Business Responsibility and Sustainability Reporting (BRSR): An Overview of Mandatory ESG Disclosure for Top Listed Entities in India

Link for SEBI disclosure format Weblink

Business Responsibility and Sustainability Reporting (BRSR) is a mandatory reporting requirement for the top 1000 listed entities in India. The initiative was introduced by the Securities and Exchange Board of India (SEBI) in 2012. The?BRSR?framework aims to encourage listed companies to adopt sustainable business practices and disclose information related to their environmental, social, and governance (ESG) performance.

The BRSR framework is based on the principle of “comply or explain”: Listed entities are required to disclose their ESG-related information as per the prescribed format or provide a valid reason for not doing so.

The BRSR reporting requirement is aligned with global sustainability reporting frameworks, such as the?Global Reporting Initiative (GRI)?and the United Nations Global Compact (UNGC). It aims to enhance the quality of sustainability reporting by listed entities in India.

The?BRSR framework?is aimed at helping entities integrate sustainable and responsible practices into their business operations. The principle-wise Performance Disclosure section of the framework is designed to help entities demonstrate their performance in integrating the principles and core elements with their key processes and decisions.

The information sought is divided into two categories – Essential and Leadership.

Essential indicators are those that are expected to be disclosed by every entity that is mandated to file the BRSR report. These essential indicators are the minimum requirements that entities need to meet to be considered as fulfilling the reporting requirements of the BRSR framework. These indicators provide an overview of the company’s sustainability and responsible business practices. Examples of essential indicators include details of the company’s sustainability policies, goals, and targets; details of the company’s impact on the environment, health, and safety of the employees and other stakeholders; and details of the company’s efforts to promote human rights and support social and economic development.

Leadership indicators, on the other hand, are additional disclosures that go beyond the minimum requirements of the BRSR framework. These indicators are intended for companies that aspire to be leaders in sustainability and responsible business practices. Examples of leadership indicators include details of the company’s efforts to innovate and adopt sustainable and responsible practices; details of the company’s engagement with stakeholders including customers, suppliers, and communities; and details of the company’s efforts to promote inclusive growth and equitable development.

By disclosing both essential and leadership indicators, companies can demonstrate their commitment to sustainable and responsible business practices, as well as showcase their progress and efforts to become leaders in this area. The BRSR Principle-wise Performance Disclosure section is an important tool for companies to communicate their sustainability performance to stakeholders and create greater transparency and accountability in their operations.

For further details on Resurgent’s BRSR Advisory Services, please visit https://www.resurgentindia.com/services/esg-advisory-services and get in touch with us at [email protected]