GS TIMES STAFF
The Securities and Exchange Board of India (SEBI) on May 10, 2021 issued a circular notifying new disclosure norms on Business Responsibility and Sustainability reporting for the top 1,000 listed companies by market cap by FY23.
- Such a reporting will now be under a new Business Responsibility and Sustainability Report (BRSR) format.
- Now, companies will have to disclose the gender and social diversity of employees, including measures for differently-abled employees and workers, occupational health and safety and trainings.
- According to the SEBI, in recent times, adapting to and mitigating climate change impact, inclusive growth and transitioning to a sustainable economy have emerged as major issues globally. There is an increased focus of investors and other stakeholders seeking businesses to be responsible and sustainable towards the environment and society.
- Under BRSR, listed entities need to disclose about an overview of the entity’s material ESG (environmental, social and governance) risks and opportunities, approach to mitigate or adapt to the risks along with financial implications of the same.
- The BRSR seeks disclosures from listed entities on their performance against the nine principles of the ‘National Guidelines on Responsible Business Conduct’(NGBRCs)and reporting under each principle is divided into essential and leadership indicators.
- SEBI had prescribed the format for the Business Responsibility Report (BRR) in respect of reporting on ESG (Environment, Social and Governance) parameters by listed entities on November 04, 2015.
