Sustainable Packaging and ESG Reporting: What Indian Corporates Need to Know in 2026

ESG reporting has moved from voluntary aspiration to mandatory disclosure in India faster than most corporate sustainability teams anticipated. The Securities and Exchange Board of India's Business Responsibility and Sustainability Reporting (BRSR) framework — mandatory for the top 1,000 listed companies since FY 2022–23, with BRSR Core mandatory from FY 2023–24 — includes specific requirements around packaging sustainability.

For food businesses, restaurant chains, FMCG companies, and hospitality groups with listed entities, packaging is now a material ESG disclosure item. Here is what that means in practice.

WHAT BRSR REQUIRES ON PACKAGING

• Principle 2 of BRSR (Businesses should conduct and govern themselves with ethics) requires disclosure of sustainable sourcing practices including packaging materials
  
  
• Environment section requires reporting on plastic waste generated, managed under EPR, and whether EPR obligations are met
  
  
• Product responsibility section requires disclosure of recyclable, biodegradable, or compostable packaging as a percentage of total packaging
  
  
• BRSR Core (FY 2023-24 onwards) includes Key Performance Indicators on plastic packaging and EPR compliance that are subject to reasonable assurance by third-party auditors

A listed food company that switches to certified compostable packaging can document a measurable reduction in plastic packaging as a percentage of total, demonstrate EPR compliance savings, and disclose a verifiable sustainability claim — all of which strengthen BRSR reporting quality and ESG investor perception.

HOW PACKAGING AFFECTS ESG RATINGS

The major ESG rating agencies — MSCI, Sustainalytics, and CRISIL's ESG scores for Indian companies — assess environmental material intensity, waste and pollution exposure, and product stewardship. Packaging directly affects all three:

• Environmental material intensity: companies using natural, renewable packaging materials score better than those using virgin petroleum-based plastics
  
  
• Waste and pollution exposure: EPR compliance and certified compostable packaging reduce the assessed risk exposure score
  
  
• Product stewardship: documented packaging sustainability claims and third-party certifications (IS 17088, EN 13432) support higher product stewardship scores

THE INVESTOR COMMUNICATION DIMENSION

Beyond regulatory compliance, packaging sustainability is increasingly a direct investor communication. Impact investors, ESG-focused institutional funds, and retail investors who read sustainability reports are evaluating food companies on the authenticity of their packaging claims — not just their existence.

A company that switched from plastic to certified compostable packaging, documents the transition with third-party certification, and quantifies the resulting reduction in plastic waste generation has a materially stronger ESG narrative than one that uses vague 'sustainable packaging' language without specifics.

THE PROCUREMENT CASCADE

ESG requirements are cascading through supply chains. Listed companies under BRSR pressure are now passing sustainability requirements down to their food service vendors, catering contractors, and packaging suppliers — requiring documented certifications and material specifications rather than accepting verbal assurances.

At Prakritii, our bagasse and areca leaf products come with the IS 17088 and food safety certifications required for corporate ESG supply chain documentation. We provide the paperwork, not just the product.

The most credible ESG commitment is one you can document at the packaging level.

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