The Institute for Energy Economics and Financial Analysis (IEEFA) has proposed a two-phase roadmap to embed climate transition planning in the Securities and Exchange Board of India’s (SEBI) Business Responsibility and Sustainability Reporting (BRSR) framework. The roadmap is laid out in IEEFA’s latest release, titled Strengthening BRSR for climate transition plan disclosures in India.
As India’s sustainability reporting framework matures and listed companies prepare for more rigorous climate disclosures, the note’s recommendations aim to enhance transparency for capital providers such as investors and lenders while aligning Indian corporate disclosures with global standards such as the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards and the Transition Plan Taskforce (TPT) framework.
The document outlines a strategy that reorganises existing BRSR disclosures and introduces priority metrics to address current gaps in transition planning.
Phase 1 of the proposed roadmap introduces a Transition Plan Snapshot Disclosure, which is a structured summary document aligning existing BRSR data with IEEFA’s transition plan assessment framework. This provides investors with a clear, comparable view of corporate transition readiness without adding immediate compliance burdens.
Phase 2 adds 23 priority metrics in two batches, focusing on areas like net-zero target integration, scenario analysis, capital allocation to transition levers, Scope 3 emissions, value-chain climate engagement, and just transition planning. The first batch (13 of the 23 metrics) captures items that are either already available with large companies or are tightly linked to the corporate budgeting and strategy cycle. The second batch covers metrics that build on the foundation set by Batch 1 and require additional internal capacity.
IEEFA suggests starting the implementation of Phase 1 with companies in high-emitting sectors among the top 500 listed companies and progressively extending the requirement to the top 1,000 listed entities. Similarly, Phase 2 should begin with the top 500 listed entities before being gradually expanded to cover the top 1,000 listed entities. Its analysis shows that while leading Indian companies are voluntarily disclosing elements of transition planning, the majority of corporate reporting remains fragmented, backward-looking, and lacking financial integration.
“The two-phase approach aligns domestic corporate reporting with India’s efforts to meet its updated Nationally Determined Contribution. This approach also ensures that Indian companies remain competitive in securing global investment,” says report author Shantanu Srivastava, Research Lead for Sustainable Finance and Climate Risk, South Asia, IEEFA.
“Structured disclosures are critical to mobilising private capital, as India requires USD22.7 trillion (INR2,000 lakh crore) investment to achieve its 2070 net-zero goal,” says Tanya Rana, Energy Analyst, South Asia, IEEFA, and co-author of the report.
The phased adoption of transition planning disclosures is expected to improve decision-useful information for capital providers, support the growth of sustainable finance, and foster alignment with global climate goals.
