The Conceptual Significance of Non-Financial Reporting in India: An Evolutionary Analysis from CSR to BRSR Core and the Net Zero Imperative

Abstract

The global corporate landscape is undergoing a profound transformation, marked by a decisive shift from a singular focus on shareholder value to a broader commitment to stakeholder capitalism. This paradigm change has elevated the importance of Non-Financial Reporting (NFR), which provides critical insights into a company’s environmental, social, and governance (ESG) performance. While NFR is a global phenomenon, the Indian context presents a unique and compelling case study, characterized by a regulatory evolution that is both rapid and prescriptive. This paper aims to conceptually analyze the significance and trajectory of NFR in India, tracing its path from the mandatory, but largely philanthropic, Corporate Social Responsibility (CSR) regime to the comprehensive, assurance-based Business Responsibility and Sustainability Reporting (BRSR) Core framework. Grounded in Stakeholder Theory and Legitimacy Theory, this conceptual analysis employs a historical-evolutionary approach to synthesize the interconnectedness of key frameworks, including CSR, the Global Reporting Initiative (GRI), BRSR, and the national climate imperative of Net Zero. The findings reveal that the Indian NFR landscape is distinguished by a unique regulatory push that actively drives convergence with global standards. The BRSR Core framework, with its explicit focus on quantitative climate metrics, such as carbon footprint disclosure, and its requirement for value chain assurance, positions India as a pioneering leader among emerging economies in mandating robust and verifiable sustainability disclosures. Ultimately, NFR in India is conceptualized not merely as a compliance exercise, but as a critical mechanism for enhancing corporate accountability, managing systemic risks, attracting global capital, and aligning the private sector with India’s ambitious national climate goals.

Keywords: Non-Financial Reporting (NFR), India, Business Responsibility and Sustainability Reporting (BRSR), ESG, Corporate Social Responsibility (CSR), Global Reporting Initiative (GRI), Carbon Footprint

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