BRSR vs. CSR: Understanding the Differences

CSR refers to company-led activities like healthcare, education and environmental support as mandated by the Ministry of Corporate Affairs. The actions are directed towards ensuring a positive outcome in society, which is beyond the profit earned by the company. Business Responsibility and Sustainability Report (BRSR) is a framework introduced by the Securities and Exchange Board of India (SEBI). It requires the top 1000 listed entities to disclose ESG-related performance in measurable terms. The aim here is better transparency and assistance in investment decisions. 

What is BRSR? 

BRSR is an ESG disclosure framework declared mandatory by SEBI for the top 1000 listed companies in India. Effective from fiscal year 2022-23, it replaces the earlier Business Responsibility Report (BRR) to shift the focus from basic compliance to comprehensive and data-driven sustainability reporting. 

BRSR requires companies to disclose performance across approximately 140 data points, with 98 mandatory and 42 voluntary. They are categorised into three key sections: General Disclosures, Management and Process Disclosures and Principle-Wise Disclosures for both qualitative and quantitative company data. 

The frameworks promote accountability, transparency and comparability by including measurable metrics of both company and value chain partners. It also encourages businesses to evaluate both positive and negative impacts of their operations for long-term and responsible growth. 

What is CSR?

Corporate Social Responsibility (CSR) is a business model where companies operate ethically. They focus on economic development and work to improve the quality of life of employees, communities, and the environment. CSR also promotes accountability via activities like philanthropy, environmental sustainability, ethical labour, and community volunteering.

In India, CSR is governed by the MCA under the Companies Act, 2013. CSR provisions apply to companies that meet any of the following criteria in the immediately preceding financial year: 

• Net worth: INR 500 crore or more 

• Turnover: INR 1000 crore or more 

• Net Profit: INR 5 crore or more 

Such companies are required to spend at least 2% of their average net profits (over the last three years) on CSR activities. 

Key Differences: BRSR vs CSR 

Regulatory Body and Legal Basis 

CSR falls under the MCA operating through Section 135 of the Companies Act, 2013. BRSR is primarily regulated by 34(2)(f) of the SEBI through its Listing Obligations and Disclosure Requirements Regulations, 2015. 

Legally, CSR has a spending mandate where it requires qualifying companies to allocate at least 2% of their average net profit toward activities listed under Schedule VII of the Companies Act. BRSR is a disclosure mandate that requires the top 1000 listed entities to report on their ESG performance in a comparable, structured and auditable format. 

Scope of Reporting 

BRSR

BRSR requires both qualitative and quantitative disclosures across three structured sections. 

• Section A covers general company information, including compliance. operations, and employees' details. 

• Section B includes management and process disclosures on governance, leadership and others. 

• Section C focuses on principle-wise ESG performance disclosures aligned with the nine NGRBC principles. 

Quantitative disclosures include energy consumption, GHG emissions, water usage, data privacy metrics and others. Qualitative disclosures cover governance structures, policies on ethics and anti-corruption, stakeholder engagement and value chain sustainability.  

CSR

CSR reporting also includes both qualitative and quantitative disclosures to provide a clear view of a company’s social and environmental impact. It helps track performance, state the outcomes, and improve transparency in CSR initiatives. 

Quantitative CSR reporting uses climate impact, employee satisfaction scores and social indicators to assess progress and benchmark performance. Qualitative CSR reporting includes testimonials, case studies, interviews and stakeholder stories that highlight the company’s real-world impact. 

Applicability and Compliance Threshold 

BRSR is mandated by the SEBI and applies to the top 1000 listed companies in India based on the market capitalisation. It is a mandatory disclosure requirement that is required to be reported annually. The applicability is not based on profitability but on listing status and size. Thus, it encompasses large and publicly listed entities. 

CSR is governed by the Companies Act, 2013 and applies to companies meeting specific financial criteria. With at least 2% of average net profit mandatory, its applicability depends on financial thresholds and applies to both listed and unlisted companies. 

Connection to ESG and Global Frameworks 

BRSR is India’s structured ESG disclosure framework based on NGRBC and aligned with leading global frameworks such as: 

• Global Reporting Initiative (GRI)

• Task Force on Climate-Related Financial Disclosures (TCFD)

• Sustainability Accounting Standards Board (SASB)

BRSR core had mandated third-party assurance for key ESG metrics, enhancing reliability for investors. The framework currently focuses on direct operations of companies while gradually expanding to include value chain (Scope 3) disclosures. It will enhance global comparability of sustainability data. 

CSR activities are aligned with global development agendas such as the United Nations Sustainable Development Goals (SDGs). ESG frameworks provide measurable indicators to assess outcomes, and reporting mechanisms like BRSR help translate these activities into standardised disclosures for stakeholders and investors. 

How CSR and BRSR Interact/Overlap

CSR and BRSR serve different purposes, yet they overlap at multiple levels. 

CSR is part of BRSR reporting: BRSR Section A, General Disclosures, requires companies to report on their CSR initiatives as part of the broader sustainability report. Thus, CSR activities are a subset of BRSR. 

Common sustainability foundation: CSR and BRSR promote responsible business conduct, but BRSR is a more comprehensive framework, built on the nine principles of the NGRBC. 

BRSR strengthens CSR accountability: BRSR demands quantitative KPIs on the outcomes of CSR activities, shifting the focus from expenditure to impact. 

Regulatory overlap: Companies that meet the financial thresholds under Section 135 of the Companies Act are frequently among the top 1,000 listed entities mandated to file BRSR. Integration of both obligations is a compliance necessity for these companies. 

Shared materiality focus: CSR and BRSR both expect companies to identify key sustainability areas relevant to their operations. BRSR connects community-level CSR activities with broader ESG risks, opportunities, and value chain impacts. 

Where CSR asks what a company gives back, BRSR asks how a company operates, governs, and discloses in its entirety. One is a spending commitment, and the other is a transparency obligation.

BRSR Compliance Timeline & Applicability

Key Takeaways

Both CSR and corporate sustainability are concerned with assisting businesses in operating in a way that allows them to be ethically profitable, never at the expense of others. CSR focuses on mandated or voluntary social spending and community initiatives, whereas BRSR is a structured reporting framework that discloses a company’s ESG performance. To simplify compliance, reporting and alignment, explore Oren. 

Oren helps organisations handle both, CSR obligations and BRSR requirements, by simplifying disclosures and improving data readiness. Simultaneously, we ensure alignment with India’s evolving sustainability reporting standards.