SEBI’s ESG Push: India’s Surge in Corporate Disclosures

Recently, CareEdge Research has found that Environmental, Social, and Governance (ESG) reporting by Indian corporates has improved significantly since 2020. The team has also found that the increase in ESG disclosures in India is due to the Securities and Exchange Board of India’s increased push for ESG disclosures.

About the CareEdge Research on ESG disclosures in India

The CareEdge Research analyzed the reports from the top 1,000 listed entities of India over the past three fiscal years.

The team calculated the ESG disclosures based on the integrated reports, sustainability reports, and business responsibility and sustainability reports (BRSR) released by these listed entities. This led to an upgrade in the ESG scores of these companies.

Note: SEBI made Business Responsibility and Sustainability Reports (BRSR) mandatory for the top 1,000 listed entities to disclose sustainability data for FY23 onwards.

What are the key findings of CareEdge Research on ESG disclosures in India?

salient findings on esg disclosures in india

There has been a substantial jump of 160% in ESG reporting from FY20 to FY22 by Indian corporates. For example, the number of companies making ESG disclosures has increased from a meagre 127 in fiscal 2020 to 330 in fiscal 2022.

About 18% of the target companies voluntarily disclosed the BRSR data in FY22.

Although the collective rating of the leading 1,000 listed businesses still falls within the “Average” rating range, companies that have revealed their ESG data have seen a commendable increase of almost 15% in their ratings during the last three years.

Sector-wise disclosure:

  • Energy and utilities sector: This sector saw close to 50% of companies reporting on ESG parameters.
  • Service sector entities: Around 41% of them in the last 3 fiscals have reported ESG data.
  • Materials sector: The materials sector’s average ESG performance has increased by 20%. This showcases how heavy-emitting industries such as steel, cement, and mining are gradually adopting green initiatives.

Read more: ESG reporting: Driving Sustainability and Responsible Business Practices

The ESG disclosures in India from private entities are not only in line with the recent Budget push for green growth but also aid India’s commitment towards achieving Net Zero by 2070. With BRSR becoming mandatory, there will be a further boost for Indian corporates to transition towards sustainable practices.

Finding ESG disclosures difficult, FigBytes is there for you. FigBytes simplifies the complexity and brings your entire ESG vision to life in one, intuitive platform. It is high time for you to start disclosing ESG requirements not for mandatory BRSR norms but for showcasing your contribution to a sustainable world.

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