Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations

The Securities and Exchange Board of India (SEBI) released circular SEBI/HO/CFD/CMD-2/P/CIR/2021/562 to introduce new reporting requirements on ESG parameters called the Business   Responsibility and Sustainability Report (BRSR). The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 101 of the Listing Obligations and Disclosure Requirements Regulations of 2015.

The BRSR is accompanied with a guidance note to enable the companies to interpret the scope of disclosures. This should enable a better quantification and standardisation of disclosures of ESG parameters to enable comparability. Further to this, the BRSR encourages meaningful engagement with stakeholders, including on social and environmental impacts.

The BRSR seeks disclosures from listed entities on their performance against the principles of the National Guidelines on Responsible Business Conduct. Regular reporting on essential indicators is mandatory while report on leadership indicators is voluntary. Entities already preparing disclosure using international frameworks (GRI,  SASB,  TCFD or Integrated  Reporting) are allowed to cross-reference the disclosures.