Pioneering the Future of ESG and Sustainability Assurance: ICAI’s Vision for Chartered Accountants in a Changing World

As sustainability transitions from a voluntary pursuit to an economic and regulatory imperative, the role of Chartered Accountants (CAs) is undergoing a profound transformation. No longer confined to financial statements and compliance, today’s CAs are increasingly expected to interpret, assure, and guide businesses on their environmental, social, and governance (ESG) commitments with the same rigour once reserved for financial data.

In response to this evolving landscape, The Institute of Chartered Accountants of India (ICAI) is taking significant steps to integrate sustainability into the core of the accounting profession. By developing frameworks, standards, and capacity-building initiatives, ICAI is ensuring that Chartered Accountants are equipped to lead and support businesses in meeting emerging ESG expectations at both national and global levels.

In this exclusive interaction with TheCSRUniverse, CA. Charanjot Singh Nanda, President, ICAI, offers deep insights into how the Institute is preparing the CA fraternity to lead the sustainability transformation. He elaborates on ICAI’s pioneering initiatives—from formulating sustainability reporting standards and technical tools like the BRSR Reporting Tool and Carbon Footprint Calculator, to capacity-building programs such as the SPARK initiative and the Certificate Course on Sustainability and BRSR.

To know more about ICAI’s vision and initiatives in the ESG and sustainability domain, read the full interview below.

Q&A

Q. With growing global emphasis on ESG, how is ICAI preparing the Chartered Accountancy profession to take a leadership role in sustainability and ESG reporting frameworks, both in India and internationally? Could you elaborate on key ICAI initiatives in this space?

A. The Institute of Chartered Accountants of India (ICAI), as the regulator of the audit and assurance profession in India, has been a pioneer in the domain of sustainability and ESG. In February 2020, ICAI constituted the Sustainability Reporting Standards Board (SRSB) to formulate standards for measuring and disclosing non-financial information about an entity's progress. These standards aim to meet the United Nations Sustainable Development Goals (SDG) 2030, reflecting ICAI's commitment to sustainability. Additionally, the Institute developed the Standards on Sustainability Assurance Engagements (SSAE) 3000, which provides guidance to practitioners undertaking assurance engagements of ESG/ BRSR data/reports which is the first such assurance standards in the world. Besides ICAI has formulated 16 social audit standards which is again the first set of such standards in the world.

Recognizing the evolving global and domestic landscape, ICAI has proactively taken steps to position Chartered Accountants (CAs) as strategic leaders in ESG and sustainability reporting.

The ICAI’s approach rests on three strong pillars:

A. Interaction with Regulators and Global Bodies:

ICAI maintains regular interactions, strategic dialogues and provides active support to national and international regulatory bodies in shaping the ESG reporting and assurance ecosystem. These engagements go beyond consultations to include technical inputs, capacity-building support and alignment efforts. Infact the Founder Chairman of SRSB CA. Sanjeev Singhal had the opportunity to chair UNCTAD ISAR for 2 years. SRSB of ICAI also received the award from UNCTAD ISAR for being the best board in the world. 

B. Standard Setting, Technical Guides and Tools:

ICAI, through its Sustainability Reporting Standards Board (SRSB), has taken key technical initiatives:

• Formulated the Background Material on Sustainability, ESG and BRSR, which is being updated to incorporate the latest concepts, regulatory developments, and global best practices.

• Formed a Study Group to develop the Indian Standard on Sustainability Assurance (SSA 5000), aligned with the International Standard on Sustainability Assurance (ISSA 5000) issued by the IAASB. This move reinforces ICAI’s role as a global thought leader in sustainability assurance.

• Introduced the Sustainability Reporting Maturity Model (SRMM) to help companies self-assess and benchmark their current stage of sustainability reporting practices.

The SRMM acts as a roadmap for progressive improvement in ESG disclosures, guiding entities toward higher levels of transparency and performance. Currently we are in the process of updating it.

• ICAI has been technical enablement and developing tools like BRSR Reporting Tool and Carbon Footprint Calculator to institutionalize good practices and facilitate easier compliance by companies and professionals.

• Instituted the ICAI Sustainability Reporting Awards, recognising companies that demonstrate excellence in ESG disclosures.

C. Capacity Building and Nation-wide Awareness:

ICAI is deeply committed to building capacity among professionals and raising awareness across the nation at large:

• Launched a comprehensive Certificate Course on Sustainability and BRSR, with over 2,350 professionals trained across 27 batches.

• Conducts weekly national webinars and physical workshops under its “SPARK” initiative, with the theme "Demystifying Sustainability, Catalyzing Growth." The SPARK framework stands for: Sustainable Practices, Progressive Action, Aligned Resources, Knowledge Expansion, and Resilient Growth. These sessions aim to empower members and stakeholders with the tools and understanding necessary to embed sustainability into core business and reporting strategies.

Q. Given the complexity and evolving nature of ESG disclosures, what specific skillsets and competencies is ICAI encouraging CAs to develop to ensure credibility, transparency, and assurance in sustainability reporting?

A. ICAI recognizes that the credibility, transparency, and assurance of ESG disclosures require a new generation of professional competencies, blending financial acumen with sustainability expertise. To prepare Chartered Accountants for this transformative role, ICAI has adopted a structured approach encompassing regulatory alignment, technical knowledge, and capacity building:

A. Alignment with Regulatory and Global Competency Expectations:

ICAI ensures that the skillsets being developed among members are in line with the expectations of both national regulators (SEBI, MCA, RBI, IFSCA) and international frameworks (IR, GRI, IAASB). This ensures that Indian CAs are prepared to operate confidently across regulatory landscapes and global ESG ecosystems.

B. Development of Technical Competencies and Specialized Knowledge:

Through the initiatives of the Sustainability Reporting Standards Board (SRSB), ICAI promotes mastery over the following key technical domains:

- Business Responsibility and Sustainability Reporting (BRSR), including advanced understanding of BRSR Core, value chain reporting, and sector-specific disclosures.
- International reporting standards such as the Global Reporting Initiative (GRI) enabling global compatibility in disclosures.
- Environmental accounting concepts, including greenhouse gas (GHG) accounting, life cycle assessment (LCA), and carbon credit mechanisms.
- Social sustainability domains, such as social impact assessment, social return on investment (SROI), and the operational aspects of the Social Stock Exchange.
- Integrated thinking and ESG risk advisory, with an emphasis on integrated reporting, enterprise-level ESG risk management, and digital tools for sustainability data analytics.

C. Capacity Building through Applied Learning and Practical Exposure:

These competencies are imparted through a well-designed ecosystem of:

• Structured learning modules, part of the Certificate Course on Sustainability and BRSR.
• Case-based learning and simulations to apply ESG principles in real-world contexts.
• Focused webinars, seminars, publications, and national conferences etc. that provide continuous updates and exposure to best practices.

Together, these initiatives are equipping Indian Chartered Accountants to play a credible, strategic, and future-ready role in ESG reporting and assurance—trusted by regulators, valued by businesses, and respected globally.

Q. How does ICAI envision the role of Chartered Accountants in bridging the gap between regulatory ESG mandates and corporate sustainability performance, especially across India’s diverse industries?

A. ICAI envisions Chartered Accountants as strategic enablers who can effectively translate regulatory ESG mandates into meaningful sustainability actions, bridging the gap between compliance requirements and business performance. Through a comprehensive and evolving framework, ICAI is positioning its members to drive sustainability across India’s diverse industrial sectors by focusing on three key pillars:

A. Alignment with Regulatory Expectations and Industry Realities:

ICAI works closely with national regulators (SEBI, MCA, RBI, IFSCA) and international bodies (IAASB, ISSB, IFRS Foundation) across all its ESG initiatives. These engagements ensure that the guidance and tools developed reflect ground-level challenges faced by businesses across sectors, enabling CAs to advise corporates in a manner that balances regulatory compliance with operational feasibility.

B. Technical Enablement through Tools and Sector-Specific Frameworks:

To facilitate actionable compliance and performance enhancement, ICAI—through its Sustainability Reporting Standards Board (SRSB)—has undertaken several initiatives:

• Development of digital tools which will simplify reporting and help organizations move beyond compliance to performance optimization.
• Revision of the Sustainability Reporting Maturity Model (SRMM 2.0) to enable companies to self-assess their ESG reporting maturity and benchmark their practices.
• Emphasis on sector-specific guidance, allowing CAs to deliver tailored sustainability solutions that are sensitive to the distinct operational and environmental contexts of industries such as manufacturing, services, MSMEs, and more.

C. Capacity Building with a Strategic Sustainability Focus:

ICAI’s capacity-building programs are designed not just to inform but to transform the role of CAs into ESG strategists and advisors. Key focus areas include:

• Training on climate risk assessment, green finance instruments, and sustainable capital markets to deepen members’ ability to integrate ESG into core business and financial decision-making.
• Workshops and courses that move beyond compliance mechanics to explore how sustainability creates long-term value across sectors.
• Exposure to best practices through national webinars, panel discussions, and collaborations with global and national thought leaders.

Through this integrated approach, ICAI is empowering Chartered Accountants to act as a critical link between regulators and industry—not only ensuring high-quality ESG disclosures but also helping businesses embed sustainability into strategy, operations, and performance outcomes.

Q. What initiatives has ICAI undertaken or planned to collaborate with regulators, industry bodies, and other stakeholders to standardize and enhance the quality of ESG disclosures and assurance practices in India?

A. ICAI, through its Sustainability Reporting Standards Board (SRSB), is committed to building a robust, standardized, and credible ESG reporting and assurance ecosystem in India. This is being achieved through sustained multi-stakeholder collaboration across three strategic pillars:

A. Active Engagement with Regulatory Bodies and Standard-Setters:

ICAI maintains continuous dialogue and provides technical support to national regulators and global standard-setters to strengthen the policy and regulatory framework for ESG:

• Engaged closely with SEBI, Ministry of Corporate Affairs (MCA), International Financial Services Centres Authority (IFSCA), and RBI, contributing formal technical inputs to policy consultations.
• Submitted recommendations on SEBI’s consultation papers on BRSR Core and the Sustainable Finance Framework, ensuring alignment with practical reporting and assurance considerations.
• Participated in the Social Stock Exchange Advisory Committee (SSEAC), contributing to the development of a structured framework for Social Impact Assessment Standards.

B. Development and Alignment of Technical Standards and Frameworks:

ICAI is actively contributing to the evolution of Indian ESG assurance practices and disclosure standards by:

• Offering detailed inputs to the International Auditing and Assurance Standards Board (IAASB) on the International Standard on Sustainability Assurance (ISSA 5000), reinforcing India's voice in global sustainability assurance discussions.
• Formulating the Indian Standard on Sustainability Assurance, aligning local assurance practices with global benchmarks.
• Conducting roundtable consultations with industry and assurance professionals to standardize key ESG concepts, including value chain disclosures, assurance terminology, and green credit mechanisms.

C. Facilitating Multi-Stakeholder Dialogue and Capacity Development:

To ensure that ESG standardization reflects real-world applicability, ICAI convenes forums that bring together voices from across the ecosystem:

• Organizing industry roundtables and consultations with preparers, assurers, investors, and regulators to inform and refine technical guidance and position papers.
• Promoting knowledge exchange and harmonization across sectors through strategic engagements with industry associations, sustainability professionals, and academia.

Through these collaborative efforts, ICAI is playing a central role in shaping the future of ESG reporting and assurance in India, enhancing the credibility, comparability, and utility of disclosures for investors, regulators, and society at large.

Q. As taxation and policy reforms increasingly align with sustainability goals—such as carbon taxes and green incentives—how can CAs strategically advise businesses to navigate these changes while fostering sustainable growth?

A. ICAI recognizes that the intersection of taxation, policy reform, and sustainability is a pivotal area where Chartered Accountants can deliver high-value strategic guidance. By staying aligned with emerging regulatory frameworks and global financial trends, ICAI is positioning its members to act as trusted advisors who enable businesses to thrive in a green economy. This is being accomplished through a focused strategy built on three pillars:

A. Engagement with Policymakers and Regulatory Alignment:

ICAI maintains ongoing interactions with regulators and other key policymakers to stay abreast of fiscal and regulatory developments related to sustainability, including:

• Carbon pricing mechanisms, green credit programmes, and emerging taxonomies under India’s sustainable finance roadmap.
• Collaborating with regulators to share technical insights on green fiscal incentives, climate-aligned tax reforms, and sustainable finance instruments that impact both large corporations and MSMEs.

This engagement enables ICAI to relay evolving regulatory expectations to its members and position them to offer timely, compliant advice to businesses.

B. Technical Enablement in Sustainability-Linked Fiscal Instruments:

Through the efforts of the Sustainability Reporting Standards Board (SRSB), ICAI is strengthening member competencies in:

• Carbon tax regimes, carbon trading platforms, and internal carbon pricing models relevant to both domestic and global operations.
• Green bonds, blended finance structures, and sustainability-linked investment vehicles—tools that require financial structuring and strategic insight.
• Understanding the tax implications of green investments, ESG-linked performance incentives, and sustainable procurement policies.

This technical knowledge allows CAs to advise clients on how best to integrate environmental objectives with financial decision-making.

C. Capacity Building and Strategic Business Advisory:

ICAI’s capacity-building initiatives prepare CAs to go beyond compliance and offer forward-looking advisory services:

• Certificate Courses, national webinars, and guidance papers train members on how to evaluate, structure, and optimize business models under sustainability-focused fiscal regimes.
• Focus areas include advising on climate-smart investments, identifying green tax benefits, and developing sustainability-aligned financial strategies.
• Chartered Accountants are encouraged to adopt a strategic advisory mindset, helping businesses become both financially resilient and environmentally responsible.

By integrating tax expertise with sustainability knowledge, ICAI is equipping Chartered Accountants to become key enablers of sustainable economic growth, helping businesses respond proactively to policy changes while creating long-term value. 

Q. How is ICAI supporting Chartered Accountants to maintain strong ethics and ensure accurate, reliable ESG and sustainability reporting?

A. Ethical conduct, independence, and integrity have long been foundational to the ICAI’s identity and are being actively reinforced in the emerging landscape of ESG and sustainability reporting. Through a structured three-tier approach, ICAI is ensuring that Chartered Accountants uphold the highest standards of accuracy, transparency, and professional ethics in sustainability engagements.

A. Alignment with Global Ethical and Regulatory Standards:

ICAI proactively engages with global and national bodies to ensure that ethical expectations in sustainability reporting remain robust and forward-looking:

• A dedicated Study Group has been constituted to examine alignment of the ICAI Code of Ethics with the International Ethics Standards Board for Accountants (IESBA) and the proposed International Ethics Standards for Sustainability Assurance (IESSA).
• The Institute’s ethical principles—independence, confidentiality, professional competence, and professional scepticism—are being integrated into all guidance materials and reporting/assurance frameworks.
• ICAI’s ethical perspectives are regularly conveyed through interactions with regulatory and global bodies ensuring India's position is reflected in global deliberations on ethics in ESG assurance.

B. Strengthening Technical Standards to Uphold Trust and Reliability:

To institutionalize trust in ESG reporting and assurance, ICAI is embedding ethics within its technical guidance:

• The proposed Indian Standard on Sustainability Assurance (SSA 5000) is being developed to uphold strong ethical and assurance principles, aligned with global benchmarks like ISSA 5000.
• The BRSR Reporting Tool, currently under development, is designed to promote consistency, minimize human error, and enable data accuracy in disclosures.
• Initiatives such as the Sustainability Reporting Maturity Model (SRMM) 2.0 further promote transparent, staged improvements in disclosure practices, encouraging organisations to voluntarily mature their reporting ethics and governance systems.

C. Promoting an Ethics-Centric Culture through Awareness and Capacity Building:

ICAI is cultivating a culture of ethical consciousness and professional responsibility through its knowledge dissemination initiatives:

• Webinars—such as “BRSR Best Practices,” “Avoiding Common Reporting Errors,” and “ESG Assurance Readiness”—focus on developing ethical clarity and reporting integrity among members.
• The recently held National Conference on Sustainability and Ethics in Accounting reinforces ICAI’s emphasis on ethics as the foundation for trust in sustainability information.
• Members are sensitized to the ethical risks in ESG assurance, including greenwashing, conflicts of interest, and selective reporting, and are trained to address them through peer reviews, internal quality control systems, and professional scepticism.
• ICAI embeds its Code of Ethics across all sustainability programmes, ensuring ethical behavior is not a peripheral issue, but a central tenet of every ESG engagement undertaken by CAs.

Through these measures, ICAI is empowering Chartered Accountants to act as ethical stewards of sustainability information, ensuring that stakeholders—ranging from investors to regulators and the public—can rely on the ESG data and assurance provided by the profession.

Q. How can ICAI foster innovation and thought leadership among CAs, encouraging them not only to comply with ESG regulations but to proactively drive sustainability strategies that generate long-term shared value for businesses and communities?

A. ICAI envisions Chartered Accountants not merely as compliance professionals, but as drivers of innovation and thought leadership in the evolving ESG landscape. Through a multi-tiered approach, ICAI is enabling CAs to go beyond regulatory mandates and actively shape sustainability strategies that create long-term shared value for businesses, investors, and society.

A. Strategic Engagement with Regulators and Global Forums:

ICAI, through the Sustainability Reporting Standards Board (SRSB), maintains strong engagement with national and international bodies to influence the ESG narrative in ways that empower CAs to lead, not just follow:

• ICAI participates in global consultations and national policymaking processes to champion forward-looking ideas, including on issues like green taxonomy, sustainable finance, and social impact assessments.
• Through its collaborations with UNGCNI, SEBI, MCA, RBI, IFSCA, and international bodies like IAASB and ISSB, ICAI ensures that the role of CAs in driving value-centric sustainability is embedded in emerging regulatory and disclosure frameworks.
• Initiatives like the ICAI Sustainability Reporting Awards not only reward regulatory alignment but highlight innovation and transformative impact, encouraging CAs to rethink how sustainability is delivered and communicated.

B. Developing Tools, Standards, and Frameworks that Promote ESG Innovation:

ICAI is equipping CAs with technical instruments and benchmarks that foster innovation across industries and sustainability themes:

• Technical tools help businesses integrate sustainability into core operations through data-driven decision-making, enabling CAs to advise on ESG performance improvements.
• The ongoing enhancement of the Sustainability Reporting Maturity Model (SRMM) 2.0 allows entities to map their ESG journey and identify areas for innovative action.
• Research publications and practical guides on emerging topics—such as carbon markets, biodiversity finance, climate risk disclosures, and sustainable capital allocation—create a robust intellectual foundation for CA-led innovation.

C. Cultivating a Culture of Learning, Leadership, and Impact:

ICAI promotes continuous innovation and strategic foresight through a wide array of capacity-building and public engagement initiatives:

• Skilling members through forward-looking modules—such as green finance instruments, circular economy models, and transition planning.
• Initiatives like ICAI#75 Green Mahotsav, Sustainability Month - June 2025, and awareness campaigns foster environmental stewardship and community-centric leadership as professional values.
• ICAI promotes case-based learning, real-time ESG scenario analysis, and exposure to global best practices, enabling CAs to become innovation enablers in sustainability domains.

Through this integrated approach, ICAI is positioning Chartered Accountants to become transformational leaders—those who move beyond compliance to design, implement, and scale sustainability strategies that deliver long-term value for companies, communities, and the planet.

Q. Looking to the future, could you share your perspective on the key trends and challenges that will shape the CA profession’s role in ESG and sustainability reporting over the next 5 to 10 years, and advice for practitioners to stay ahead in this evolving landscape?

A. ICAI foresees the next 5 to 10 years as a pivotal period for the Chartered Accountancy profession, where CAs will play a transformative role in integrating sustainability into business practices, regulatory compliance, and strategic decision-making. Through sustained engagement, technical foresight, and capacity building, ICAI is preparing CAs to lead this evolution.

A. Policy Engagement and Global Alignment:

ICAI, as the regulator of the audit and assurance profession in India, works closely with national regulators (SEBI, MCA, RBI, IFSCA) and international bodies (IAASB, ISSB, IFRS Foundation) across all its ESG initiatives. These engagements help pre-emptively shape the profession’s response to upcoming ESG trends.

• ICAI’s inputs on frameworks like IFRS S1/S2, SEBI’s BRSR Core, and the Sustainable Finance Framework are paving the way for a future where ESG and financial disclosures are deeply interlinked.
• The convergence of Indian standards with global norms, such as the development of Indian SSA 5000 aligned with ISSA 5000, reflects ICAI’s proactive stance in enabling Indian CAs to remain internationally relevant.

B. Technical Enablement through Standards, Tools, and Sectoral Insights:

The future of ESG will be marked by increasing technical complexity and sector-specific requirements, which ICAI is addressing through focused interventions:

• Trends such as value-chain disclosures, Scope 3 emissions, biodiversity metrics, and social impact assessments are expanding the boundaries of sustainability reporting.
• Digital transformation will reshape how ESG data is handled. ICAI is enabling early adoption through tools like the BRSR Reporting Tool, Carbon Footprint Calculator, and Sustainability Reporting Maturity Model (SRMM 2.0).
• ICAI is also prioritizing sector-specific ESG guidance to help members address the nuanced challenges of India’s diverse industry base, including MSMEs, manufacturing, and service sectors.

C. Capacity Building and Guidance for Future-Ready Practitioners:

To equip CAs with the competencies needed for the ESG transition, ICAI promotes a continuous learning culture, with a strong foundation in ethics and innovation:

• CAs are encouraged to strengthen skills in areas such as GHG accounting, climate risk integration, ESG analytics, sustainability-linked tax and incentives, and green finance mechanisms.
• ICAI’s structured programs—including certificate courses, SPARK webinars, technical publications, and case-based learning modules—ensure practitioners are future-ready.
• As sustainability intersects with technology, AI, blockchain, and automation will increasingly feature in ESG assurance. CAs are trained to harness these tools while maintaining professional skepticism and ethical discipline.
• ICAI also addresses a key challenge—ensuring equitable access to ESG knowledge—by creating scalable content and resources for small and mid-sized CA firms.

Advice to Practitioners:

To stay ahead in this rapidly evolving landscape, Chartered Accountants are advised to:

• Stay aligned with ICAI’s ESG knowledge ecosystem—through regular participation in its learning programs and study materials.
• Embrace emerging digital tools for reporting, analytics, and assurance.
• Build interdisciplinary acumen, blending finance with environmental and social policy understanding.
• Develop sectoral specialization to provide tailored ESG advisory.
• Most importantly, uphold the highest standards of ethics, objectivity, and transparency, which will remain the bedrock of trust in sustainability reporting.

Q. With emerging digital tools such as AI, blockchain, and data analytics transforming financial and ESG reporting, what steps is ICAI taking to integrate these technologies into the CA curriculum and ongoing professional development?

A. The dynamic global economy has created new employment opportunities for the Chartered Accountants in areas such as Forensic Accounting, Valuation, Sustainability Reporting, Entrepreneurship and Risk Management apart from the conventional domains of Financial Reporting, Finance and Auditing. In order to equip the aspiring Chartered Accountants with the requisite skills to effectively undertake the contemporary roles, subjects like Entrepreneurship and Start-ups, Digital Ecosystem, Strategic Cost and Performance Management, Forensic Accounting, Risk Management, Sustainability Reporting, Valuation, International Taxation, FOREX and Treasury management and Financial Services and Capital Markets, which have global relevance have been incorporated as Self-Paced Online Modules which is a technology enabled learning and assessment.

In addition to structured training programs, ICAI has also launched the ICAI CA GPT for Students, a dedicated AI-powered tool designed to assist CA students at all levels—Foundation, Intermediate, and Final. This tool enables students to generate AI-driven responses to past exam questions, subject-wise queries, checklists, guidelines, and other preparatory materials. The AI model is specifically trained on ICAI’s syllabus, past examination trends, and best practices to enhance learning and conceptual clarity. 

Further, ICAI has been actively developing AI-based research tools to assist in data analysis, fraud detection, and automation of compliance. AI-driven learning modules and digital resources are being introduced to make CA education more interactive and application-oriented.

These initiatives reflect ICAI's commitment to preparing future-ready professionals who can navigate the rapidly evolving digital landscape and meet the dynamic needs of the global business environment.

Q. In light of ICAI’s education reforms, how is sustainability and ESG reporting being embedded within the CA syllabus to equip future professionals for these emerging responsibilities?

A. To uphold the quality at scale and remain globally competitive and future ready, ICAI in its CA curriculum has introduced an optional paper that embeds ESG and Sustainability Reporting, Sustainability Assurance, Green Accounting and Sustainable Finance in alignment with global sustainability trends. The Course also focuses on building competence in non-financial reporting frameworks, integrating financial performance with ESG outcomes and preparing Chartered Accountants to play a pivotal role in the assurance of ESG and BRSR disclosures. These developments are complemented by the inclusion of emerging technology domains such as artificial intelligence, blockchain, and data analytics.