India climate disclosures lag as investors demand transition detail: IEEFA

IEEFA says BRSR underplays supply-chain, customer, and workforce transition risks despite stronger social indicators.

India’s corporate climate disclosure framework risks falling short of global investor expectations as transition planning becomes central to capital allocation decisions, according to an assessment by the Institute for Energy Economics and Financial Analysis (IEEFA).

IEEFA’s analysis compares India’s Business Responsibility and Sustainability Reporting (BRSR) framework with the International Sustainability Standards Board’s climate standard, ISSB S2, and found that whilst BRSR adopts a broader ESG approach, it lacks several core elements required for credible climate transition planning.

These include mandatory scenario analysis, clear links between greenhouse gas targets and transition levers, climate-specific governance disclosures, and funding strategies for transition plans.

The assessment noted that ISSB S2 provides more detailed, climate-focused guidance, including requirements for scenario analysis, disclosure of transition plans, and the expected financial impacts of climate risks and opportunities.

By contrast, BRSR focuses more heavily on high-level ESG indicators and social metrics, with limited alignment to the needs of climate transition planning.

IEEFA stated that BRSR provides stronger, measurable indicators for social and community engagement compared to ISSB, but underdevelops climate-related stakeholder dependencies, such as supply chains, customer exposure, and workforce transition risks.

As a result, disclosures under BRSR may not be sufficiently decision-useful for investors assessing transition risk and long-term resilience.