BRSR Reporting for IT Companies: What TCS, Infosys and Wipro Must Disclose

India's top information technology companies face a unique set of sustainability reporting obligations under the Business Responsibility and Sustainability Reporting (BRSR) framework. As operations-intensive businesses with sprawling global footprints, firms like TCS, Infosys, and Wipro must navigate complex carbon accounting requirements across multiple jurisdictions and emission scopes. This comprehensive guide breaks down what BRSR mandates for IT companies and how to achieve compliance efficiently.

IT Sector and BRSR: Understanding the Regulatory Requirement

All leading Indian IT companies fall within SEBI's top 1000 listed entities, making BRSR compliance non-negotiable. The framework applies to the largest IT firms including TCS, Infosys, Wipro, HCL Technologies, and Cognizant's India operations.

Why BRSR Applies to IT Companies

BRSR became mandatory for the top 1000 companies by market capitalization in 2022, with reporting beginning in FY2023-24. IT services firms generate significant revenues and employ hundreds of thousands, placing them squarely in SEBI's compliance net. Unlike smaller companies, these organizations cannot opt out or delay reporting.

Scope of BRSR for Technology Firms

BRSR requires disclosure across nine principles covering governance, environmental impact, and social responsibility. For IT companies, the environmental principle (Principle 4) and business ethics components are most material. Reporting demands granular data on energy use, emissions across all three scopes, water consumption, waste generation, and workplace practices.

Key BRSR Disclosures for IT Companies

What is BRSR Reporting? provides foundational context, but IT firms must understand specific disclosure obligations tailored to their operations.

Energy Consumption and Emission Reporting

IT companies must report total energy consumed (in megajoules) across all facilities, broken down by source. This includes purchased electricity, renewable energy, natural gas, and diesel consumption. Scope 1 emissions (direct) typically come from company-owned vehicles and on-site fuel use, while Scope 2 emissions dominate most IT firm carbon footprints through purchased electricity for data centres and offices.

Greenio's carbon accounting platform helps IT companies aggregate energy data from multiple facilities and automatically calculate emissions using SEBI-approved methodologies and GHG Protocol standards.

Water Consumption and Waste Management

BRSR requires disclosure of water withdrawn, consumed, and recycled across all operations. For IT companies, this is particularly important at data centre locations where cooling systems consume significant water volumes. Waste metrics include hazardous waste, e-waste from IT equipment, and general waste sent to landfill or recycling facilities.

Climate Change and Mitigation Targets

Companies must disclose Scope 3 emissions (indirect, supply chain-related) and any science-based reduction targets. Reporting should include details on transition plans addressing climate risks and opportunities within the business model.

Specific Challenges for IT Companies in BRSR Compliance

The IT sector's unique operational structure creates distinct accounting complexities not faced by manufacturing or traditional service industries.

Data Centre Emissions and Scope 2 Complexity

Data centres are the largest single contributor to IT firm carbon footprints. Unlike office buildings where energy consumption is relatively stable, data centre power draws fluctuate based on workload, geographic distribution, and cooling efficiency. Companies must track PUE (Power Usage Effectiveness) ratios and account for purchased renewable energy credits accurately. Many firms operate data centres across multiple countries with different grid emission factors, requiring jurisdiction-specific calculations.

Leased Office Buildings and Scope 3 Accounting

The majority of IT company facilities are leased rather than owned. This creates attribution challenges: should emissions from leased buildings be counted as Scope 2 (if the company pays for electricity) or Scope 3 (if the landlord includes utilities in rent)? BRSR guidance requires companies to include all facilities under operational control, but calculating landlord-provided utilities demands detailed lease analysis and utility data sharing agreements.

Employee Commuting and Hybrid Work Models

Post-pandemic hybrid work has created volatility in employee commuting emissions. IT firms must establish methodologies to estimate commuting-based Scope 3 emissions when actual employee travel data is incomplete. Remote work reduces emissions but complicates data collection and creates baseline uncertainties for year-on-year comparisons.

Carbon Accounting for IT Companies in India explores detailed methodologies for these specific challenges.

Supply Chain and Business Travel

IT services companies generate significant Scope 3 emissions through air travel for client delivery and supply chain activities. BRSR requires transparent accounting of consultant travel, with many firms implementing carbon offset programs. Upstream emissions from hardware procurement (servers, laptops, networking equipment) add additional complexity to supply chain scope 3 calculations.

Best Practices from Leading Indian IT Firms

Major IT companies have developed strategic approaches to BRSR compliance that balance rigor with operational feasibility.

Renewable Energy Procurement

TCS, Infosys, and Wipro have committed to substantial renewable energy purchasing, with targets ranging from 50-100% renewable electricity. These firms use Power Purchase Agreements (PPAs) and renewable energy credits to meet targets while maintaining operational flexibility. Transparency in renewable energy accounting has become a competitive differentiator.

Science-Based Targets and Net-Zero Pathways

Leading firms have aligned with SBTi (Science Based Targets initiative) frameworks, setting reduction targets grounded in climate science rather than arbitrary percentages. This approach enhances credibility with investors and clients while providing clear accountability metrics.

BRSR Compliance Tools and Technology

Implementing a systematic approach to data collection significantly reduces reporting burdens. Greenio enables IT companies to centralize energy and emissions data from dispersed facilities, automate scope calculations, and generate BRSR-compliant reports with full audit trails.

FAQ

What are the reporting deadlines for BRSR compliance in 2026?

BRSR reports for FY2025-26 must be filed by 30 June 2026 as part of annual sustainability reporting obligations. IT companies should begin data collection processes by Q4 2025 to ensure timely compilation and assurance.

How do IT companies calculate Scope 3 emissions for BRSR?

Scope 3 emissions should be calculated using either the Spend-Based method (multiplying supplier spending by industry emission factors) or Activity-Based method (using actual consumption data like kilometres travelled or tonnes purchased). GHG Protocol Corporate Standard provides detailed guidance.

Is renewable energy enough to meet BRSR climate targets?

Renewable energy reduces Scope 2 emissions but does not eliminate them entirely in most calculations. BRSR also requires absolute reduction targets and efficiency improvements. Companies must pursue energy conservation alongside renewable procurement.

When should IT companies engage external assurance for BRSR reporting?

While not mandatory for BRSR, third-party assurance is recommended to build stakeholder confidence. Many institutional investors now require limited or reasonable assurance on emissions data as part of ESG evaluation processes.

Conclusion

BRSR compliance for India's IT giants demands systematic approaches to energy tracking, emissions calculation, and stakeholder disclosure. While challenges exist around data centre attribution and leased facility accounting, leading firms demonstrate that robust carbon management strengthens both regulatory compliance and business resilience. Companies beginning their BRSR journey should prioritize data infrastructure, establish clear governance structures, and leverage technology platforms designed for the complexity of IT operations.