Perspective on ESG Reporting in the Indian Power Sector

Environmental, Social, and Governance (ESG) refers to a set of criteria used to assess a company’s sustainable business practices and their impact. Business Responsibility and Sustainability Reporting (BRSR) is a comprehensive ESG reporting framework introduced by the Securities and Exchange Board of India (SEBI). Indian regulators introduced a simple BRSR Lite format to encourage voluntary ESG disclosures by unlisted business entities, including MSMEs. The article is based on triangulation of methods, literature review, primary survey of working executives, and expert interviews. The article uncovers the impact of BRSR reporting on the Indian power sector companies. It lists implementation challenges and the activities undertaken to address gaps in existing reporting. Several suggestions are made for power sector companies’ transition to BRSR (BRSR-lite) reporting. With the investor’s narrowed focus, BRSR is fast becoming an imperative, and companies that embrace transparent, actionable sustainability strategies may emerge as leaders. Over time, ESG in the power sector may shift from disclosure to performance governance, influencing capital allocation, tariff regulation, and infrastructure planning.