This article discusses the new reporting system introduced by SEBI, known as Business Responsibility and Sustainability Reporting (BRSR). This system aims to enhance corporate transparency and address sustainability-related risks. BRSR mandates comprehensive disclosures on social metrics, employee welfare, community impact, and consumer data, aligning with global ESG frameworks like GRI, TCFD, and SASB.
With increasing global focus on sustainability, countries like India are adopting measures to meet climate goals, including the COP26 targets. The 'Business Responsibility and Sustainability Report' is a key initiative requiring annual release by companies to demonstrate their commitment to sustainability.
Initially launched in 2009 with CSR guidelines, India progressed to the Business Responsibility Reporting Framework endorsed by SEBI in 2012. The framework expanded in 2019 and was further updated in 2021 to integrate Sustainability as a core component. BRSR now applies to India's top 1000 listed companies.
The BRSR framework covers nine core principles focusing on integrity, sustainable products, employee welfare, stakeholder engagement, human rights, environmental protection, policy transparency, inclusive growth, and consumer responsibility. It requires extensive data reporting across these areas.
SEBI's 2021 circular made BRSR mandatory from 2022, replacing the earlier Business Responsibility Report (BRR) system. This shift aims to enhance environmental stewardship and ethical business practices among companies.
The BRSR framework represents a significant step towards integrating ESG considerations into corporate governance in India. It enhances transparency, accountability, and sustainability practices, aligning with global standards and supporting India's climate commitments.
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