The corporate reporting landscape in India is undergoing a major transformation as businesses increasingly focus on Environmental, Social, and Governance (ESG) factors. In 2025, ESG reporting is no longer just a voluntary initiative for large corporations but an essential part of how companies are evaluated by investors, lenders, regulators, and other stakeholders. The Securities and Exchange Board of India (SEBI) has already mandated Business Responsibility and Sustainability Reporting (BRSR) for the top 1000 listed companies. At the same time, unlisted entities, mid-sized firms, and startups with global ambitions are adopting ESG frameworks to enhance transparency, access to capital, and reputation. In this changing environment, chartered accountants have a significant role to play in helping businesses navigate ESG disclosures and integrate sustainability into their financial and operational reporting.
ESG reporting involves the measurement and communication of a company’s impact on the environment, its commitment to social responsibility, and the quality of its governance practices. These disclosures typically cover areas such as carbon emissions, water usage, waste management, employee well-being, diversity and inclusion, supply chain ethics, board independence, and anti-corruption measures. In 2025, ESG reporting is moving beyond generic statements to data-driven disclosures aligned with frameworks like the Global Reporting Initiative (GRI), the International Sustainability Standards Board (ISSB) standards, and SEBI’s BRSR Core framework. This shift requires companies to collect accurate data, apply consistent measurement approaches, and provide verifiable information to stakeholders.
Chartered accountants are well positioned to assist businesses at every stage of this journey. Traditionally, CAs have been trusted advisors in areas of financial reporting, assurance, and compliance. These skills translate well into the ESG space, where data integrity, consistency, and transparency are key. CAs can help businesses design ESG data collection systems, map internal controls around sustainability reporting, and ensure that disclosures are aligned with applicable frameworks. They can also support in integrating ESG metrics with financial statements where required, offering a holistic view of a company’s performance to stakeholders.
Another emerging area of opportunity is ESG assurance. As investors, regulators, and other users of reports demand reliable ESG data, independent assurance by qualified professionals is gaining importance. Chartered accountants can extend their assurance services to ESG reporting, applying their expertise in audit methodologies, risk assessment, and internal controls to provide confidence in sustainability disclosures. The ICAI and global standard-setters are actively working on frameworks and guidance to support professionals in this field, making it an opportune time for CAs to build capacity in ESG assurance.
Beyond technical support, CAs can act as strategic advisors in helping companies understand the business implications of ESG performance. Good ESG practices are increasingly linked to better credit ratings, access to green financing, lower insurance costs, and stronger investor interest. CAs can help businesses identify ESG risks and opportunities, align ESG goals with business strategies, and measure the financial impact of sustainability initiatives. This expands the traditional role of the CA from compliance and reporting to value creation.
However, success in ESG advisory and assurance requires upskilling. ESG reporting involves subject matter knowledge that goes beyond financial metrics. CAs looking to contribute in this area must familiarize themselves with ESG standards, sustainability metrics, sector-specific issues, and stakeholder expectations. Participation in ICAI programs, global ESG certification courses, and collaboration with multidisciplinary teams can help bridge this knowledge gap.
As ESG reporting becomes mainstream in India, chartered accountants have a unique opportunity to lead the transition to responsible and transparent business practices. By leveraging their strengths in reporting, assurance, and ethics, and by embracing new knowledge and technologies, CAs can play a key role in building trust in sustainability disclosures and supporting businesses on their ESG journey.