{"id":55309,"date":"2023-04-17T15:29:03","date_gmt":"2023-04-17T09:59:03","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=55309"},"modified":"2023-04-17T15:29:04","modified_gmt":"2023-04-17T09:59:04","slug":"sustainability-reporting-under-brsr-framework-of-sebi","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/sustainability-reporting-under-brsr-framework-of-sebi\/","title":{"rendered":"Sustainability Reporting under BRSR Framework of SEBI"},"content":{"rendered":"\n<p>Sustainability reporting under BRSR enables businesses to disclose their performance and impact metrics regarding various <strong><a href=\"https:\/\/corpbiz.io\/environment-social-and-governance-esg-strategies\">Environment, Social, and Governance<\/a><\/strong> (ESG) parameters. Its purpose is to encourage companies to be more transparent about their risks and opportunities. In 2021, only 20% of the 586 companies assessed in India released sustainability reports, as per a report by <strong>CRISIL<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/en.wikipedia.org\/wiki\/CRISIL\"><strong>[1]<\/strong><\/a><\/sup>. However, 12 new companies have started making these disclosures for the first time, compared to the previous year. Investors and stakeholders tend to favor companies that demonstrate ESG ambitions, thus creating a need for businesses to transparently communicate their plans for achieving sustainability goals.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/sustainability-reporting-under-brsr-framework-of-sebi\/#Process_of_Effective_Sustainability_Reporting\" >Process of Effective Sustainability Reporting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/sustainability-reporting-under-brsr-framework-of-sebi\/#Reporting_Standards_on_Sustainability_Reporting_Under_BRSR\" >Reporting Standards on Sustainability Reporting Under BRSR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/sustainability-reporting-under-brsr-framework-of-sebi\/#Factors_Affecting_Sustainability_Reporting_under_BRSR\" >Factors Affecting Sustainability\nReporting under BRSR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/sustainability-reporting-under-brsr-framework-of-sebi\/#Requirement_of_Sustainability_Reporting_under_BRSR\" >Requirement of Sustainability Reporting under BRSR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/sustainability-reporting-under-brsr-framework-of-sebi\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_of_Effective_Sustainability_Reporting\"><\/span>Process of Effective Sustainability Reporting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Step 1 &#8211; Identify Reporting Requirements<\/strong>: The top\n1000 listed companies in India are required to report under the BRSR framework.\nCompanies should identify the specific reporting requirements and deadlines for\ntheir reporting cycle.<\/p>\n\n\n\n<p><strong>Step 2 &#8211; Defining the Scope<\/strong>: Companies\nshould define the scope of their reporting by identifying the ESG aspects of\ntheir business operations that are relevant to their stakeholders and business\nstrategy.<\/p>\n\n\n\n<p><strong>Step 3 &#8211; Developing Reporting Strategy:<\/strong> Companies\nshould develop a reporting strategy that outlines their approach to reporting\non ESG issues, including selecting reporting frameworks, data collection and\nanalysis, and stakeholder engagement.<\/p>\n\n\n\n<p><strong>Step 4 &#8211; Collect and Analyse Data<\/strong>: Companies\nshould collect and analyse data on their ESG performance, including policies,\npractices, risks, opportunities, and impact. Data should be reported in a\nstructured and consistent manner as a part of Sustainability Reporting under\nBRSR.<\/p>\n\n\n\n<p><strong>Step 5 &#8211; Identify Material ESG Issues: <\/strong>Companies\nshould identify the ESG issues most relevant to their stakeholders and business\nstrategy. Materiality should be based on the issue&#8217;s significance to the\ncompany and its stakeholders, the potential impact on the company&#8217;s operations\nand reputation, and the level of stakeholder concern.<\/p>\n\n\n\n<p><strong>Step 6 &#8211; Develop and Report on ESG Performance:<\/strong> Companies\nshould develop and report on ESG performance, including progress on material\nESG issues. Reporting should be clear, concise, and based on relevant metrics.<\/p>\n\n\n\n<p><strong>Step 7 &#8211; Seek Independent Assurance:<\/strong> Companies\nare encouraged to seek independent third-party assurance of their\nsustainability reporting to enhance credibility and transparency.<\/p>\n\n\n\n<p><strong>Step 8 &#8211; Publish the Report<\/strong>: Companies\nshould publish their sustainability report on their website and the BRSR\nweb-based platform to make it publicly available.<\/p>\n\n\n\n<p><strong>Step 9 &#8211; Monitor and Improve:<\/strong> Companies\nshould monitor and improve their sustainability performance over time by\nsetting targets and tracking progress, engaging stakeholders, and reviewing and\nimproving their reporting processes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reporting_Standards_on_Sustainability_Reporting_Under_BRSR\"><\/span>Reporting Standards on <strong>Sustainability Reporting Under BRSR<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To start with effective sustainability reporting,\nthe first step is to decide how to report on sustainability measures.\nFrameworks provide broad guidelines without imposing specific requirements for\nreporting. At the same time, standards are more well-defined and expected to be\nstrictly followed. Frameworks guide companies, while standards provide specific\ninstructions on what to report.<\/p>\n\n\n\n<p>There are five widely adopted reporting standards:<\/p>\n\n\n\n<ul><li>Global Reporting Initiative\n(GRI)<\/li><li>Sustainability Accounting\nStandards Board (SASB)<\/li><li>Carbon Disclosure Project\n(CDP)<\/li><li>Value Reporting Foundation\n(VRF)<\/li><li>Sustainable Development\nGoals (SDGs)<\/li><\/ul>\n\n\n\n<p>The GRI standards include Universal Standards,\nTopic-specific Standards, and Sector Standards. The SASB approach categorises\nindustries into sectors and provides specific sustainability accounting\ncriteria based on the industry&#8217;s nuances. CDP motivates companies and\ngovernments to disclose their environmental impacts and reduce greenhouse gas\nemissions. The VRF offers a comprehensive suite of resources to help businesses\nand investors understand enterprise value by recognising six distinct but\ninterrelated capitals. Lastly, the SDGs consist of 17 goals and 169 targets\nwith 230 agreed-upon indicators. Companies should understand the SDG framework\nand industry-specific standards to align with the SDGs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Factors_Affecting_Sustainability_Reporting_under_BRSR\"><\/span>Factors Affecting <strong>Sustainability\nReporting under BRSR<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The factors\nare as follows:<\/p>\n\n\n\n<ol><li><strong>Applicability<\/strong>: The BRSR framework applies to all listed companies, including those not required to prepare a separate sustainability report.<\/li><li><strong>Reporting Requirements<\/strong>: The BRSR requires companies to report on various sustainability parameters, including environmental, social, and governance (ESG) aspects. The report should cover areas such as energy conservation, water management, waste management, social responsibility, employee welfare, and governance practices.<\/li><li><strong>Disclosure Standards<\/strong>: The Sustainability Reporting under BRSR requires companies to use established standards and frameworks like GRI and SASB to report on their sustainability initiatives. The report should also describe how the company has applied these standards and frameworks.<\/li><li><strong>Reporting Format<\/strong>: The BRSR requires companies to report on their sustainability initiatives in a standalone report or as part of their annual report. The report should be published on the company&#8217;s website and submitted to the stock exchanges where the company is listed.<\/li><li><strong>Assurance<\/strong>: The BRSR requires companies to obtain independent assurance on their sustainability report from a qualified assurance provider. The assurance provider should be registered with the National Accreditation Board for Certification Bodies (NABCB).<\/li><li>Compliance: The BRSR framework is mandatory, and companies are required to comply with the reporting requirements. Non-compliance can result in penalties, including fines and a possible suspension of trading.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Requirement_of_Sustainability_Reporting_under_BRSR\"><\/span>Requirement of <strong>Sustainability Reporting under BRSR<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table class=\"wp-block-table table table-bordered\"><tbody><tr><td>\n  <strong>Aspect<\/strong>\n  <\/td><td>\n  <strong>Description<\/strong>\n  <\/td><\/tr><tr><td>\n  Reporting Requirement\n  <\/td><td>\n  Mandated for top 1000 listed companies in India\n  by SEBI\n  <\/td><\/tr><tr><td>\n  Reporting Format\n  <\/td><td>\n  Annual report, web-based platform or standalone\n  report\n  <\/td><\/tr><tr><td>\n  Reporting Period\n  <\/td><td>\n  Annual, covering the financial year\n  <\/td><\/tr><tr><td>\n  Scope\n  <\/td><td>\n  Environmental, social and governance (ESG)\n  aspects of business operations\n  <\/td><\/tr><tr><td>\n  Disclosure\n  <\/td><td>\n  Companies must disclose ESG policies, practices,\n  risks, opportunities and impact.\n  <\/td><\/tr><tr><td>\n  Materiality\n  <\/td><td>\n  Companies must identify and report on material\n  ESG issues\n  <\/td><\/tr><tr><td>\n  Assurance\n  <\/td><td>\n  Optional, but encouraged for independent\n  third-party assurance\n  <\/td><\/tr><tr><td>\n  Reporting Framework\n  <\/td><td>\n  Companies may use globally recognised\n  frameworks, such as GRI or SASB, or the BRSR format.\n  <\/td><\/tr><tr><td>\n  Public Disclosure\n  <\/td><td>\n  Companies must make their sustainability reports\n  publicly available on their website and the BRSR web-based platform.\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the Sustainability Reporting under BRSR, companies must report annually on their ESG policies, practices, risks, opportunities, and impact on identifying and reporting material ESG issues. The reporting may be in the form of an annual report, web-based platform, or standalone report. Companies are encouraged to seek independent third-party assurance of their sustainability reporting. Sustainability Reporting under BRSR provides stakeholders with information to assess companies&#8217; sustainability practices and make informed decisions. It also enables companies to demonstrate their commitment to responsible and sustainable business practices, which can enhance their reputation and competitiveness in the long term.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/esg-reporting-is-it-mandatory-in-india\/\">ESG Reporting: Is It Mandatory In India?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sustainability reporting under BRSR enables businesses to disclose their performance and impact metrics regarding various Environment, Social, and Governance (ESG) parameters. Its purpose is to encourage companies to be more transparent about their risks and opportunities. In 2021, only 20% of the 586 companies assessed in India released sustainability reports, as per a report by [&hellip;]<\/p>\n","protected":false},"author":52,"featured_media":55327,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2093],"tags":[3459],"acf":{"service_id":"584"},"authorName":"Suchandra Mukherjee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/01\/MicrosoftTeams-image-52-1.jpg","authorDescription":"Suchandra is a 5th Year Law Student, pursuing Law from University of Mumbai. She has published 100+ Articles and Blogs on Legal Portals and International Multidisciplinary peer-reviewed journals. She is adept at legal research and can write fast SEO-friendly creative articles and blog posts on legal topics. She loves to paint and watch thriller movies in her free time.","postViews":2808,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/55309"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/52"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=55309"}],"version-history":[{"count":3,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/55309\/revisions"}],"predecessor-version":[{"id":55312,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/55309\/revisions\/55312"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/55327"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=55309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=55309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=55309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}