‘E’ of Environmental, Social, and Governance (ESG) in India: reporting, review and future prospects

Nature is considered the foundation of economic growth. Its protection for a better future is necessary, with sustainability at its core for industries and society to flourish. Indian industries have diverse sectors, and some challenges and parameters are different for specific industries. However the frameworks for disclosures are the same, which is Business Responsibility and Sustainability Reporting (BRSR). BRSR for the Financial Year (FY) 2025–26 has been made mandatory for the top 1000 industries in India, but it lacks various environmental parameters. This study involves the Environmental, Social, and Governance (ESG) frameworks, standards, reporting systems, Sustainable Development Goal (SDG) targets, industry sectors, and energy consumption. Some significant gaps are observed such as the absence of universal guidelines and uniform measures for ESG reporting. Industries face the challenge of developing tailored metrics for disclosures because they are often driven more by regulatory and market pressures than environmental concerns. This paper highlights parameters within the BRSR Framework relevant to Indian industries that have not been previously addressed. They include noise pollution, animal extinction, soil pollution, and deforestation. This limitation brings difficulties for industries in reporting frameworks. To address these parameters and resolve challenges, this study aims to generate results that help develop a standard tool and recommendations for BRSR to add required parameters in the Environmental domain. This study underscores the need for BRSR to integrate sustainability, materiality, stakeholder engagement. Measurable outcomes to foster steadfast environmental commitment, advocating for universal standard for ESG measurement, particularly for the 'E' component are also highlighted.