India's Environmental, Social, and Governance (ESG) landscape is evolving, with investors, businesses, and policymakers increasingly recognizing the importance of incorporating sustainable and responsible practices into business operations. With the Securities Board Exchange of India (SEBI) introducing the Business Responsibility and Sustainability Reporting (BRSR) framework in 2021 as a mandatory disclosure for the top 1000 listed companies, the intention is to align a company’s financial and non-financial disclosures, for increased transparency.
Companies are now required to submit a new report on ESG parameters, namely Business Responsibility and Sustainability Report (BRSR) as opposed to the earlier Business Responsibility Report (BRR), in the following manner :
- Mandatory from FY2022-23: For top 1,000 listed companies by market capitalisation
- Voluntary for FY2021-22: For top 1,000 listed companies by market capitalisation
- Voluntary for other companies: Listed companies (other than top 1,000) and companies which have listed their specified securities on the Small and Medium Enterprises (SME) exchange may voluntarily submit BRSR in place of BRR effective FY2021-22 onwards.
The issue of this fact sheet "Mandatory BRSR reporting for top 1000 listed companies from FY2022-23" aims to summarise the key features of the new report along with highlighting the differences between BRSR and BRR.
