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.
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations
Summary
Filing of BRSR is be mandatory from the financial year 2022-2023 for the top 1000 listed companies (by market capitalisation) and replace the existing BRR. Filing of BRSR is voluntary for the financial year 2021-22.
According to Annex II, entities shall disclose Scope 1 and Scope 2 GHG emissions. They shall classify risk/opportunity as environment or social and provide its description. Climate change risk can include impact on operations, worker health, demand for products or services etc. Climate change opportunities can include cost savings through resource efficiency, development of new products and services, access to new markets etc. Entities shall also report the total waste generated in its activities, with a break-up as per the categories specified in various Waste Management Rules.
Documents
Document
Topicsā
Beta
Supporting documentation
Regulation
About this policy
Year
2021
Most recent update
10/05/2021
Geography
Response areas
Adaptation, Mitigation
Sectors
Economy-wide
Topics
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Ā Topics mentioned most in this policyĀ Ā Beta
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Group
Topics
Target
Policy instrument
Risk
Impacted group
Just transition
Renewable energy
Fossil fuel
Greenhouse gas
Economic sector
Public finance actor
Note
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