# What is the difference between essential and leadership indicators in BRSR?

Canonical: https://senseible.earth/answers/brsr-essential-vs-leadership-indicators

Essential indicators are mandatory for every company filing BRSR. Leadership indicators are voluntary, though SEBI asks companies to try to report them. Scope 1 and 2 emissions are essential; Scope 3 emissions, value chain impacts and life cycle assessments sit in the leadership indicators.

## What SEBI said

SEBI's May 2021 circular splits reporting under each of the nine principles into essential and leadership indicators. Essential indicators must be reported; leadership indicators are voluntary, and listed entities should endeavour to report them as well.

## Where common environment items sit (Principle 6)

- Essential: total energy and energy intensity, water, air emissions other than GHG, Scope 1 and 2 emissions and intensity, waste, environmental compliance.
- Leadership: renewable and non-renewable energy split, water in stressed areas, Scope 3 emissions and intensity, business continuity plans, value chain impacts, and the share of value chain partners assessed.

## Why a supplier gets asked leadership questions

A customer that chooses to report Scope 3 or value chain impacts can only do it with supplier data. So a voluntary line for the listed company becomes a data request for you. Answer the parts you have records for and say which parts are estimates.

## What Senseible does here

Senseible reads kWh, litres and kg from electricity bills and fuel invoices into a dated record per site, with the factor and source on every line, and prepares BRSR drafts from that data. Reports are self-declared drafts.

- [Does BRSR require Scope 3?](https://senseible.earth/answers/does-brsr-require-scope-3)
- [Renewable vs non-renewable energy in BRSR](https://senseible.earth/answers/brsr-renewable-vs-non-renewable-energy)
- [Supplier questionnaire, field by field](https://senseible.earth/answers/brsr-supplier-questionnaire-field-by-field)

Sources: [SEBI circular SEBI/HO/CFD/CMD-2/P/CIR/2021/562, 10 May 2021: Business Responsibility and Sustainability Reporting](https://www.sebi.gov.in/legal/circulars/may-2021/business-responsibility-and-sustainability-reporting-by-listed-entities_50096.html), [SEBI LODR Master Circular, 11 July 2023, Annexure 16 (BRSR format)](https://www.sebi.gov.in/sebi_data/attachdocs/jul-2023/1689087475880.pdf)

Last reviewed 2026-10-23.