The two-phase approach aims to enhance transparency for investors and lenders while aligning Indian corporate sector disclosures with established global standards
The Institute for Energy Economics and Financial Analysis (IEEFA) has put forward a two-stage roadmap designed to integrate climate transition planning into the Securities and Exchange Board of India’s (SEBI) Business Responsibility and Sustainability Reporting (BRSR) framework. The proposal is detailed in IEEFA’s newly published report, Strengthening BRSR for climate transition plan disclosures in India. The recommended phased strategy is intended to improve transparency for investors and lenders while bringing climate-related disclosures by Indian companies into closer alignment with well-established international reporting standards.
As India’s sustainability disclosure regime continues to evolve and listed businesses prepare for increasingly comprehensive climate reporting requirements, the recommendations outlined in the report are intended to provide greater clarity for providers of capital, including investors and financial institutions. At the same time, the proposed measures seek to harmonise Indian corporate reporting practices with globally recognised frameworks, including the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards and the Transition Plan Taskforce (TPT) framework.
According to the report, the proposed framework restructures the disclosures that already exist within the BRSR system while also introducing a set of priority indicators intended to address shortcomings in current climate transition planning disclosures.
Under the first phase of the roadmap, IEEFA recommends introducing a Transition Plan Snapshot Disclosure. This would serve as a structured summary that maps existing BRSR disclosures against IEEFA’s transition plan assessment framework. The approach is designed to offer investors a transparent and comparable assessment of a company’s preparedness for the transition while avoiding any immediate increase in regulatory compliance obligations.
The second phase proposes the inclusion of 23 priority metrics, to be introduced in two separate batches. These indicators focus on areas such as incorporating net-zero targets into business strategy, undertaking scenario analysis, directing capital toward transition initiatives, reporting Scope 3 emissions, engaging value chains on climate issues, and planning for a just transition. The first batch, comprising 13 of the total 23 metrics, covers information that is either already available among large companies or is closely connected to existing corporate budgeting and strategic planning processes. The remaining batch includes metrics that build upon the first phase and require companies to develop additional internal capabilities before implementation.
IEEFA recommends beginning Phase 1 with companies operating in high-emitting industries that are included among India’s top 500 listed firms, before gradually extending the requirement to the top 1,000 listed companies. Likewise, implementation of Phase 2 should initially apply to the top 500 listed entities and later be expanded progressively to include the top 1,000. The organisation’s assessment indicates that although some leading Indian businesses have voluntarily started reporting elements of climate transition planning, most corporate disclosures remain fragmented, primarily focused on historical information, and insufficiently integrated with financial planning.
“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 staged implementation of climate transition planning disclosures is expected to provide more decision-useful information for investors and other capital providers, strengthen the development of sustainable finance, and help improve alignment with internationally recognised climate objectives.
The views and opinions expressed in this article are the author’s own, and do not necessarily reflect those held by pv magazine.
Originally reported by pv magazine India on Jul 21, 2026.
