ESG Reporting, BRSR and Green Claims Without Legal Risk

Environmental, social and governance reporting has moved from voluntary brochures to regulated disclosure. SEBI requires the top 1,000 listed companies by market capitalisation to file a Business Responsibility and Sustainability Report as part of their annual report, and has introduced BRSR Core, a set of key indicators that the largest companies must have independently assessed or assured, phased in over several years and revised in 2025. Large buyers increasingly ask their suppliers for ESG data, and some value chain disclosures are being phased in. At the same time, the Central Consumer Protection Authority's 2024 guidelines on greenwashing make vague or unsupported environmental claims in advertising a legal risk.

ESG reporting is often treated as a sustainability team's task, but its foundation is legal. The environmental indicators in BRSR, such as emissions, water use, waste and compliance, must be consistent with the company's consents, EC conditions, returns and EPR filings. A disclosure that does not match the regulatory record invites questions from regulators, investors and litigants. This page explains how we support companies on BRSR, value chain requests and green claims, from the legal side.

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ESG legal support at a glance

BRSR and BRSR Core

SEBI's BRSR framework requires listed companies in the top 1,000 by market capitalisation to report on their performance against nine principles of responsible business conduct, including environmental principles on resource use, emissions, waste and biodiversity. BRSR Core is a smaller set of key performance indicators, covering areas such as greenhouse gas emissions, water, energy, waste, and some social indicators, for which SEBI requires reasonable assessment or assurance by an independent provider, phased in from the largest companies to a wider group over successive years. In 2025, SEBI revised aspects of the framework, including allowing assessment as an alternative to assurance and adjusting the timeline and approach for value chain disclosures.

For the environmental indicators, the data usually comes from the same sources as regulatory filings: consent applications, monitoring reports, environmental statements, hazardous waste returns, EPR returns and groundwater meter readings. Where the BRSR figure differs from the regulatory filing, the assessor or assurer will ask why, and so may a regulator or a litigant. We review the environmental sections against the regulatory record and help resolve differences before filing.

Value chain requests from buyers

Large companies, especially exporters and listed companies with value chain reporting, increasingly send ESG questionnaires to suppliers. These ask about consents, pollution incidents, waste handling, emissions, water use, child labour and other matters, and often require the supplier to sign a code of conduct or contractual warranties. Suppliers sometimes answer quickly, without checking, and sign warranties they cannot meet.

A careful response answers accurately, attaches evidence where available, explains gaps honestly with plans to fix them, and avoids open-ended warranties. Where a code of conduct requires compliance with "all applicable environmental laws", the supplier should be confident of its own compliance before signing, because a breach can give the buyer a right to terminate or claim damages. A compliance audit is often the right first step. See environmental compliance audit.

Greenwashing and green claims

In October 2024, the Central Consumer Protection Authority issued the Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024 under the Consumer Protection Act, 2019. The guidelines require environmental claims to be accurate, substantiated and clear. Generic terms such as "green", "eco-friendly", "eco-conscious", "sustainable", "natural" or "pure" must be qualified and backed by evidence, and claims about the whole product should not be made on the basis of a single attribute. Claims based on offsets or future goals must be disclosed as such. Comparative claims must be verifiable.

Misleading claims can lead to action by the CCPA, including directions to withdraw or modify advertisements and penalties under the Consumer Protection Act, as well as complaints by consumers and competitors. Before a product launch or campaign, have the claims reviewed: what exactly is claimed, what evidence supports it, whether the qualification is clear, and whether the claim is consistent with the company's regulatory record. A claim of "zero liquid discharge" from a unit whose consent does not reflect ZLD, for example, is a risk.

How we support ESG work

Carbon neutral and net zero claims

Claims that a product, company or event is "carbon neutral" or "net zero" attract particular scrutiny worldwide and under the CCPA guidelines. Such claims usually rely on a combination of emission reductions and offsets. If offsets are used, the claim should say so, identify the type of offsets, and avoid implying that the product itself has no emissions. Future targets, such as "net zero by 2040", should be presented as goals, with the plan behind them, rather than as achievements. Companies participating in the Carbon Credit Trading Scheme should also ensure that their public claims are consistent with their obligations and filings under the scheme. See carbon credits.

ESG due diligence for investors

Private equity investors, lenders and acquirers increasingly run ESG due diligence before investing. On the environmental side, the most useful findings usually concern regulatory compliance: whether permissions are valid, whether the company has had notices or closures, whether there are unaddressed EC conditions, EPR shortfalls, groundwater issues or contamination risks. These translate directly into legal and financial risk. We carry out the environmental part of ESG due diligence and help translate findings into investment terms and an action plan. See environmental due diligence.

Time and typical cost

Our fees are agreed in writing at the start, stage by stage. They are not linked to the outcome.

Green claim words and what they need

Documents usually needed

Laws that apply

How we work

We are a litigation and advisory practice led by Advocate BK Singh, with offices in Dwarka (New Delhi) and Vaishali (Ghaziabad). This is what you can expect:

• Legal lens on ESG data: consistent with your filings.
• Careful buyer responses: accurate, without open-ended warranties.
• Green claims reviewed: before launch, not after a complaint.
• Due diligence for investors: focused on real risk.
• Written fee terms: agreed stage by stage, never linked to the outcome.

Mistakes we see in ESG work