Business responsibility and sustainability reporting (BRSR)
Earlier, SEBI vide Circular no. CIR/CFD/CMD/10/2015 dated November 04, 2015 has prescribed the format for the Business Responsibility Report (BRR) in respect of reporting on ESG
(Environment, Social and Governance) parameters by listed entities.
It has now been decided to introduce new reporting requirements on ESG parameters called Business Responsibility and Sustainability Report (BRSR).
The BRSR is intended towards having quantitative and
standardized disclosures on ESG parameters to enable comparability across
companies, sectors and time. Such disclosures will be helpful for investors to make better investment decisions. The BRSR
shall also enable companies to
engage more meaningfully
with their stakeholders, by encouraging them to
look beyond financials and towards
social and environmental impacts.
BRSR
is divided into 3 sections:
Section A : General Disclosures
Section B : Management and Process Disclosures
Section C :
Principle wise Performance Disclosures
PRINCIPLE
1 : Businesses should conduct and
govern themselves with integrity, and in a manner that is Ethical, Transparent
and Accountable.
PRINCIPLE 2 : Businesses
should provide goods and services in a manner that is sustainable and safe.
PRINCIPLE 3 :
Businesses should respect and promote the well-being of all employees,
including those in their value chains.
PRINCIPLE
4 : Businesses should respect the
interests of and be responsive to all its stakeholders.
PRINCIPLE
5 : Businesses should respect and
promote human rights.
PRINCIPLE
6 : Businesses should respect and
make efforts to protect and restore the environment.
PRINCIPLE
7 : Businesses, when engaging in
influencing public and regulatory policy, should do so in a manner that is
responsible and transparent.
PRINCIPLE
8 : Businesses should promote
inclusive growth and equitable development.
PRINCIPLE
9 : Businesses should engage with and
provide value to their consumers in a responsible manner.
The BRSR is accompanied with a guidance note to enable the companies to interpret the scope of disclosures. The format of the BRSR and the guidance note are
detailed in Annexure I (BUSINESS
RESPONSIBILITY & SUSTAINABILITY REPORTING FORMAT) and Annexure II (GUIDANCE NOTE FOR BUSINESS RESPONSIBILITY
& SUSTAINABILITY REPORTING FORMAT) respectively.
Applicability:
with effect from the financial year 2022-2023, filing
of BRSR shall be mandatory for the top
1000 listed companies (by market capitalization) and shall replace the existing
BRR. Filing of BRSR is voluntary for the financial year 2021-22.
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