making, and strengthen India’s position in global capital markets.

This study critically examines BRSR’s regulatory intent, corporate implications, and financial impact while addressing key challenges in data standardization, compliance costs, and greenwashing risks. Through an extensive review of policy documents, academic literature, and case studies of large-cap and mid-cap corporations, we evaluate the framework’s effectiveness in integrating climate risk considerations, ESG governance structures, and sustainable investment strategies into corporate decision-making. Our findings highlight that while BRSR enhances ESG transparency and investor confidence, gaps remain in corporate ESG literacy, sector-specific reporting mandates, and third-party assurance mechanisms, which hinder full implementation.

By providing policy recommendations—including ESG capacity-building, regulatory refinements, and technology-enabled reporting solutions—this study underscores the need for a more robust, scalable, and globally harmonized ESG disclosure framework. As India transitions toward a low-carbon economy, BRSR serves as a critical catalyst for sustainable finance, risk-adjusted capital allocation, and responsible corporate governance, reinforcing its pivotal role in shaping the future of financial markets in emerging economies