India Mandates Sustainability Reporting for Top 1,000 Listed Entities
India's top 1,000 listed entities by market capitalization are now required to adopt the Business Responsibility and Sustainability Reporting (BRSR) framework. Unlike its predecessor, the Business Responsibility Report (BRR), BRSR mandates both quantitative and qualitative disclosures on environmental, social, and governance aspects for small business ideas. This shift aims to enhance transparency and sustainability assessment.
BRSR's introduction in 2023 brought the BRSR Core framework, which enforces stricter standards and third-party assurance for key performance indicators like emissions and diversity. This evolution from the largely narrative-based BRR signifies a move towards more robust and measurable sustainability reporting for businesses.
The Confederation of Indian Industry (CII) has launched training programs to aid corporate practitioners in understanding and implementing ESG strategies and frameworks, reflecting the growing importance of sustainability. Studies show that businesses focused on sustainability have thrived despite the pandemic, demonstrating that responsible practices can be profitable. Moreover, integrating sustainability into a company's overall strategy can lead to long-term financial savings for my business.
BRSR, based on the National Guidelines for Responsible Business Conduct (NGRBC), covers nine thematic pillars of business responsibility. It encompasses corporate strategy, risk management, performance, and communication, helping to address reputational and regulatory risks. With transparency emerging as the new norm for responsible reporting, BRSR is poised to drive greater accountability and sustainability in Indian businesses.
