Agriculture, the backbone of India’s economy and livelihood for millions, is undergoing a transformative shift as Environmental, Social, and Governance (ESG) reporting gains increasing prominence. In 2025, Indian agribusinesses are embracing ESG frameworks as essential tools for sustainable growth, climate resilience, and global market access. This blog explores how ESG reporting is reshaping agriculture, the technologies enabling it, and the benefits and challenges involved.
ESG in Indian Agriculture: A Growing Reality
As per Farmonaut, by 2025, over 60% of Indian agribusinesses are expected to adopt ESG reporting standards to enhance transparency and sustainability. This trend reflects growing recognition that robust ESG practices improve resource efficiency, social equity, governance, and ultimately, profitability.
Farmers, cooperatives, and agribusinesses are integrating ESG metrics to measure carbon footprints, water efficiency, fair labour practices, and supply chain traceability. These disclosures are increasingly valued by global buyers, investors, and regulators demanding responsible sourcing.
SEBI’s BRSR: Driving ESG Transparency and Accountability
The Securities and Exchange Board of India (SEBI) mandates the Business Responsibility and Sustainability Report (BRSR) for India’s top 1,000 listed companies, including agribusinesses like ITC, Britannia, and leading agri-input firms.
• Mandatory Reporting: From FY 2022‑23, top-listed entities must disclose comprehensive ESG metrics under BRSR, replacing the earlier BRR framework.
• BRSR Core: Introduced in FY 2023‑24 for the top 150 companies and gradually extended to the top 1,000 by FY 2026‑27, BRSR Core focuses on key ESG indicators, value chain disclosures, and limited third-party assurance for reliability.
• Scope: Covers governance, energy and emissions, social practices, water and waste management, and extends ESG compliance across value chains.
• Impact on Agribusiness: Companies like ITC and Britannia must strengthen ESG frameworks, enhance annual report disclosures, and engage stakeholders, driving transparency, investor confidence, and alignment with global sustainability standards.
SEBI’s BRSR framework embeds ESG rigour into corporate governance, making sustainability reporting in agribusinesses a core growth and compliance imperative for India’s largest listed companies.
Environmental Sustainability: Climate-Resilient, Resource-Efficient Agriculture
Agricultural ESG reporting tracks critical indicators like greenhouse gas emissions, water use, pesticide and fertiliser application, and biodiversity impacts. Regenerative practices (cover cropping, reduced tillage), organic farming, precision irrigation, and integrated pest management feature prominently in documented ESG improvements.
According to the ICAR Annual Report 2023-24 and CRISIL’s 2024 sustainability insights, Indian agribusinesses and farms implementing ESG-aligned practices such as precision irrigation, integrated pest management, organic inputs, and resource-efficient technologies can achieve input cost savings in the range of 8–12%. These savings arise from optimised use of water, fertilisers, energy, and chemicals, effectively reducing overheads while increasing productivity and ecological balance.
Advanced technologies such as satellite monitoring, AI-driven advisory platforms, and blockchain-based traceability systems enable real-time ESG data collection and transparency across complex supply chains, helping farmers optimise inputs and verify sustainable practices.
• Farmonaut: Provides satellite-based crop health, soil moisture, and precision irrigation advisories, helping over 60% of Indian farms reduce input costs and optimise resources.
• ISRO Satellite Programs: RISAT, Resourcesat, and Cartosat support crop stress detection, soil mapping, and drought assessment, integrated with government projects like NADAMS for early warning and yield prediction.
• CropIn: Uses AI, blockchain, and machine learning to track ESG compliance, connecting over 10 million farmers and enabling supply chain traceability for exports.
• Boomitra: Issues verified soil carbon credits to smallholder farmers via blockchain, ensuring transparency and income from sustainable practices.
Together, these platforms provide actionable ESG insights and certification capabilities, driving sustainable agriculture and market access across India in 2025.
Social Equity: Empowering Farmers and Rural Communities
ESG reporting goes beyond the environment to assess social impacts, including labour rights, gender equity, rural community development, and fair pricing policies. Many agribusinesses incorporate farmer capacity building through training, cooperative models, financial inclusion efforts, and health initiatives in their ESG frameworks to foster inclusive, resilient rural economies.
Governance Reforms: Driving Transparency and Accountability
Governance-oriented ESG measures include the adoption of standardised reporting frameworks, mandatory disclosures for government-subsidised agribusinesses, and multi-stakeholder collaboration between farmers, NGOs, the private sector, and government bodies.
Digital governance tools enhance compliance and traceability, easing audit processes and bolstering credibility in domestic and export markets. APIs combining satellite and farm-level data provide scalable reporting solutions for smallholder farmers and large agribusinesses alike.
Opportunities and Challenges Ahead
The rise of ESG reporting presents significant opportunities: access to premium markets, ESG-linked financing, improved resource efficiency, and better risk management. However, challenges remain in capacity building, infrastructure gaps, the cost of compliance, and heterogeneous adoption among smallholder farmers.
Continued investments in digital literacy, technology platforms, policy incentives, and collaborative governance will be key to scaling ESG reporting and embedding sustainability across India’s agricultural value chains.
ESG reporting in agriculture is rapidly moving beyond a compliance exercise; it is a vital lever for building sustainable, resilient, and inclusive food systems in India. In 2025 and beyond, empowered by technology and governance reforms, Indian agriculture stands poised to lead by example in responsible agricultural practices that harmonise profit, people, and planet.
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