What is ESG Reporting and Why It Matters for Indian Companies

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What is ESG Reporting?

ESG Reporting is the process of measuring and reporting a company’s performance related to:

It helps companies show how they manage environmental impact, people-related responsibilities and ethical business practices.

🌱Environment (E)

This focuses on how a company impacts the environment, such as:

  • Energy consumption and renewable energy use
  • Carbon emissions (Scope 1, Scope 2, Scope 3)
  • Water usage and wastewater management
  • Waste generation and disposal
  • Pollution control compliance
👥 Social (S)

This looks at how a company treats people and society:

  • Employee health and safety
  • Labour laws and working conditions
  • Diversity and inclusion
  • Community development activities
  • Customer health & safety
🏛 Governance (G)

This relates to how the company is managed:

  • Board structure and leadership
  • Business ethics and anti-corruption policies
  • Risk management systems
  • Regulatory compliance
  • Transparency and disclosures

Why ESG Reporting Matters for Indian Companies

ESG is Becoming Mandatory in India

In India, ESG reporting is increasingly driven by regulations:

  • SEBI has made BRSR (Business Responsibility and Sustainability Report) mandatory for the top 1,000 listed companies.
  • Banks and financial institutions are asking for ESG data before approving loans.
  • Export-oriented companies must meet ESG expectations of global clients.
  • Ignoring ESG today can lead to compliance risks in the future.

Better Access to Finance and Investment

Investors and lenders now prefer companies with strong ESG practices. ESG reporting helps companies:

  • Attract domestic and foreign investors
  • Get easier access to bank loans
  • Improve company valuation and credibility

For many Indian companies, ESG performance directly impacts funding opportunities.

Improved Risk Management

ESG reporting helps identify risks early, such as:

  • Environmental penalties and legal non-compliance
  • Workplace accidents and safety failures
  • Governance issues and reputational damage

By tracking ESG data, companies can reduce operational, legal and financial risks.

Stronger Band Image and Trust

Companies that follow ESG practices are seen as:

  • Responsible and transparent
  • Trustworthy by customers and employees
  • Reliable by regulators and investors

For Indian businesses competing globally, ESG reporting improves brand reputation.

Long-Term Business Sustainability

ESG reporting is not just about compliance. It also helps companies:

  • Improve energy and resources efficiency
  • Reduce waste and operating costs
  • Build a future-ready and resilient business
Which Indian Companies Should Do ESG Reporting?

ESG reporting is useful for:

  • Listed companies (mandatory BRSR reporting)
  • Manufacturing and industrial units
  • Export-oriented businesses
  • MSMEs supplying to large corporates
  • Companies seeking bank loans or investors

Even if ESG is nor mandatory today, early adoption gives a strong advantage.

ESG Frameworks commonly Used in India

Indian companies generally follow these ESG frameworks:

  • BRSR (SEBI-India)
  • GRI (Global Reporting Initiatives)
  • TCFD (Climate-related disclosures)
  • SASB (Sector-specific standards)

The right framework depends on company size, industry and stakeholder expectations.

Common Challenges in ESG Reporting

Many Indian companies face difficulties such as:

  • Lack of ESG knowledge and internal expertise
  • Difficulty in collecting accurate ESG data
  • Confusion between multiple ESG frameworks
  • No proper system for tracking ESG metrics

This is why companies take help from ESG consultants.

How ESG Consultant Help Companies

An ESG consultant supports companies by:

  • Assessing ESG readiness and gaps
  • Identify applicable ESG regulations
  • Designing ESG data collection systems
  • Conducting materiality assessment
  • Calculating carbon footprint
  • Preparing ESG or BRSR reports

Professional support makes ESG reporting simpler, accurate and compliant.

Conclusion

ESG reporting is becoming essential for Indian companies due to regulatory pressure, investor expectations and global business requirements. It is no longer just about sustainability – it is about long-term business success.

Companies that start ESG reporting today will be better prepared for future regulations, funding opportunities and sustainable growth.

Need Help with ESG Reporting?

Vishwa Environmental Services provides professional ESG reporting and compliance support, including ESG data collection, materiality assessment, carbon footprint calculation and GRI/BRSR reporting.

Contact us today to start your ESG reporting journey with confidence.