Understanding BRSR, TCFD & CSRD: The Ultimate Compliance Guide for Indian Companies

In the past few years, sustainability and transparency have shifted from just some ideal attributes to essential business expectations. Indian organisations, whether large listed companies or fast-growing enterprises, now face increasing pressure to disclose how they manage environmental, social, and governance risks. At the centre of this shift are three major frameworks that many businesses keep hearing about but are not always sure how they differ: BRSR, TCFD, and CSRD.

If you are navigating BRSR compliance in India, TCFD compliance in India, or CSRD compliance in India, it can feel overwhelming at first. But once you break down what each framework means, things start becoming much clearer.

This blog will serve as a simple, practical, and complete BRSR TCFD CSRD guide for Indian companies that want to keep pace with Indian companies ESG regulations.

Understanding BRSR, TCFD & CSRD

Before comparing the three, it helps to get a quick understanding of what each framework aims to achieve. All three relate to sustainability disclosures, but they have different scopes and expectations.

1. BRSR (Business Responsibility and Sustainability Report)

BRSR is India’s mandatory sustainability reporting framework for the top listed companies by market capitalisation. It focuses on a company’s ESG (Environment, Social, and Governance) performance in a structured, standardised way.

Key highlights of BRSR:

• Mandatory for the top 1,000 listed companies in India
• Based on nine principles of the National Guidelines for Responsible Business Conduct (NGRBC)
• Focuses on measurable ESG data and policy-level disclosures
• Includes leadership indicators for deeper assessment
• Designed to increase transparency in Indian markets

2. TCFD (Task Force on Climate-related Financial Disclosures)

TCFD is a globally recognised framework for climate-related financial disclosures. In 2023, its monitoring role shifted to the International Sustainability Standards Board (ISSB), whose standards IFRS S2 for climate and IFRS S1 for general sustainability build directly on the TCFD pillars. While these ISSB standards form the new global baseline, reporting does not automatically shift to IFRS S1/S2 unless adopted by individual regulators.

Key highlights of TCFD disclosures:

• Builds directly on the former four TCFD pillars: Governance, Strategy, Risk Management, Metrics & Targets
• Provides the global baseline for climate-related financial disclosures
• Introduces more detailed and industry-specific requirements compared to TCFD
• Increasingly used by regulators and investors worldwide
• Relevant for Indian companies connected to global value chains or international investors

3. CSRD (Corporate Sustainability Reporting Directive)

CSRD is a comprehensive European Union regulation focused on sustainability reporting. Indian companies with EU links may need to comply.

Key highlights of CSRD:

• Applies to companies operating or listed in the EU (either having 250+ employees, €50 million net turnover, or €25 million total assets)
• Introduces highly detailed and standardised ESG disclosure rules
• Requires double materiality: financial + impact materiality
• Structured around the European Sustainability Reporting Standards (ESRS)
• Requires digital, audited, and externally verified reports
  

Comparison of BRSR, TCFD & CSRD

Before building your compliance strategy, it’s smart to compare all three frameworks side-by-side. Here is a simple, clear comparison.

Although these frameworks overlap in themes, each one focuses on a different depth, audience, and purpose. Indian companies should understand the distinctions so they can prioritise the right disclosures.

Compliance Guide for Indian Companies

As sustainability regulations evolve, companies in India must understand which framework applies to them and how to prepare for compliance. The good news is that all three frameworks share common themes such as governance, reporting, transparency, and risk assessment. However, the depth of work required varies.

• For BRSR compliance in India: Companies must build structured ESG data systems. Many organisations initially struggle with fragmented data or unclear roles. Establishing internal ownership, defining KPIs, and setting up year-round tracking systems helps reduce stress during reporting season.
• For TCFD compliance in India: Companies should map climate risks, perform scenario analysis, track emissions, and integrate findings into strategic planning. These disclosures are becoming a global expectation, even if not legally mandatory in India.
• For CSRD compliance in India: Companies with EU operations must prepare early. CSRD’s requirements are detailed and audited, which means businesses need strong governance, materiality assessments, stakeholder engagement, and robust data controls long before the reporting deadline arrives.

Key Steps to Build a Strong ESG Compliance Structure

A clear ESG foundation makes meeting BRSR, TCFD, and CSRD expectations far easier. Here’s what companies should prioritise:

• Establish an internal ESG governance team
• Conduct a materiality assessment to identify high-impact issues
• Build year-round ESG data-capturing systems
• Map climate risks and opportunities
• Set targets and develop action plans
• Review global guidelines and benchmark best practices
• Invest in training and awareness across departments
  

Why Choose KBS Certification

KBS Certification supports companies in navigating these evolving ESG and sustainability compliance requirements with clarity and confidence. With a presence in more than 60 countries, KBS Certification brings international insights and a practical understanding of how Indian businesses operate. We help organisations interpret complex frameworks like BRSR, TCFD, and CSRD in a way that feels manageable instead of overwhelming.

Our team assists companies with sustainability reporting, compliance readiness, training, and independent verification services. Whether you are mapping climate risks, preparing for BRSR disclosures, or building CSRD-aligned systems, KBS Certification provides structured guidance that fits your industry and operational reality.

What we offer:

• Tailored support aligned with Indian business environments
• Global expertise backed by strong technical teams
• End-to-end sustainability reporting and verification services
• Practical guidance, not theoretical instructions
• Long-term support as ESG expectations continue to evolve
  

FAQs

•  What is the purpose of BRSR for Indian companies?

BRSR ensures transparency in how companies manage ESG responsibilities and business conduct.

•  Is TCFD mandatory for companies in India?

No, but many global investors expect TCFD-aligned climate disclosures.

• Do Indian companies need CSRD compliance?

Indian companies operating in the EU or part of EU supply chains may require CSRD compliance.

• How does KBS Certification help with ESG reporting?

KBS Certification provides training, guidance, and structured support to simplify ESG reporting.

• Are BRSR, TCFD, and CSRD interconnected?

Yes, all three focus on sustainability disclosures but differ in scope and depth.

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