Recently the ‘Business Responsibility and Sustainability Report’ (BRSR) was released. This report will pave the way towards green companies.
- The Federation of Indian Chambers of Commerce and Industry organized an additional event in Glasgow (COP26) to discuss the role of the ‘Business Responsibility and Sustainability Report’ in conducting climate action in India.
- BRSR is a standardized reporting (non-financial parameter) format introduced by SEBI in the year 2021.
- It provides a baseline for comparing environmental, social and governance (ESG) goals in companies and across sectors.
- The non-financial statements of ESGs are issued voluntarily on a large scale.
It has been designed for three purposes:
- Adapting to, and mitigating, the effects of climate change.
- Overall development.
- Striving to achieve a sustainable economy
Currently, the top 1,000 listed entities (by market capitalization) will have to voluntarily disclose the information required under the new standards implemented in the financial year 2021-2022.
Other similar global reporting standards:
Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), Task Force on Climate-Related Financial Disclosure (TCFD) etc.
Significance of BRSR:
- It will provide much needed uniformity, as it draws input from other global sustainability reporting frameworks (GRI, SASB, etc.).
- Strengthen climate commitments, and accelerate forestation and attract green investment to businesses.
Source – The Hindu
