Business Responsibility Sustainability Reporting (BRSR) is a voluntary framework for companies to report their social, environmental, and economic impacts on society. It enables companies to be transparent and accountable about their sustainable practices and contributes to the sustainable development of the economy.

BRSR is important because it helps companies to identify and mitigate potential risks, improve their reputation, and enhance their relationship with stakeholders. BRSR also contributes to the overall sustainable development of the economy by encouraging companies to adopt responsible and sustainable practices.

BRSR is applicable to all listed companies, as well as unlisted companies with a net worth of Rs. 500 crore or more, or a turnover of Rs. 1,000 crore or more, or a net profit of Rs. 5 crore or more during any financial year.

BRSR has four components: governance and ethics, social, environmental, and economic. Each component has specific disclosures that companies need to report on.

BRSR is not mandatory for companies, but it is encouraged by the Securities and Exchange Board of India (SEBI) and the Ministry of Corporate Affairs (MCA) for all eligible companies to report.

The reporting cycle for BRSR is annually. The reporting year runs from April to March.

There are no specific penalties for non-compliance with BRSR. However, companies that do not report under BRSR may face reputational risks, and may not be able to access certain capital markets or investors who prioritize sustainable practices

BRSR is unique in that it is a voluntary framework specific to Indian companies, and it is designed to align with Indian laws, regulations, and social and environmental priorities. BRSR also focuses on governance and ethics, which is not a component of all sustainability reporting frameworks.

Companies can prepare for BRSR reporting by understanding the framework and its components, engaging with stakeholders, conducting assessments of their social, environmental, and economic impacts, and implementing sustainable practices and policies.

BRSR reporting can benefit companies by enhancing their reputation, improving their relationship with stakeholders, identifying potential risks and opportunities, and promoting sustainable practices and policies. BRSR reporting can also contribute to the overall sustainable development of the economy.