BRSR vs CSRD: How India's and Europe's ESG Reporting Frameworks Compare

Indian companies operating internationally or exporting to Europe now face two major ESG reporting mandates: India's Business Responsibility and Sustainability Reporting (BRSR) framework from SEBI, and the EU's Corporate Sustainability Reporting Directive (CSRD). While both require sustainability disclosure, they differ significantly in scope, methodology, and the type of company they affect. Understanding both — and where they overlap — is essential for any Indian company with EU exposure.

Who Must Comply With Each Framework?

BRSR applies to the top 1,000 listed companies in India by market capitalisation. It is a domestic regulatory requirement from SEBI, phased in from FY 2022–23. CSRD applies to large EU companies (over 250 employees or €40 million revenue) and, critically, to non-EU companies that generate over €150 million revenue in the EU market. This means large Indian companies with significant EU sales may be directly subject to CSRD, even if they are not incorporated in Europe. Additionally, EU companies required to disclose under CSRD must disclose Scope 3 supply chain emissions — which means their Indian suppliers will face indirect CSRD pressure through supply chain sustainability questionnaires.

Key Differences Between BRSR and CSRD

BRSR uses a principles-based, structured questionnaire format across nine categories of business responsibility. CSRD uses the European Sustainability Reporting Standards (ESRS), which are more granular and require a double materiality assessment (assessing both financial and impact materiality). CSRD requires third-party assurance for all disclosures from 2026, while BRSR currently requires assurance only for the BRSR Core KPIs. CSRD explicitly requires value chain (Scope 3) disclosure for material categories, while BRSR encourages but does not yet mandate it. In terms of climate metrics, both frameworks require Scope 1 and Scope 2 GHG emissions — so the underlying measurement work is transferable.

Building One System for Both Frameworks

For Indian companies facing both BRSR and CSRD obligations, the most efficient approach is building a single integrated ESG data system that collects the metrics required by both frameworks, rather than running two separate processes. The GHG Protocol-aligned carbon inventory needed for BRSR Core is also the foundation for CSRD's climate metrics. The materiality assessment required by CSRD can be structured to also address BRSR's principles. Csquare helps Indian companies build integrated ESG reporting systems that satisfy multiple framework requirements simultaneously, reducing duplication and cost.