BRSR stands for Business Responsibility & Sustainability Reporting. It's a framework mandated by the Securities and Exchange Board of India (SEBI) for certain listed companies to disclose their environmental, social, and governance (ESG) performance.

  • Mandatory - Currently, the top 1000 listed companies by market capitalization in India (as of March 31st, 2023) are required to file BRSR reports.
  • Voluntary - Other listed companies can choose to submit BRSR reports voluntarily from FY 2021-22 onwards.

The BRSR framework covers a wide range of ESG aspects, including:

  • Environment: Energy consumption, greenhouse gas emissions, waste management, water usage, biodiversity impact.
  • Social: Employee relations, diversity & inclusion, human rights, community engagement, product safety.
  • Governance: Corporate governance practices, board composition, anti-corruption measures, risk management.

Companies can benefit from BRSR by building trust with stakeholders, attracting socially responsible investors, and gaining a competitive advantage. BRSR also helps companies identify areas for improvement in their sustainability practices.

  • For mandatory companies, the report needs to be submitted as part of the annual report for FY 2023-24, due by July 31st, 2024.
  • Voluntary companies can submit any time.

  • SEBI provides a standardized format with specific indicators to be reported on.
  • Additionally, companies can adopt globally recognized frameworks like GRI, CDP, or SASB for more comprehensive reporting.

  • Market Capitalization Ranking: Check your company's rank in terms of market capitalization as of March 31st, 2023. If your company falls within the top 1000 listed companies based on that ranking, then BRSR is mandatory for you.
  • SEBI List: Refer to the official list of top 1000 companies by market capitalization published by SEBI. This list should be available on their website: sebi.gov.in

Even if BRSR isn't mandatory for your company, adopting sustainable practices and reporting your ESG performance can offer several benefits like improved brand reputation, attracting investors, and boosting efficiency.

Non-compliant companies may face penalties imposed by SEBI.

Yes, several consulting firms and service providers offer expertise in ESG reporting and can assist companies with BRSR compliance.

The BRSR report is not directly submitted anywhere. BRSR reporting happens through the annual report. The BRSR information must be integrated into your company's annual report. There's no separate upload or filing process for the BRSR data.

ESG stands for Environmental, Social, and Governance. It refers to a set of criteria used to assess a company's or organization's performance in three key areas: environmental impact, social responsibility, and governance practices.

ESG factors are important because they provide a framework for evaluating a company's sustainability, ethical practices, and long-term impact on the environment, society, and corporate governance.

The 'Environmental' aspect of ESG evaluates a company's impact on the environment. It includes considerations such as climate change, carbon emissions, water usage, waste management, and conservation efforts.

The 'Social' aspect of ESG focuses on a company's impact on people and communities. It includes factors like labor practices, human rights, diversity and inclusion, employee well-being, community relations, and customer satisfaction.

The 'Governance' aspect of ESG examines the company's governance structure, policies, and practices. It includes board composition, executive compensation, shareholder rights, ethical business practices, and transparency in financial reporting.

ESG is used by a wide range of stakeholders, including:

Investors: Many investors are increasingly using ESG factors to make investment decisions.

Companies: Companies use ESG to assess their own risks and opportunities, improve their sustainability performance, and attract investors and customers.

Governments: Governments are increasingly using ESG factors to regulate businesses and promote sustainable development.

Non-profit organizations: Non-profits use ESG to hold businesses accountable and advocate for positive change.

ESG guidelines are not universally mandated by a single global authority. However, regulatory bodies in different countries may develop and implement their own guidelines, and companies may voluntarily adhere to international standards.

No, ESG considerations are relevant for entities of all sizes across various industries. Small and medium-sized enterprises (SMEs) are increasingly recognizing the importance of integrating sustainable and responsible practices. They also wish to be part of ecosystem followed by large entities.

Start by assessing your organization's current practices in environmental impact, social responsibility, and governance. Identify areas for improvement, set goals, and consider adopting reporting frameworks to communicate your ESG efforts to stakeholders.