ESG Reporting in 2026 – Practical Tips for Quality Data, Transparency and Investor Trust
- sanjan ganguly
- 4 days ago
- 7 min read
Updated: 5 hours ago
Table Of Contents
In 2026, corporate sustainability in India is hitting a pivotal moment. ESG reporting is no longer a “nice-to-have” or just a CSR checkbox; it’s a core business requirement. SEBI’s BRSR Core framework now mandates reporting for the top 250 listed companies, and this is only the beginning. Companies must collect, manage, and report data across their entire value chain, including suppliers and downstream partners contributing 2% or more to purchases or sales. This change signals a new reality: high-quality ESG reporting is now as strategic as financial reporting, influencing investor confidence, regulatory compliance, and long-term business resilience.
Recent studies show that Indian companies with robust ESG disclosures see 15–20% higher investor engagement and easier access to green finance. In other words, 2026 is the year when businesses can no longer treat sustainability as an afterthought; they must prioritize data accuracy, transparency, and trust, not just tick compliance boxes.
Understanding ESG Reporting in 2026
ESG reporting today is so much more than being a collection of numbers related to carbon emissions or workforce diversity. It’s a holistic, informative look at how a company is executing on environmental, social and governance matters, and it is intended for investors, regulators and other stakeholders who have a vested interest in the company.
In India, ESG reporting in 2026 is regulated by SEBI’s BRSR Core framework, which did not cover Governance-related indicators, and companies are required to report on energy consumed, water use, emissions (GHG), and social activities. Reporting is no longer limited to the company itself, with value chains now in scope and suppliers and partners who account for 2% or more of purchases or sales required to meet minimum sustainability standards.
What distinguishes ESG disclosure is not only the reporting of hard numbers but how those numbers are framed in context. Companies have to disclose their strategy, how they’re governed and the ways in which they approach material issues, demonstrating not only what they report but why those matters are important. This equilibrium is the one that is the foundation of credibility, transparency and trust with investors and the markets.
Key Indian ESG Reporting Requirements
BRSR Core Reporting: Top 250 listed companies are required to report under SEBI’s BRSR Core framework for FY 2025–26, along with the optional previous year’s value chain data.
Third-Party Assurance: Starting FY 2026–27, third-party assurance is required to begin with for the top 500 companies and later the top 1,000 listed entities.
CSR Compliance: CSR obligations as per the Companies Act 2013 are to be met, with corporate entities having to invest 2% of their average net profits in social causes.
Supply-Chain Disclosures: Businesses have to disclose the suppliers or partners that contribute 2% or more of the purchase or sale value, improving transparency across the chain.
Those demands make one thing abundantly clear: ESG reporting is no longer a “nice to have.” It is a matter of strategic necessity that impacts financial inclusion, regulatory position, and corporate reputation.
Practical Tips for Quality ESG Data
ESG data of high quality forms the base for credible reporting. Without solid, verifiable information, transparency suffers, and trust of investors erodes. Just as solid financial reporting depends on systems, discipline and accountability, strong ESG disclosures do too.
1. Establish Centralized, Audit-Ready Systems
Disconnected spreadsheets no longer work. All ESG reporting relies on a centralized, cloud-based solution that consolidates data from finance, operations, HR, procurement and the supply chain.
These Indian companies, like Infosys and TCS, track their Scope 1–3 emissions, as well as energy use and water consumption, on an ongoing basis using internal dashboards.
Centralization helps with version control, de-duplication, argues for third-party assurance and sends a serious signal to investors and regulators.
2. Standardize Data Collection Processes
Quality data begins with clarity. Companies must spell out the data collected, its sources and frequency of updates for environmental, social and governance metrics.
Written procedures and basic checklists help ensure that every data point, from utility bills to supplier certifications, has a clear owner and source. This consistency enhances comparability and alleviates pressure in the reporting phase.
3. Leverage Technology and Automation
Technology can also help address the problem of inaccuracy and inefficiency with ESG reporting. Sensors on the Internet of Things allow for real-time monitoring of energy and water use, as well as artificial intelligence tools to flag anomalies in emissions or workforce data early.
Automation is already helping companies like Reliance Industries and Marico minimize errors, shorten report-timeframes, and free teams to work on insights rather than spend their time doing data entry.
4. Ensure Data Is Audit-Ready from Day One
With third-party assurance becoming mandatory, audit readiness must be built in from the start. Every metric should link to a source document, follow internal controls similar to financial reporting, and remain fully traceable across teams.
This discipline meets SEBI requirements and strengthens credibility with investors, lenders, and partners who depend on ESG data to assess long-term risk.
Enhancing Transparency and Investor Trust
The best ESG data in the world is worthless if it isn’t communicated clearly, contextually and honestly. Transparency is the magic wand that transforms reporting into trust.
1. Align With Global Reporting Standards
As Indian firms gain international attention, ESG disclosures will have to meet global standards. Data mapped to frameworks such as GRI, ISSB, and ESRS enhances comparability and assurance. It indicates that corporate ESG reporting is standardized, comparable and globally benchmarked.
2. Conduct Double Materiality Assessments
Double materiality views ESG from two angles: how sustainability factors have an effect on the business and what impact the business has on society and the environment.
It’s reporting that keeps another focus on what matters. For instance, water usage is a significant concern in India for textile and FMCG companies, whereas emissions and energy intensity matter more for heavy industry.
3. Seek Third-Party Verification
Independent assurance strengthens confidence. Third-party verification instils confidence for investors and regulators in the validity of ESG disclosures, mitigates greenwashing risk and makes companies future-proof with forthcoming mandatory assurance requirements.
4. Balance Numbers With Narrative
Everything is relative, and metrics such as emissions, energy use or diversity ratios require context. Robust ESG reporting articulates the rationale for initiatives, governance and oversight of progress toward targets as well as obstacles encountered on the journey.
Investors treasure this full picture far more than the isolated numbers.
5. Be Honest About Challenges
Recognizing gaps only builds credibility for companies. Issues such as a lack of supply chain data, varying vendor reporting or early-stage systems are general ESG challenges faced by companies in India. And openly addressing them is a way of building trust; it’s a way of indicating long-term commitment.
6. Embed ESG Into Corporate Governance
True transparency starts at the top. Companies should place ESG at the board level by forming ESG committees, linking leadership incentives to sustainability outcomes, and integrating ESG into core business strategy.
When governance reflects commitment, investors take sustainability seriously too.
Common ESG Reporting Challenges and How to Solve Them
As ESG scrutiny grows, Indian companies find themselves facing similar, very practical hurdles, many of which are discussed in detail in our guide on top challenges in ESG reporting and how to overcome them. The good news is that all of these can be overcome with the right strategy.
Fragmented data sources ESG data fragmented across teams hinders reporting and leads to errors. Centralized, cloud-based ESG platforms provide a single source of truth and increase audit readiness.
Inconsistent KPIs and definitions Metrics not normalized between teams: less clear. Compliance with global standards such as GRI, ISSB and ESRS results in consistency, comparability and confidence from investors.
Supply chain reporting gapsValue-chain disclosures are complex. Basic supplier templates, clear guidance and phased expectations facilitate getting vendors on board.
Investor skepticism and greenwashing risksUnverified claims raise doubts. An independent third-party opinion and transparent reporting create credibility and confidence.
Data accuracy issuesManual processes invite errors. AI and IoT automate data collection to achieve more accurate and reliable results.
Addressing these challenges is essential for ESG reporting that can hold water, as it does to investors and regulators alike.
Conclusion
In 2026, ESG reporting in India is no longer optional or a tick-box exercise. It has become a strategic lever for transparency, investor confidence, and long-term business resilience. Companies that invest in high-quality data, clear disclosures, and strong governance are better positioned to access capital, strengthen their reputation, and stay ahead of regulatory expectations.
This journey starts with getting the fundamentals right: centralized systems, standardized processes, smart use of technology, and independent verification. Aligning with global frameworks and embedding ESG into board-level decision-making ensures that sustainability is treated as a business priority, not an afterthought.
For Indian companies, ESG reporting is an opportunity, not just an obligation. It is a chance to demonstrate credibility, attract long-term investors, and show leadership in responsible growth. Those who act early and thoughtfully will not only comply with SEBI regulations but also set the benchmark for what future-ready, trusted businesses in India look like.
Ready to strengthen your ESG reporting for 2026? Connect with Greenmyna to build credible, audit-ready ESG systems that go beyond compliance and create long-term value.
FAQs
1. What is ESG reporting 2026 in India?
It is the required mandatory disclosure template for publicly listed companies in India mandated by SEBI BRSR Core(Strategic) data, Upstream and Downstream value chain information to encourage transparency and sustainability.
2. What are ESG reporting best practices?
Establish centralized data systems, automatically collect them with AI/IoT, and align with global standards, double materiality diagnostic analysis, and third-party verification.
3. How can Indian companies ensure ESG data quality?
Through the use of standard checklists, audit-prepared documentation, cloud-based frameworks and integration with departments throughout the entire business.
4. How does ESG reporting enhance investor trust?
Through transparency, credible third-party assurance, honest disclosure of challenges, and alignment with global reporting standards.
5. What is ESG governance in corporate reporting?
It is the integration of ESG strategy into board-level oversight, executive accountability, and linking ESG KPIs to performance metrics.
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