Joint research by Kerala University and the Indian Institute of Forest Management, Bhopal, which analyzed how Indian companies are adapting to the mandatory Business Responsibility and Sustainability Reporting (BRSR) regime, found that executives of leading companies support the integration of Environmental, Social and Governance (ESG). However, they continue to face challenges due to the absence of industry-specific reporting frameworks and high implementation costs.
The report, published in the international journal ‘Corporate Social Responsibility and Environmental Management’, draws on in-depth interviews with executives from the banking, manufacturing and service sectors.
The study’s findings indicate that banking and financial institutions lead the corporate environment in compliance and reporting quality, although they struggle to measure environmental impact indicators. Manufacturing firms that have taken the lead in actually implementing environmental initiatives have faced significant challenges in translating these efforts into standardized reports. The service sector proved to be the most problematic when dealing with issues of adapting the framework.
Worry
Executives from several Indian firms acknowledged strong enthusiasm for ESG integration. However, many expressed uncertainty about the short-term financial returns. The study also noted widespread concern about the high upfront investment in renewable energy, waste management systems, electrification and other sustainability projects that require break-even periods of several years.
Regardless of these challenges, companies argued that ESG compliance is increasingly important to attract global investors. While international investors actively seek out ESG-linked Indian firms, domestic retail investors remain largely indifferent, the study said.
According to principal investigator Biju AV, Associate Professor, Department of Commerce, University of Kerala, the research team suggested the need for an “Emerging Economy ESG Implementation Framework” that takes into account sector-specific realities in line with the country’s diverse industrial landscape.
The current one-size-fits-all BRSR framework, the researchers believe, does not adequately address the unique operational contexts of different sectors.
Ambili Jayachandran, Department of Commerce, Kerala University, and Aghila Sasidharan, India Institute of Forest Management, also collaborated on the study.
Published – 12 Dec 2025 20:37 IST
