The Comptroller and Auditor General of India (CAG) has begun integrating SEBI’s ESG framework—specifically the Business Responsibility and Sustainability Reporting (BRSR) criteria—into its audits of state-run companies. This marks a significant step toward mainstreaming ESG assessments within public-sector governance.
About the BRSR Framework
SEBI’s BRSR format is currently mandatory for the top 1,000 listed companies and captures data across nine ESG principles, covering environmental metrics, social responsibility indicators, and governance practices.
By applying these standards to public enterprises, CAG is effectively extending ESG scrutiny beyond the market-listed ecosystem.
What Has Been Announced
CAG is assessing 30 listed and 19 unlisted government-owned enterprises against SEBI’s BRSR indicators, which cover environmental performance, social responsibility, and governance practices. The evaluation is part of CAG’s broader effort to include sustainability parameters in formal audit procedures across the public sector.
Why This Matters
- Public Sector ESG Alignment: This is the first time ESG disclosure standards—originally designed for listed companies—are being applied to unlisted and state-run entities.
- Toward Standardised ESG Audits: Integrating BRSR into government audits sets a precedent for uniform sustainability assessments across India’s corporate and public landscape.
- Improved Transparency & Accountability: The move strengthens governance frameworks and signals India’s growing focus on ESG-led decision-making, investment assessments, and compliance readiness.
Next Steps
CAG is expected to release its consolidated findings within the next 4–5 months. The report will likely highlight gaps, strengths, and areas for improvement in how state-run entities manage and report their ESG performance.
What This Means for Organisations
For companies—listed or unlisted—this development reinforces India’s direction toward:
- More data-driven ESG evaluations
- Stronger emphasis on consistent sustainability reporting
- Greater harmonisation between public and private ESG expectations
Organisations should prepare for increased scrutiny across disclosures, governance conduct, and environmental and social metrics.
How EcoActive Can Help
EcoActive ESG equips Indian companies with sophisticated tools to embrace BRSR’s nuanced requirements. The platform offers:
Tailored reporting solutions
- Comprehensive data management
- Strategic analytics
- Up-to-date regulatory knowledge
- Streamlined reporting
- XBRL compatibility
- Integrated platform bringing together both ESG and financial reporting
- Built-in GHG calculator for emissions measurement
- Agentic AI for automated workflows and reporting
- Peer bench marking for performance comparison across industry groups
Ready to strengthen your BRSR reporting?
