ESG Audit Services
Independent Assurance on Sustainability Disclosures for Indian Companies
BRSR Core reasonable assurance under ISAE 3000 (Revised) and ISAE 3410 — engagement planning, controls evaluation, substantive testing, site verification, analytical review and formal assurance conclusion.
Overview
What Is an ESG Audit and How Does It Work Under Indian Regulations?
The credibility of any ESG disclosure ultimately rests on whether it has been independently verified. Companies can make ambitious sustainability claims, publish colourful sustainability reports, and announce net-zero targets — but without independent audit and assurance, stakeholders have no way to distinguish genuine performance from greenwashing. This is precisely why SEBI introduced the BRSR Core assurance mandate: to ensure that India's ESG disclosures are backed by the same level of independent scrutiny that financial statements have always received.
N D Savla & Associates provides ESG audit and assurance services for Indian companies subject to SEBI's BRSR assurance requirements, as well as companies seeking voluntary assurance to enhance stakeholder confidence. Our chartered accountants conduct ESG audits using established assurance standards — ISAE 3000 (Revised) and ISAE 3410 — applying the same independence, objectivity, and professional scepticism that characterise our financial audit practice. We work across the full spectrum of ESG services, providing integrated support from ESG accounting through to assurance.
Our approach to ESG audit is grounded in substance, not procedure. We do not simply tick boxes against a checklist. We understand the science behind environmental metrics, the social context behind workforce data, and the governance principles behind boardroom disclosures. This substantive understanding allows us to identify genuine risks, ask the right questions, and provide assurance opinions that stakeholders can rely on.
In India, ESG audit requirements are driven by SEBI's BRSR assurance mandate, issued through SEBI circular dated July 2023, which requires the top 150 listed companies (by market capitalisation) to obtain reasonable assurance on BRSR Core parameters. The Securities and Exchange Board of India is progressively expanding this requirement to a broader set of listed companies.
The assurance engagement follows established international standards — primarily the International Standard on Assurance Engagements 3000 (Revised), which provides the overarching framework for non-financial assurance, and ISAE 3410, which specifically addresses greenhouse gas emissions assurance. The assurance provider plans the engagement, performs risk assessment procedures, gathers audit evidence through inspection, observation, inquiry, and analytical procedures, evaluates the evidence, and forms a conclusion on whether the ESG disclosures are free from material misstatement.
SEBI's mandate specifically requires reasonable assurance — the higher of the two assurance levels — for BRSR Core parameters. Reasonable assurance involves extensive audit procedures, direct testing of underlying data and calculations, evaluation of internal controls over ESG data, and results in a positive assurance conclusion. This is a significantly more rigorous engagement than limited assurance, which relies more heavily on inquiry and analytical procedures and provides a lower level of confidence.
Who It Applies To
Who Needs ESG Audit Services in India?
Top Listed Companies Under SEBI BRSR Core Mandate
Companies in the top 150 by market capitalisation are currently required to obtain reasonable assurance on BRSR Core parameters. This requirement is being expanded to the top 250 and eventually to all companies subject to the BRSR mandate. These companies need qualified assurance providers who understand both the technical ESG metrics and the assurance methodology required by SEBI.
Companies Seeking Voluntary ESG Assurance
Listed companies outside the current mandatory scope, as well as unlisted companies with institutional investors or ESG-conscious customers, increasingly seek voluntary ESG assurance to enhance credibility. Voluntary assurance demonstrates a commitment to transparency and positions the company favourably with rating agencies and investors. Our firm provides voluntary assurance engagements tailored to the company's specific reporting framework and stakeholder expectations, drawing on our broader ESG assurance and certification capabilities.
Companies with ESG-Linked Financial Instruments
Companies that have issued green bonds, sustainability-linked bonds, or sustainability-linked loans may be contractually required to obtain independent verification of their ESG performance against specified targets. Failure to meet verified ESG targets can trigger financial consequences — coupon step-ups for sustainability-linked bonds, or covenant breaches for sustainability-linked loans. Our firm provides targeted assurance on the specific ESG metrics referenced in financial instrument documentation.
Multinational Subsidiaries Reporting to Global Parents
Indian subsidiaries of multinational companies are often required to provide audited ESG data as part of the parent company's global sustainability report. The assurance standards and scope may be specified by the parent company or its global auditor. Our firm coordinates with international assurance networks to ensure that the Indian subsidiary's ESG audit meets the parent company's requirements while also satisfying Indian regulatory obligations. We also support companies through the broader role of professionals in ESG framework.
How It Evolved
How Has ESG Audit Practice Evolved in India?
Pre-BRSR — No Formal ESG Assurance Framework
Before SEBI's BRSR mandate, ESG assurance in India was entirely voluntary. A small number of large listed companies — particularly those with global investor bases — obtained voluntary assurance on their sustainability reports, typically following GRI Standards. The assurance was usually limited assurance, not reasonable assurance, and was provided by a mix of audit firms, sustainability consultancies, and specialised assurance providers. There was no standardised framework, no regulatory oversight, and limited comparability between assurance reports.
The BRSR Era — Standardised Disclosure Without Assurance (2022–2023)
When SEBI introduced the BRSR in 2021 and made it mandatory from FY 2022-23, it initially required only disclosure — not assurance. Companies had to report their ESG data but were not required to have it independently verified. This first phase allowed companies to build reporting systems and processes without the additional pressure of audit readiness. However, it also revealed significant data quality issues — inconsistent methodologies, missing data points, and unverifiable claims — that highlighted the need for independent assurance.
The Assurance Mandate (2024 Onwards)
SEBI's introduction of reasonable assurance on BRSR Core parameters from FY 2023-24 for the top 150 companies represented a watershed moment for ESG audit in India. For the first time, ESG data was subject to the same independent scrutiny as financial data. The assurance requirement has driven significant improvements in ESG data quality, internal controls, and system design across the affected companies. Companies that invested early in robust ESG accounting systems have found the transition to assurance relatively smooth; companies that relied on ad hoc data collection are facing significant remediation costs.
Future Direction — Expanded Scope and Deeper Scrutiny
SEBI has indicated a phased expansion of assurance requirements to the top 250 and eventually the top 1000 listed companies. The scope of assured parameters is also expected to expand — from the current BRSR Core set to a broader range of ESG disclosures. Additionally, SEBI is considering requirements for supply chain ESG disclosures, which would extend assurance obligations to the value chains of listed companies. Our firm helps companies prepare for these upcoming requirements through our integrated ESG reporting frameworks advisory.
Audit Methodology
What Is the Step-by-Step ESG Audit Process?
The ESG audit follows a structured methodology aligned with ISAE 3000 (Revised) and adapted for the specific requirements of SEBI's BRSR assurance mandate.
Engagement Planning and Risk Assessment
ISAE 3000 (Revised)
Understanding ESG Data Systems and Controls
Substantive Testing of ESG Data
ISAE 3410 — GHG emissions
Site Visits and Physical Verification
Analytical Procedures
Management Representations and Documentation Review
Formation of Assurance Conclusion
Sector Application
How Do ESG Audits Differ Across Industries?
Manufacturing
ESG audits for manufacturers involve significant environmental verification — testing energy consumption data against meter readings and utility bills, verifying emission calculations against fuel consumption records and emission factors, checking waste classification and disposal documentation, and inspecting pollution control equipment. Site visits are essential for manufacturing ESG audits. Our firm leverages our internal audit expertise to design ESG audit procedures that are both thorough and efficient for manufacturing operations.
Technology and Services
ESG audits for technology companies focus more heavily on social and governance metrics — workforce diversity data from HR systems, employee well-being survey results, data privacy incident records, and board governance documentation. Environmental verification is typically limited to Scope 2 emissions from purchased electricity. The audit effort is more concentrated on data analytics and system testing than physical verification.
Financial Services
ESG audits for banks and financial institutions must address financed emissions — which require verification of portfolio-level data that depends on information from borrowers and investee companies. This creates unique audit challenges around data availability, estimation methodologies, and boundary definitions. Our firm assists financial institutions in developing auditable financed emissions methodologies and preparing for ESG assurance engagements that cover both operational and portfolio-level metrics.
Real Estate
Real estate ESG audits involve verification of green building certification claims, energy and water performance data across multiple projects, construction waste metrics, and community impact disclosures. The project-based nature of real estate operations means that data collection and verification must be conducted across multiple sites, each at different stages of development. Our firm provides efficient multi-site ESG audit coverage, drawing on our experience in corporate governance advisory and compliance across real estate portfolios.
Why Our Firm
Why Should You Choose N D Savla & Associates for ESG Audit?
Audit and Assurance Heritage
We are a chartered accountancy firm with deep roots in financial audit and assurance. ESG audit is a natural extension of our core competence. We bring established audit methodology, professional scepticism, and quality control standards to every ESG assurance engagement. Our audit approach is not imported from a consulting toolkit — it is built on decades of assurance practice.
Technical ESG Expertise
Our ESG team combines audit expertise with substantive knowledge of environmental science, social impact measurement, and governance best practices. We understand the technical basis of emission factors, the statistical methodology behind workforce diversity metrics, and the governance frameworks referenced in BRSR disclosures. This substantive knowledge makes our audits more effective and our findings more actionable.
Integrated ESG and Financial Audit
Many ESG metrics have direct financial implications — environmental liabilities, sustainability-linked loan covenants, and climate-related asset impairments. Our integrated approach ensures that ESG audit findings are communicated to the financial audit team and vice versa, providing a complete picture of the company's reporting quality across both financial and non-financial domains.
Regulatory Alignment
Our ESG audit methodology is aligned with ISAE 3000 (Revised), ISAE 3410, and SEBI's specific requirements for BRSR Core assurance. We stay current with all regulatory updates and incorporate them into our engagement methodology as they are issued. Our clients receive assurance opinions that are fully compliant with applicable standards and regulatory expectations.
Broader Practice
Our Broader ESG and Assurance Services
ESG audit is the verification layer — it depends on, and feeds back into, the rest of the practice:
Frequently Asked Questions
Frequently Asked Questions About ESG Audit
What is an ESG audit and why is it required in India?
Who can perform ESG audits under SEBI's BRSR assurance framework?
What is the difference between limited assurance and reasonable assurance for ESG?
What areas does an ESG audit typically cover?
How should a company prepare for its first ESG audit?
Need expert ESG audit support?
Talk to our assurance team — BRSR Core reasonable assurance, voluntary ESG assurance, green bond verification and audit-readiness reviews.
Book a ConsultationEmail: nainitsavla@savlagroup.in | N D Savla & Associates, Chartered Accountants, Mumbai