There is increasing awareness among stakeholders concerning sustainable operations and ethical conduct of businesses. Sustainability (ESG) Reporting by companies is a rapidly evolving field with a variety of reporting frameworks. The range of ESG metrics and disclosure frameworks used is vast and varies by sector, size and complexity, as well as location The Kingdom of Bhutan has been following the development paradigm based on the philosophy of ‘Gross National Happiness’ (GNH) since the early 1970s. The country has incorporated sustainable development into its development plans, focusing on energy, transportation, and agriculture. Bhutan's unique approach to sustainable development emphasizes ecological and cultural preservation, aiming to minimize its ecological footprint. Bhutan remains highly vulnerable to climate change hazards associated with its fragile mountain ecosystem. Climate change can have an adverse impact on hydropower generation which is the largest contributor the economy. In addition, the terrain and livelihoods can be sensitive to climate change phenomenon like flash floods, glacial lake outbursts and variations in rainfall. GHG emissions are on the rise due to the inefficient use of energy. Sustainability reporting in Bhutan is still in its developing stages but is steadily gaining momentum. The initiative to introduce a framework for sustainability reporting in Bhutan is being driven by the Royal Securities Exchange of Bhutan (RSEB).  Currently the RSEB does not have requirements for an annual sustainability report from the listed companies. It also does not offer written guidelines or training for ESG reporting.  This study analyses the ESG metrics in the latest annual reports of the companies listed on RSEB and benchmarks them against the BRSR reports filed by Indian companies in the same industry sector. The analysis highlights the risks of ESG impacts for the industry sector, and how companies have taken steps to mitigate them. The study finds the ESG reporting in Bhutan is in a nascent stage and does not have a framework for reporting ESG metrics. As Bhutan becomes more industrialized and more urbanized, it faces increased risk of harmful environmental impact. An early initiative to ensure that the companies manage the ESG risks and share information transparently through reporting confirming toa accepted international frameworks would allow Bhutan to reduce the negative impacts. Bhutan has to develop an ESG reporting framework which is consistent with its GNH philosophy and unique socio-cultural ecosystem.