Investors are watching more than your bottom line – SEBI BRSR ensures they see your impact too.

With SEBI BRSR framework, sustainability is no longer optional – it’s a regulatory imperative for India Inc.

Securities and Exchange Broad of India (SEBI) – Regulator of the Indian Securities and commodities market under the administrative domain of Ministry of Finance within the Government of India

BRSR Aim – to nudge India Inc., to reduce, improve and report environmental and social impacts

1. National Voluntary Guidelines NVG – 2011: Aimed to bring social, environment and economic responsibilities to the forefront

2. Business Responsibility Report BRR– 2012: •Mandatory for Top 100 listed companies

•In 2015, BRR was made applicable to Top 500 listed companies

•In 2019, BRR was made applicable to Top 1000 listed companies

3. Business Responsibility and Sustainability Reporting (BRSR) – 2020

  In 2021, BRSR was made applicable to Top 1000 listed companies – voluntary for FY22 and mandatory from FY23 

BRSR CORE – 2023 ( Is a subset of BRSR) – BRSR Core, the revised framework was introduced with more expansive in its scope ; Accounts for impact the value chain has on the environment

BRSR Framework – ESG Disclosure – Integrates several reporting frameworks and standards. Has 3 reporting sections :

•Section A – General Disclosures

I – Details of the listed entity

II – Products / Services

III – Operations

IV – Employees

V – Holding, Subsidiary and Associate Companies

VI – CSR Details

VII – Transparency and Disclosures Compliances

•Section B – Management and processes Disclosures

•Policy and Management Processes

•Governance, Leadership and oversight

•Section C – Principle wise performance

BRSR Section C – Principle wise performance – 9 principles

1. Integrity and Ethics – Training & awareness, Conflict of interest, Disciplinary actions, Penalty & punishment. Essential Indicators – 9Q ; Leadership Indicators – 2Q

2. Sustainable Products – Sustainable sourcing, Reuse/recycle/disposal, Lifecycle assessment, Investment in ESG technologies. Essential Indicators – 4Q ; Leadership Indicators – 5Q

3. Employee Well being – Insurance & retirement benefits, Equal opportunity , Grievance redressal, Health & safety, Incident reporting. Essential Indicators – 15Q ; Leadership Indicators – 6Q

4. Stakeholder Interest – Consultation between shareholders & board, identification of stakeholders & marginalised/vulnerable groups, Frequency of engagement. Essential Indicators – 2Q ; Leadership Indicators – 3Q

5. Human Rights – Training of human rights, Wages & remuneration, Assessment on human rights, Complaints & redressal mechanism. Essential Indicators – 11Q ; Leadership Indicators – 5Q

6. Environment – Energy consumption, Water withdrawn and discharged, Air & GHG emissions, Waste generation & disposal, Business continuity plan. Essential Indicators – 13Q ; Leadership Indicators – 7Q

7. Regulatory Policy – Affiliation with trade & industry chambers/associations, Details of anti-competitive conduct, Publicly policy advocated. Essential Indicators – 2Q ; Leadership Indicators – 1Q

8. Inclusive Growth – Preferential procurement policy, CSR projects, Benefits from Intellectual property, Social impact assessment. Essential Indicators – 5Q ; Leadership Indicators – 6Q

9. Consumers and IT – Cyber security, Data Privacy, Data breaches, Consumer complaints, Consumer education and awareness. Essential Indicators – 7Q ; Leadership Indicators – 4Q

BRSR reporting	BRSR Core Assurance	Applicability	Fiscal year
Top 1000	Top 150	Mandatory	FY24
Top 1000	Top 250	Mandatory( comply or explain basis)	FY25
Top 1000	Top 500	Mandatory	FY26
Top 1000	Top 1000	Mandatory	FY27

BRSR Core companies shall provide limited assurance from an independent party on a comply-or-explain basis from FY25

Independent party should: 1 – Have requisite expertise 2 – Have no conflict of interest 3- Not provide non-audit / non-assurance related services 4 – No consulting services to the company

BRSR CORE is a subset of BRSR

BRSR CORE has a total of 9 sections and all the sections are cross referenced to the BRSR

1. Greenhouse gases – scope 1 & 2

2. Water Footprint

3. Energy Footprint

4. Embracing circularity – details related to waste management by the entity

5. Enhancing employee wellbeing and safety

6. Enabling gender diversity in business

7. Enabling inclusive development

8. Fairness in engaging with customers and suppliers

9. Openness of business

Disclosures for the value chain shall be made by the listed companies as per BRSR CORE 1 – Value Chain – Top Upstream and downstream partners cumulatively comprising of 75% of its purchases / sales by value respectively. 2 – Reporting can be segregated for upstream and downstream partners or can be reported on an aggregate basis. 3 – Scope of reporting and any assumptions or estimates, if any, to be clearly disclosed

  Advantages of BRSR & BRSR CORE – Drive lasting success, Compelling short-and long-term benefits, Improved stakeholder relationship, Uncover new opportunities, Long term value creation, Enhance business value, Enhanced innovation and responsible investments, Greater access to capital investment, Meaningful decision making, Improve market positioning, Attract top talent, Reducing risks, Foster better corporate citizenship, Value creation by right National guidelines for Responsible Business Conduct (NGRBC) proposition, Distinct market positioning, Complying with regulatory norms