ESG Reporting, BRSR Compliance and Corporate Financial Performance in India: A Review of Recent Developments

Environmental, Social, and Governance (ESG) reporting has become an integral component of corporate governance and sustainable business practices, reflecting the increasing expectations of investors, regulators, and other stakeholders for transparent and responsible business conduct. In India, the introduction of the Business Responsibility and Sustainability Reporting (BRSR) framework by the Securities and Exchange Board of India (SEBI) has significantly strengthened the regulatory framework for sustainability disclosures, encouraging listed companies to integrate ESG principles into their business strategies and reporting practices. Against this backdrop, the present review examines recent developments in ESG reporting, BRSR compliance, and their relationship with corporate financial performance. The paper reviews contemporary literature on the evolution of ESG reporting at the global and national levels, the emergence of BRSR as India's principal sustainability reporting framework, and the growing role of corporate governance in improving disclosure quality and accountability. It further analyses empirical studies that explore the association between ESG performance and financial indicators such as profitability, market valuation, investor confidence, and long-term value creation. While many studies indicate a positive relationship between effective ESG practices and financial performance, others report mixed findings due to differences in industry characteristics, governance structures, regulatory environments, and measurement approaches. The review also identifies key challenges affecting the implementation of BRSR, including data quality, assurance mechanisms, greenwashing concerns, compliance costs, and limited ESG reporting capabilities among smaller firms. Furthermore, it highlights important research gaps related to sector-specific analyses, ESG assurance, artificial intelligence-enabled sustainability reporting, and the long-term impact of BRSR on corporate performance in India. The paper concludes that robust ESG reporting, supported by effective corporate governance and regulatory compliance, can enhance stakeholder trust, improve corporate reputation, and contribute to sustainable financial performance. The findings offer useful insights for researchers, policymakers, corporate managers, investors, and other stakeholders interested in advancing sustainable business practices in India.