BRSR-Based Impact Assessment: Why Dual Reporting Matters for Founders and Investors

In India’s evolving impact investment landscape, measuring both financial and social outcomes has become more critical than ever. Founders and investors alike are looking for frameworks that go beyond traditional financial reporting — ones that reflect purpose, sustainability, and long-term value creation.

The Business Responsibility and Sustainability Report (BRSR) framework, introduced by SEBI and adopted by the BSE, provides a structured way to assess a company’s non-financial performance. While originally designed for listed entities, it’s increasingly being adopted by startups and social enterprises that want to demonstrate measurable impact alongside financial growth.

At Sangatna Angels, we believe this dual reporting — combining BRSR-based impact assessment with financial performance metrics — is a cornerstone of patient capital.

What is BRSR and Why It Matters

The BRSR (Business Responsibility and Sustainability Reporting) framework is built on nine principles of responsible business conduct. These principles cover aspects like ethical governance, environmental stewardship, employee well-being, value-chain responsibility, and community engagement.

Unlike earlier CSR disclosures, BRSR encourages companies to look at how they create value sustainably. It asks deeper questions — not just about what profits were made, but how those profits were earned and who benefited in the process.

For startups and impact-driven ventures, adopting BRSR early does three things:

1. Builds investor confidence by showing a commitment to transparent impact measurement.

2. Guides internal decision-making with data-driven sustainability goals.

3. Strengthens brand credibility with customers and partners who value ethical business practices.

Why Dual Reporting is Powerful

A founder’s journey is often measured in milestones of revenue, customer traction, and profitability. But when the venture addresses a deep social or environmental challenge, financial data alone tells only half the story.

By combining financial metrics (revenue, margins, ROI) with impact metrics (beneficiaries reached, emissions reduced, livelihoods created), founders can articulate their true performance.

For investors, especially those aligned with patient capital, dual reporting creates a comprehensive view of enterprise health:

• Short-term financial resilience, and

• Long-term social and environmental contribution.

This clarity helps investors make informed decisions about follow-on funding, timelines for return expectations, and the potential for scalable, sustainable growth.

Benefits for Founders

• Clarity in mission execution: BRSR indicators help founders set measurable sustainability goals aligned with their mission.

• Improved internal processes: Tracking energy use, diversity ratios, or local sourcing helps identify operational efficiencies.

• Investor readiness: Startups with clear dual reporting systems can articulate both impact and performance in funding discussions.

Benefits for Investors

• Enhanced due diligence: Investors gain a structured view of non-financial performance and ESG compliance.

• Long-term portfolio health: Measuring impact ensures investments align with purpose and public good.

• Legacy creation: Especially for investors in women-led and social enterprises, dual reporting demonstrates tangible societal return on investment.

The Sangatna Lens

At Sangatna Angels, our investment philosophy is rooted in patient capital — giving time for purposeful ideas to mature. Many of the women-led firms we support work in agritech, food, and social inclusion spaces where impact unfolds over years, not quarters.

Adopting BRSR-based impact assessment helps these founders track their progress systematically, while dual reporting ensures investors see both the financial growth and societal outcomes of their investments.

It is not just about how fast a company grows, but how meaningfully it grows.

In Conclusion

As India transitions toward responsible capitalism, founders who embrace dual reporting frameworks like BRSR gain a strategic edge. They attract investors who value sustainability, build trust with stakeholders, and leave a lasting footprint of purpose-driven growth.

For investors, this approach means clarity, accountability, and the opportunity to invest not just in returns, but in resilience, reputation, and real change.