SEBI Introduces Mandatory ESG Reporting for Top 1,000 Indian Companies
The Securities and Exchange Board of India (SEBI) has introduced the Business Responsibility and Sustainability Reporting (BRSR) framework, replacing the Business Responsibility Report (BRR). This new mandate, effective March 2021, requires the top 1,000 publicly listed companies in India to disclose detailed ESG performance data annually, enhancing transparency and comparability.
BRSR focuses on nine thematic pillars of business responsibility, including governance, employee well-being, human rights, and environmental impact. It encompasses corporate strategy, risk management, performance, and communication, helping to address reputational and regulatory risk. The Confederation of Indian Industry (CII) has launched training programs to assist companies in benchmarking their ESG performance and integrating sustainability into operations.
Studies show that sustainable businesses have emerged as profitable, even during the pandemic. They attract investors and build better brand equity. BRSR is expected to bring greater transparency, enabling market participants to identify sustainability-related risks and opportunities. Businesses are recognised as key drivers in achieving global climate goals, with companies focused on sustainability outperforming others. Integrating sustainability into a company's overall strategy can lead to financial savings in the long run and attract talent.
The BRSR framework is a significant step towards promoting responsible reporting and social responsibility in businesses. It mandates transparency in ESG performance for the top 1,000 listed entities in India, fostering a more sustainable and responsible business environment.
