SEBI’s Business Responsibility and Sustainability Report (BRSR) framework was updated for FY2025-26 with several material changes to water, energy, and biodiversity disclosures. This guide summarises the changes that affect water reporting and provides a preparation checklist.

What changed in water disclosures

The 2025-26 update introduces three key changes to water reporting under Principle 6 (Environment):

1. Source-level quality data required: Previously, companies reported total water withdrawal volume. The updated framework requires disclosure of the quality parameters of water at the source—conductivity, TDS, and key contamination indicators—not just volume.

2. Water stress mapping mandatory: Companies with operations in districts listed in the Central Water Commission’s stressed-basin list must now disclose whether their facilities fall in water-stressed areas and, if so, what mitigation measures are in place.

3. Positive impact disclosure encouraged: The updated framework adds a voluntary-but-scored section for water stewardship activities that create positive impact beyond the facility boundary—recharge, community water programmes, watershed restoration. Companies with verified positive impact data will be differentiated in ESG ratings.

Energy reporting changes

Scope 3 emissions reporting has moved from voluntary to mandatory for the top 1,000 listed companies. This affects water-intensive industries significantly, as water treatment and pumping account for a meaningful fraction of Scope 3 energy emissions in manufacturing.

Preparation checklist

For FY2025-26 BRSR: (1) Commission a water audit to establish source quality baselines; (2) Check whether any facility falls in a water-stressed district using the CWC mapping tool; (3) Document any water stewardship programmes with third-party verification; (4) Ensure your ETP/STP operators are capturing the data fields now required for discharge reporting.

The strategic opportunity

Companies that treat BRSR as a compliance obligation will spend money and gain nothing. Companies that treat it as a strategic disclosure will find that verified water stewardship programmes—with the data infrastructure to support them—differentiate meaningfully with ESG rating agencies, institutional investors, and procurement teams at global companies that require supplier ESG disclosures.