SEBI issues reporting requirements for sustainability in the Business Responsibility and Sustainability Report (BRSR)
The Securities and Exchange Board of India (SEBI) with its circular has decided to introduce new requirements for business sustainability reporting by listed entities in order to encourage businesses to go beyond regulatory financial compliance and report on their social and environmental impacts.
According to the new format, reports must include an overview of the ESG risks and opportunities, a strategy for mitigating or adapting to the risks, environmental disclosures (resource usage of energy and water, air pollutant and greenhouse gas emissions), as well as social disclosures (measures for differently-abled employees and workers, welfare benefits to permanent and contractual employees/workers), or disclosures on Social Impact Assessments (SIA), Corporate Social Responsibility etc.
The BRSR will be voluntary in FY 2021–22 and mandatory in FY 2022–23 for the top 1000 listed entities. The framework would replace the existing BRR framework in practice.
