ESG Reporting Trends for 2024: What Businesses Need to Know
ESG reporting has shifted from voluntary practice to regulatory mandate. Here's how the landscape is evolving in India and what your business needs to do.
Environmental, Social, and Governance (ESG) reporting has moved from a voluntary practice to a business imperative. As we move through 2024, several key trends are reshaping the ESG landscape for Indian businesses — both listed companies and those in their supply chains.
Regulatory Developments in India
SEBI's Business Responsibility and Sustainability Report (BRSR) requirements continue to evolve. Key developments include an extended scope requiring listed companies to report on their value chain partners, enhanced climate-related financial disclosures aligned with TCFD, and standardised metrics that allow for easier year-on-year comparison and investor benchmarking.
Global Standards Convergence
The convergence of global ESG frameworks is accelerating. ISSB standards are gaining adoption across major economies. TCFD recommendations are becoming mandatory in several jurisdictions. GRI standards have been updated for better alignment with financial reporting norms. Indian companies with international investors or supply chain exposure are increasingly expected to comply with more than just BRSR.
Technology Is Transforming ESG Reporting
AI-powered data collection is reducing the manual burden of ESG data gathering. Blockchain is being used for supply chain transparency and emissions tracking. Real-time monitoring capabilities are enabling quarterly or even monthly ESG dashboards — moving beyond the traditional annual report cycle. Third-party data verification and assurance is growing rapidly as investors demand greater confidence in reported numbers.
Five Trends to Watch Closely
Climate Disclosures: Enhanced, quantified climate risk disclosures aligned with TCFD are becoming standard. Scope 3 Emissions: Value chain emissions are increasingly in scope for large companies. Social Metrics: Diversity, equity, and inclusion data is moving from narrative to numerical. Assurance: Third-party verification of ESG data is shifting from optional to expected. Integration: ESG performance is being embedded into financial reporting and board-level KPIs.
How to Prepare
Assess your current data collection capabilities against BRSR requirements. Identify gaps in Scope 1, 2, and 3 emissions measurement. Engage your supply chain partners early on data sharing. Consider voluntary adoption of ISSB or GRI standards to future-proof your reporting. Seek professional guidance on materiality assessments — determining which ESG issues are most relevant to your stakeholders and business model.