SEBI Mandates Business Responsibility & Sustainability Reporting for Top 1,000 Listed Entities
The Securities and Exchange Board of India (SEBI) has made Business Responsibility and Sustainability Reporting (BRSR) mandatory for the top 1,000 listed entities in India. This move aims to enhance transparency and help market participants identify sustainability-related risks and opportunities. The BRSR framework, introduced in 2021, replaces the earlier Business Responsibility Reports (BRR) from 2012 and requires disclosure on environmental, social, and governance metrics.
BRSR is structured around nine thematic pillars of business responsibility, including conduct and governance, employee well-being, stakeholder responsiveness, human rights, environmental protection, and consumer engagement. 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 businesses in benchmarking their ESG performance and integrating sustainability into business operations.
Transparency is becoming the new paradigm for responsible reporting and social responsibility in businesses. Studies show that businesses focused on sustainability have emerged as profitable despite the pandemic. Integrating sustainability into a company's overall strategy can lead to financial savings in the long run.
The BRSR framework is expected to bring greater transparency and enable market participants to make informed decisions. It encourages businesses to adopt responsible business practices, reducing risks and enhancing long-term profitability.
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