Jan 24, 2025
India's corporate landscape is evolving, marked by an increasing emphasis on sustainable and responsible business practices. This shift has been driven by the need to address environmental, social, and governance (ESG) issues that impact not just businesses but society at large. At the forefront of this transformation is the Business Responsibility and Sustainability Reporting (BRSR) framework—a pioneering initiative designed to promote transparency, accountability, and sustainable development.
The Business Responsibility and Sustainability Report (BRSR) is an evolution of the previous Business Responsibility Report (BRR) framework, offering a more detailed and structured approach to ESG reporting. It aims to provide stakeholders with comprehensive insights into a company's ESG performance, thereby encouraging businesses to integrate sustainability into their core strategies.
BRSR offers numerous benefits for both companies and stakeholders.
Companies can leverage BRSR to:
Stakeholders benefit from:
The BRSR framework is structured into three main sections:
BRSR mandates reporting on 140 questions categorized into essential and leadership indicators. The essential indicators (98) are mandatory, ensuring core sustainability aspects are reported. Leadership indicators (42) are voluntary, allowing companies to showcase advancements in specific areas. This balanced approach fosters comprehensiveness while encouraging innovation.
The introduction of BRSR heralds a new era for corporate sustainability in India, with several promising developments on the horizon:
Assurance Providers
Conduct audits to ensure accuracy and reliability of ESG disclosures.
Advisors
Guide companies on ESG best practices and reporting standards.
Risk Managers
Identify and assess ESG-related risks to enhance risk management strategies.
Compliance Monitors
Ensure companies adhere to relevant ESG regulations and reporting requirements.
Data Analysts
Analyze ESG data to provide actionable insights for decision-making.
Ethical Leaders
Promote ethical practices and corporate responsibility within organizations.
In conclusion, the BRSR framework serves as a powerful tool for driving positive change in Indian corporations. By mandating comprehensive ESG disclosures, it not only enhances transparency and accountability but also drives operational efficiency and improves risk management. As more companies embrace this framework, India is poised to become a global leader in responsible business practices, paving the way for a sustainable and inclusive future. Chartered Accountants play a crucial role in verifying, guiding, and enhancing the integrity of ESG reporting, helping companies navigate the complexities of sustainability disclosures.
“The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received, or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation.”
Author: Bhairavi B Yellurkar
Prepared On: 24/01/25
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