What is the difference between BRSR and ISSB?
- alisharoyhere
- Aug 28
- 3 min read
Businesses across the globe are held accountable not only for profits but also for their impact on the people and the planet. Transparency in corporate operations has become highly essential, driving organizations to disclose information on their environmental, social, and governance (ESG) practices. This has led to the adoption of formal reporting frameworks that help investors and stakeholders assess how responsible and sustainable your company really is.
Two such frameworks that have become a topic of discussion are the Business Responsibility and Sustainability Report (BRSR) and the International Sustainability Standards Board (ISSB). While both aim to improve sustainability disclosure, they are designed for different purposes and operate in different contexts.
What is a Business Responsibility and Sustainability Report (BRSR)?
The BRSR is an Indian reporting framework that is introduced by the Securities and Exchange Board of India (SEBI) to promote responsible business practices. It replaced the earlier Business Responsibility Report (BRR) to give a more detailed view of a company’s ESG performance.
Scope and Applicability
Mandatory for top listed companies: SEBI has made BRSR compulsory for the top 1,000 listed companies by market capitalization in India.
Focus on Indian market needs: It ensures that businesses align with national priorities such as environmental protection, social inclusion, and ethical governance.
Comprehensive disclosures: Companies are required to share structured data on emissions, waste management, energy use, employee welfare, diversity, and supply chain practices.
What is ISSB and Why Was It Formed?
The International Sustainability Standards Board (ISSB) was formed by the IFRS Foundation to develop global sustainability reporting standards. Its goal is to eliminate confusion caused by multiple ESG frameworks worldwide.
Features of ISSB Standards
Applicable to companies globally: ISSB standards are designed for international markets and investors.
Financial materiality focus: These standards emphasize how sustainability issues affect enterprise value and investor decisions.
Integration with IFRS accounting: This ensures that financial and sustainability reporting speak the same language for global comparability.
Key Differences Between BRSR and ISSB
1. Regulatory Status and Scope
BRSR: Indian regulation under SEBI; compulsory for top listed companies.
ISSB: Global framework; voluntary unless adopted by a specific jurisdiction.
2. Objective and Reporting Approach
BRSR: Focuses on comprehensive ESG performance, using a principle-based questionnaire that addresses national priorities such as social inclusion and environmental protection.
ISSB: Focuses on financial materiality, requiring companies to disclose how sustainability issues directly impact business value and investor confidence.
3. Audience and Stakeholder Alignment
BRSR: Designed for domestic regulators, policymakers, and local stakeholders, supporting India’s sustainable development goals.
ISSB: Geared toward global investors, analysts, and capital markets, ensuring comparability across countries.
4. Disclosure Requirements
BRSR:
Structured around nine principles of responsible business conduct.
Contains quantitative metrics (like energy consumed, emissions, water footprint) and qualitative disclosures (like policies, governance practices).
ISSB:
Built on IFRS-aligned principle-based standards (IFRS S1 and S2).
Requires entity-specific materiality assessments and forward-looking risk disclosures tied to enterprise value.
5. Integration with Global Frameworks
BRSR: It is India-specific, in spite of being aligned with global ESG trends such as GRI (Global Reporting Initiative).
ISSB: It is fully integrated with IFRS reporting, and ensures ESG information fits directly into global financial analysis.
Final Takeaway
Sustainability reporting is now a fundamental part of doing business responsibly. The business responsibility and sustainability report (BRSR) reflects India’s approach to ESG compliance, while ISSB standards create a global language for sustainable finance.
Think of BRSR as learning the regional compliance rules, and ISSB as mastering the international reporting language. Together, they empower businesses to meet both local and global expectations to thrive in a future where transparent reporting drives trust, investment, and long-term success.
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