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BRSR Core: Enabling BRSR Assurance and Value Chain Disclosures

July 25, 2023 by InCorp Advisory

Reading Time: 5 minutes

In order to keep pace with the global momentum in ESG disclosures, there is gradual yet pragmatic push by Government of India for adoption of responsible and sustainable business practices. The disclosure boundary on sustainable performance by corporates is thus steadily growing. The erstwhile BRR gradually culminated into BRSR to incorporate the current global practices in non-financial sustainability reporting based on the NGRBCs.

Introduction
Nine Attributes Of BRSR Core
Changes In The Extant BRSR To Incorporate BRSR Core KPIs
Criteria When Selecting BRSR Core Assurance Provider
Conclusion
Why Choose InCorp?
FAQs

Introduction

SEBI had mandated top 1,000 listed entities (by market capitalisation) to file BRSR (“extant BRSR”) as part of the Annual Report with SEBI from FY 2022-23 onwards. In February 2023, SEBI issued a consultation paper to widen the periphery of ESG disclosures and proposed phased manner of applicability of BRSR Core, value chain disclosure and assurance thereof.

SEBI through a notification dated 14 June 2023 amended the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) to introduce the BRSR Core and BRSR Core for a company’s value chain. Subsequently, on 12 July 2023, SEBI issued the framework (“the framework”) prescribing the disclosure and assurance requirements for BRSR Core, ESG disclosures for value chain, and assurance requirements.

In the sections below, we intend to give our synopsis on the framework as issued by SEBI vide Circular no. SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated 12 July 2023).

The framework enumerates disclosure requirements and assurance applicability in a glide path and can be divided into THREE categories:

BRSR Core (sub-set of extant BRSR)
Updated BRSR (extant BRSR + BRSR Core)
BRSR Core for Value Chain (Cumulatively comprising 75% of its purchases / sales (by value) by the top upstream and downstream value chain partners of a listed entity)

Categories	Financial Year	Disclosure Requirements	Assurance Requirements	Applicability
Updated BRSR	FY 2023-24	Top 1000 Listed Companies by Market Capitalisation	Top 150 Listed Companies by Market Capitalisation	Reasonable Assurance of BRSR Core
	FY 2024-25		Top 250 Listed Companies by Market Capitalisation	Reasonable Assurance of BRSR Core
	FY 2025-26		Top 500 Listed Companies by Market Capitalisation	Reasonable Assurance of BRSR Core
	FY 2026-27		Top 1000 Listed Companies by Market Capitalisation	Reasonable Assurance of BRSR Core
BRSR Core for Value Chain*	FY 2024-25	Top 250 Listed Companies by Market Capitalisation -Disclosures for value chain – cumulatively comprising 75% of its purchases / sales (by value) top upstream and downstream partners of a listed entity on COMEX basis		–
BRSR Core for Value Chain*	FY 2025-26 onwards	–	Top 250 Listed Companies by Market Capitalisation – on COMEX basis	Limited Assurance of BRSR Core

* Reporting may be segregated for upstream and downstream partners or can be reported on an aggregate basis
* Scope of reporting and any assumptions or estimates, if any, should be clearly disclosed

Nine Attributes of BRSR Core

Changes in the extant BRSR to incorporate BRSR Core KPIs

* New Insertion in Essential Indicator (N)
* Transposition from Leadership to Essential Indicator (T)

Principles	Parameters	Delta	Related Attribute of BRSR Core
Principle 1 – Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable	Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured) for CY and PY	N	Fairness in Engaging with Customers and Suppliers
	Concentration of purchases and sales with trading houses, dealers, and related parties along-with loans and advances & investments, with related parties for CY and PY	N	Open-ness of Business
Principle 2 – Businesses should provide goods and services in a manner that is sustainable and safe	No Change
Principle 3 – Businesses should respect and promote the well-being of all employees, including those in their value chains	Spending on measures towards well-being of employees and workers (including permanent and other than permanent) for CY and PY	N	Enhancing Employee Wellbeing and Safety
Principle 4 – Businesses should respect the interests of and be responsive to all its stakeholders	No Change
Principle 5 – Businesses should respect and promote human rights	Gross wages paid to females as % of total wages paid by the entity for CY and PY	N	Enabling Gender Diversity in Business
	Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013	N	Enabling Gender Diversity in Business
Principle 6 – Businesses should respect and make efforts to protect and restore the environment	Details of total energy consumed (in Joules or multiples) from renewable and non-renewable sources, Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) and Energy intensity in terms of physical output	T	Energy footprint
	Water intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) and water intensity in terms of physical output	N	Water footprint
	Details related to water discharged for the current and previous financial year	T	Water footprint
	With respect to the disclosure of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, the listed entity is also required to disclose the Total Scope 1 and Scope 2 emission intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) and in terms of physical output	N	Greenhouse gas footprint and water footprint
	Waste intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) and waste intensity in terms of physical output	N	Embracing circularity – details related to waste management
Principle 7 – Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent	No Change
Principle 8 – Businesses should promote inclusive growth and equitable development	Percentage of input material (inputs to total inputs by value) sourced from suppliers – Directly from within India (the change is made from input materials sourced from within the district and neighbouring districts)	N	Enabling Inclusive Development
	Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers employed on a permanent or non-permanent / on contract basis) in the rural, semi-urban, urban and metropolitan locations, as % of total wage cost for CY and PY	N	Enabling Inclusive Development
Principle 9 – Businesses should engage with and provide value to their consumers in a responsible manner	Information relating to data breaches	T	Fairness in Engaging with Customers and Suppliers

Criteria when selecting BRSR Core Assurance provider

Expertise: The listed entity’s Board should confirm that the chosen assurance provider for the BRSR Core possesses the necessary competence to execute reasonable assurance.

No Conflict of Interest: The listed entity needs to ascertain that there’s no conflict of interest with the selected assurance provider in charge of assuring the BRSR Core disclosures.

For example, the entity must ensure that neither the assurance provider nor any of its affiliates market their products or offer non-audit/non-assurance services, such as consulting, to the listed entity or its group companies.

Conclusion

An important feature of the circular is its focus on inclusion of value chain disclosures. Though this will contribute to a comprehensive assessment of a company’s environmental, social, and governance impact, this approach significantly increases the burden of compliance, as integrating sustainability policies within the supply chain becomes a complex and laborious task. The responsibility for reporting still lies with the listed entity. However, the circular encourages value chain partners to align with the company’s sustainability policies, as they risk losing business from the listed entities if they don’t comply.

Why Choose InCorp?

InCorp Advisory provides a complete ecosystem and support for your BRSR needs. Our team of experts conducts a 360-degree assessment to identify and highlight potential risks and opportunities which can arise with BRSR reporting. Our clients range from listed companies to investors as we help them not only improve their ESG reports but also help create valuable investments.

FAQs

What is the BRSR Core?

The BRSR Core is a set of key performance indicators (KPIs) that listed entities in India are required to disclose as part of their annual report. The KPIs cover nine ESG attributes, including greenhouse gas (GHG) footprint, water footprint, energy footprint, waste management, employee wellbeing and safety, gender diversity, inclusive development, fair engagement with customers and suppliers, and openness of business.

What are the reporting requirements for the BRSR Core?

The top 1,000 listed entities in India are required to disclose the BRSR Core as part of their annual report from FY 2023-24. The KPIs must be disclosed in a specified format, and the disclosures must be accompanied by a reasonable assurance report from an independent auditor.

What are the benefits of disclosing the BRSR Core?

There are a number of benefits to disclosing the BRSR Core, including:

Increased transparency and accountability to stakeholders
Improved risk management
Enhanced reputation
Attracted investment

What are the challenges of disclosing the BRSR Core?

There are a number of challenges to disclosing the BRSR Core, including:

The cost of collecting and reporting the data
The complexity of the KPIs
The lack of clear guidance from SEB

What is the future of the BRSR Core?

The BRSR Core is a relatively new reporting framework, and it is likely to evolve over time. SEBI is expected to provide further guidance on the KPIs and the reporting requirements in the future.

Where can I find more information about the BRSR Core?

You can find more information about the BRSR Core on the SEBI website. The website includes the circular that issued the framework, as well as the KPIs and the reporting format.

Have you started collecting your BRSR data yet?

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Sustainability And The Steel Industry

March 16, 2023 by Aanchal Mathur

Reading Time: 3 minutes

Steel is an essential part of our economic system and has played a vital role in development initiatives. However, manufacturing steel accounts for approximately 8% of carbon dioxide emissions globally. Additionally, given the size and significance of the steel industry, it is no surprise that steelmakers have been under pressure to accelerate their efforts to achieve the Sustainable Development Goals (SDGs).

In keeping with the Indian government’s COP26 commitments, the Ministry of Steel (MoS) has invited stakeholders to prepare an action plan targeting the reduction of emissions in the steel industry. On an annual basis, the global iron and steel industry accounts for around 8% of total carbon dioxide (CO2) emissions. The industry accounts for 12% of total national CO2 emissions in India.

Discussions were held recently on the current situation and the way forward for supporting the transition to green steel and adopting the latest technology the steel industry can use to facilitate this transition. Through different programs and regulations, the MoS has assisted steel plants in reducing energy use and pollution emissions. Some of the steps taken are listed below:

Charter on Corporate Responsibility for Environment Protection (CREP)
National Action Plan on Climate Change (NAPCC)
NEDO Model Projects for Energy Efficiency Improvement
Iron & Steel Slag Utilization

Technologies Adopted by the Steel Industry
Coke Dry Quenching (CDQ)
Sinter Plant Heat Recovery
Bell Less Top Equipment (BLT)
Top Pressure Recovery Turbine (TRT)
Pulverized Coal Injection (PCI) system
Dry-type Gas Cleaning Plant (GCP)
Cast House/ Stock House Dedusting System
Energy Monitoring & Management System
Secondary Fume Extraction System
Regenerative Burners in Re-heating Furnaces of Rolling Mills
Direct Rolling Process eliminating the need for Re-heating furnaces
Near Net Shape casting
Variable Voltage Variable Frequency (VVVF) Drives

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BRSR 2.0 – Latest Recommendations From SEBI

February 23, 2023 by Prakhar Gupta

Reading Time: 3 minutes

Environmental Social Governance (ESG) reporting is gaining momentum in India, with the Securities and Exchange Board of India (SEBI) making it mandatory for the top listed entities to report their Business Responsibility and Sustainability Report (BRSR) as part of their listing disclosure requirements. In addition, SEBI has also imposed regulations for ESG-labelled Mutual Funds, requiring them to invest predominantly in companies that publish BRSR reports. Recently, SEBI updated the regulatory guidelines for issuers of green bonds mandating them to adopt the abridged version of the BRSR report. SEBI is also currently working on a regulatory framework for ESG Rating Providers (ERPs).

As India’s top 1000 companies are gearing to adopt and publish the first set of mandatory BRSR reports, SEBI on 20th February 2023 released its ESG Committee’s recommendations on streamlining the ESG disclosures, ESG Ratings, and ESG Investments in India.

The recommendations put a strong emphasis on improving the quality of BRSR disclosures such that stakeholders can have a stronger reliance on the information disclosed. The top 6 highlights of the recommendations of SEBI’s ESG Committee which increase the scope, utilitarian value, and quality of BRSR are as follows:

A: BRSR Core Assurance:

The simplest way to build reliance on BRSR disclosures is by a third-party assurance. BRSR currently covers a wide range of disclosures, hence, to limit the cost of compliance the committee has proposed rolling out assurance in a phased manner. The said assurance is only applicable to the most critical disclosures of BRSR, named as BRSR Core by the consultation paper. BRSR Core covers the assurance of GHG footprint, water consumption and discharge, R&D and capex expenditure in reducing environmental footprint, addressing waste disposal, employee wellbeing, and safety, gender diversity, POSH complaints, purchases from MSME and small producers, job creation in tier-3 towns, percentage of negative media sentiment and average days of payment to vendors and openness of business.

B: Upgrade to BRSR Comprehensive Framework:

Many KPIs suggested in the BRSR core are currently not in BRSR comprehensive framework. Hence the committee has proposed to amend BRSR comprehensive framework and include additional KPIs. Reasonable assurance is required from an assurance provider for such KPIs mentioned under the BRSR core option.

C: Essential Supply Chain Disclosures:

For the current financial year, the BRSR disclosure requirements buckets supply chain indicators under leadership indicators. However, for certain companies, significant GHG emissions may be captured in the supply chain and hence it becomes essential for them to report the same. Keeping the complexity of getting the relevant data for the companies in the initial year, the ESG committee recommends making it an essential indicator in the coming years under the BRSR disclosure requirements. The disclosure shall be on a “comply-basis and will be rolled out in a phased manner.

D: Indianized ESG Ratings Scores:

Apart from working on regulations framework on how ESG Rating Providers (ERPs) shall operate, the ESG committee also believes that emerging markets like India present a unique set of environmental and social challenges and therefore there is a need for a distinct set of metrics to be considered when assigning ESG ratings. In the context of India, for instance, issues such as employment creation in smaller towns, gender diversity at the employee level, and inclusive development are much more pertinent than in developed markets. Hence the committee has identified relevant 15 ESG parameters that have an Indian context.

E: ESG Core Rating based on BRSR:

SEBI Committee believes that in general ESG ratings are based on self-disclosed data. The Committee has already proposed that the BRSR core indicator shall be subject to assurance. The Committee further proposes that in addition to their general ESG ratings, ERPs shall also provide a Core ESG rating, which shall be based on assured BRSR Core parameters.

F: Mitigation of investment risks:

To mitigate the risk of greenwashing and safeguard investors SEBI committee has proposed an ESG scheme to invest at least 65% of its AUM in companies that are reporting the BRSR comprehensive version and also providing assurance on BRSR Core disclosures. The same shall come into effect on Oct 01, 2024. Additionally, third-party assurance for the ESG funds regarding compliance shall be introduced from April 01, 2023, on a ”comply-or-explain” basis.

Conclusion

Adoption of BRSR reporting is not just run-of-the-mill compliance but has a larger impact and a much wider audience. SEBI’s ESG committee with this consultation paper has redrawn the attention of listed companies who shall be releasing their first BRSR report for FY 22-23.

Why Choose InCorp?

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ESG Reporting – The Key to Fundraising in 2022 and Beyond

November 3, 2022 by InCorp Advisory

Reading Time: 3 minutes

Sustainable development is an approach to economic and social progress that works for everyone. It focuses on the idea that any form of growth can last longer if it nurtures all sections or elements in society, including our environment.

Companies are understanding the importance and benefits of adopting an ESG framework. Non-financial disclosures are being made through ESG reporting to maintain transparency with investors, customers and employees. In this blog, we shall see how businesses can leverage upon significant fundraising through ESG disclosure.

Why Are Investors Shifting Towards ESG Investments?
What Popularized ESG Stocks?
Do ESG Investments Produce Enhanced Returns?
How Are The Pillars Of ESG Impacting Business Strategies?
Conclusion
Why Choose Incorp?
FAQs On ESG Reporting – The Key to Fundraising in 2022

Why are investors shifting towards ESG investments?

The wave of ESG practices is altering traditional investment methods globally. There has been an evolution in the funding trend. Investors are updating their portfolios to include businesses that are environmentally and socially conscious. They are starting to prefer companies that are sustainable.

Integration of ESG into the business portfolio not only mitigates the risk but also contributes to better returns. Thus, there has been a significant change in investment patterns by individuals globally.

What popularized ESG stocks?

There are several factors acting as a catalyst for the growth of ESG stocks. Companies with strong ESG grounds attract B2B and B2C customers with sustainable practices.

By being ESG compliant, companies receive support and subsidies from the government through deregulation. Enormous funding is diverted towards ESG compliant companies as their investments are long-term, sustainable, and environmentally sound which also cuts down the proportion of risk.

The bid for a ‘sustainable tomorrow’ is also compelling companies to incur some extra expenditure to go green. According to research conducted by McKinsey, 70% of the consumers from across various industries were keen to go green, even if it meant paying an extra 5% for a cleaner product as an effort to combat long term climate change threats.

Do ESG investments produce enhanced returns?

According to the world’s largest asset management firm, BlackRock, when Covid19 had affected the economy in 2020, ESG investments performed outstandingly well. BlackRock is one of the pioneers promoting sustainable investments. The company strongly believes that ‘climate risk is investment risk’.

As per Nordea Equity Research (largest financial services group in the Nordic region) from 2012-2015, companies that performed extremely well in their ESG ratings outperformed their peer companies by at least 40%.

Neste is a more than 70-year-old company in Finland. It was primarily a traditional oil refining and marketing company but now it has started generating fuel from renewable resources and gains more than two-thirds of its profits from sustainable business practices. The future of equity investments lies in striking a balance between profit-making and embracing ESG practices.

How are the pillars of ESG impacting business strategies?

The growing threat of climate change is no longer restricted to conference rooms. Theories are translating into action in the form of ESG practices. There is an expanding demand from the shareholders who seek to invest where the values and ethics of an organization are positioned parallel with the global climate change action plan.

Investors are drifting away from business investments in companies that are environmentally and socially dysfunctional. There lies a cutthroat competition in the market and businesses have no option but to adopt an ESG strategy. Investment decisions are now being based on how a company’s ESG indicators perform over and above the financial performance.

ESG adoption was promoted considerably when the United Nations (UN) launched the Principles of Responsible Investing in 2006. It encouraged investors to be the flag bearers of sustainable investments and enhance ESG practices by taking social and environmental limitations into account.

Eventually, in 2006, 63 investment companies including asset owners, asset managers, and service providers became signatories who signed a commitment and promised to integrate ESG into their investment practices. From 63 investors in 2006 with investments worth 6.5 trillion dollars in AUM, the number of participants increased to over 1700 with 81.7 trillion dollars in AUM by 2018.

Conclusion

The relevance of ESG metrics and scores is getting brighter with each passing day. Companies are redesigning their business frameworks to leverage ESG compliance.

The significance of ESG in the corporate sector is expected to grow stronger in coming times as it conjugates profit building strategies with environmental and social welfare.

Why choose Incorp?

We understand that every company has a unique need and maturity level when it comes to sustainability. That’s why we offer our clients customized sustainability solutions along with various other value-added ESG services like ESG reporting, ESG assurance, due-diligence, and many more.

Our experts have training in global frameworks like GRI and TCFD as well as regional frameworks like BRSR, HKEX Framework, SGX Framework, etc. We are your one-stop solution for BRSR Reporting in India.

FAQ’s

What are the 3 pillars of ESG?

The three pillars of ESG are:

Environmental – this is the impact the organization has on the planet
Social – this is the impact the organization has on people, including staff and customers, and the community.
Governance – this is the impact the organization has on governed.

Why is ESG becoming more important?

It makes organizations aware of the climate issues that are occurring and encourages businesses to adopt new environment-friendly practices. For the social part of ESG, employees and shareholders are created equally, and their health and safety are considered.

What is an ESG Checklist?

Certainty Software's ESG Checklist is software used to assess a company's environment, and social and governance practices. The checklist is used by an organization to assess its own performance or that of its suppliers.

Does ESG reporting improve profitability?

Companies using ESG services are outperforming their competitors, attracting top talent, and profiting from the act of more sustainably. Organizations ignoring ESG are at risk of regulation and stakeholder intervention.

Why do companies care about ESG?

ESG reporting provides a competitive advantage. Having an ESG program in place helps boost brand recognition and even promotes brand loyalty.

When should the ESG report be published?

In terms of ESG reporting, issuers are required to publish their ESG reports at the same time as the publication of their annual report as of 1^st January 2022.

Give yourself a competitive edge and start collecting data for BRSR reporting today!

Talk to our ESG experts

BRSR – A New Avatar of ESG Reporting

August 16, 2022 by InCorp Advisory

Reading Time: 3 minutes

BRSR Reporting is probably a new avatar to a legacy of other sustainability reports. Sustainability reporting was introduced to Indian businesses more than a decade ago. In 2011, the Ministry of Corporate Affairs (MCA) released the National Voluntary Guidelines (NVG) on Social, Environmental, and Economic Responsibilities of Business. The NVG aligned with the UN Millennium Development Goals (UNMDGs).Taking cue from the NVG, the Security and Exchange Board of India (SEBI) introduced the Business Responsibility Report (BRR) in 2012.

Business Responsibility And Sustainability Reporting – BRSR Reporting
Brief Timeline Of BRSR Reporting
Some Salient Points About BRSR Reporting Are
Conclusion
How Can InCorp Help You?
FAQs On BRSR Reporting

Business Responsibility and Sustainability Reporting – BRSR Reporting

The BRR is the first Environment, Social, and Governance (ESG) regulatory disclosure framework in India – it precedes the current Business Responsibility and Sustainability Reporting (BRSR) requirements. BRR was based on NVG and was mandatory for the top 100 listed companies (by market capital). Gradually, the coverage of BRR increased, and by 2019 it became mandatory for the top 1000 listed companies.

Eventually, BRR’s relevance faded, owing to rapid global developments. Additionally, an NSE report (2018) revealed that the BRR Reports lacked quality, rendering the reporting unreliable. Hence the need for a more robust and globally aligned reporting – enter the BRSR framework!

Realizing the issue, the MCA adopted the National Guidelines for Responsible Business Conduct (NGRBC) in 2020. Subsequently, SEBI replaced BRR with Business Responsibility and Sustainability Reporting (BRSR), formulated by an MCA committee on BRR.

Brief Timeline of BRSR Reporting

Some Salient points about BRSR Reporting are –

NGRBC suggests two versions for BRSR reporting – “Comprehensive” and “Lite”. The ‘Comprehensive Version’ of reporting is for listed organizations, and the ‘Lite Version’ is for unlisted companies. For now, SEBI has mandated that India’s top 1000 listed companies (by market capital) submit the comprehensive version BRSR for FY 2022-23.
A unique advantage of following BRSR requirements is that it adopts the United Nations Sustainable Development Goals (UN-SDGs) and is benchmarked with other global ESG reporting frameworks like Global Reporting Initiative (GRI), Task Force on Climate-Related Financial Disclosures (TCFD), etc.
Reporting under BRSR guidelines comprises of three sections –
- Section 1: General Disclosures
- Section 2: Management and Process Disclosures
- Section 3: Principle-wise Disclosures
Section 1 focuses on the basic set of information at the company level. Section 2 focuses on policy and governance level questions. Both these sections are mandatory to be reported.
Section 3 comprises nine principles, each focused on a specialized area. Disclosures in section 3 have two categories – Essential Indicators and Leadership Indicators. The essential indicators are mandatory, while the leadership indicators are voluntary.
Method of reporting under BRSR, compared to its predecessor BRR, is considerably heavy on data requirements. It comprises more than 120 reported data points across three sections and nine principles.
Gathering the raw data (thousands of data points!) across the Finance, HR, CSR, Supply-chain and Operations teams (and various systems such as ERP, CRM, HRMS etc.), collating and indexing it, processing it and then structuring it across these nine principles is an extensive exercise, and requires specialized focus and alignment.

Conclusion

While BRSR reporting is a compliance mandate for companies, the filing exercise may give companies deeper insights into their non-financial business risks and opportunities.

If you believe that BRSR is just another compliance, do check out this blog. We think it needs a more profound engagement within the organization to be able to build a BRSR Report.

How Can InCorp Help You?

Incorp can be the one-stop solution for all your BRSR requirements. Our professionals are trained to comply with the ESG Framework and work in the best interest of your company.

FAQs

What is Business Responsibility Sustainability Reporting (BRSR)?

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.

Why is BRSR important?

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.

Who should report under BRSR?

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.

What are the components of BRSR?

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

Is BRSR mandatory?

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.

What is the reporting cycle for BRSR?

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

What are the penalties for non-compliance with BRSR?

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

How does BRSR differ from other sustainability reporting frameworks?

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.

How can companies prepare for BRSR reporting?

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.

How can BRSR reporting benefit companies?

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.

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Is BRSR yet another compliance?

August 8, 2022 by InCorp Advisory

Reading Time: 2 minutes

Business Responsibility and Sustainability Report(BRSR)

The Security and Exchange Board of India (SEBI) introduced Business Responsibility and Sustainability Reporting (BRSR) through a circular dated May 2021.

What Is BRSR Reporting?
BRSR Reporting Compliance
Our Supported ESG Reporting Framework
Conclusion
FAQs on BRSR Reporting

What is BRSR Reporting?

BRSR, an evolved version of Business Responsibility Report (BRR), is an Environmental, Social, and Governance (ESG) framework, which is benchmarked to global frameworks such as GRI, TCFD, SASB, etc. SEBI has mandated India’s Top 1000 listed companies (by Market Capital) to submit the comprehensive version BRSR for FY 2022-23 and onwards.

Gyaneshwar Singh, Joint Secretary, Government of India, said, “Disclosures sought under the BRSR report will provide much-needed uniformity as it draws inputs from global sustainability reporting frameworks.”

(The global reporting frameworks referred here are GRI, CDP, SASB, TCFD, and IR, among others)*

India is already a compliance-heavy market, ranked 62 on the Ease of Doing Business ranking. BRSR may seem like another compliance mandate for businesses, but in fact, BRSR will replace the existing BRR compliance.

BRSR Reporting Compliance

Unlike other compliances and reports (like CARO, which target specific stakeholder), the BRSR targets an extensive spectrum of stakeholders. It is structured to uncover the non-financial risk indicators – for multiple stakeholders such as – investors, shareholders, bankers, employees, community, regulators, customers and suppliers.

The variety of raw data required to submit a BRSR report also make this compliance unique. The BRSR framework is significantly data-heavy – with 120+ parameters to be reported across nine core principles. Each of these 9 principles focus on a specific reporting area. The raw data is spread across multiple departments (and often across locations) – for example environment related data will be collected from Environment, Health and Safety (EHS) team at location level, employee benefit data will come from Human Resources (HR) team at corporate level, while community initiatives would be driven by the Corporate Social Responsibility (CSR) team. This shall require a high degree of coordination among various departments.

Rating agencies, both domestic (e.g. CRISIL) and global (e.g. Dow Jones Sustainability Index – DJSI, Morgan Stanley Capital International – MSCI, etc.), have already published ESG ratings and industry benchmarks for companies based on their ESG performance. BRSR will provide consolidated data for these rating agencies to benchmark companies on ESG performance. Similar to financial rating, ESG rating is already impacting market cap and institutional / retail investments.

Our Supported ESG Reporting Framework

GRI – Global Reporting Initiative

SASB – Sustainability Accounting Standards Board

TCFD – Task Force on Climate-Related Financial Disclosures

CDP – Carbon Disclosure Project

Conclusion

ESG reporting is picking up in India. SEBI is taking the lead and setting up policy and framework norms for ESG rating agencies and expanding the ESG coverage include more entities (some mutual funds as well!). The next 10 years, as awareness for measuring and reporting non-financial risks grows, companies that are late adopters for ESG will be penalized by all stakeholders. While BRSR adoption is a challenge for many companies, it is a move in the right direction for Indian companies to integrate with the global business environment.

FAQs

Stay compliant with all ESG regulations!

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ESG Reporting – The Key to Fundraising in 2022 and Beyond

Table Of Contents

Why are investors shifting towards ESG investments?

What popularized ESG stocks?

Related Read: Five Benefits of ESG Reporting for Businesses

Do ESG investments produce enhanced returns?

How are the pillars of ESG impacting business strategies?

Related Read: BRSR – A New Avatar of ESG Reporting

Conclusion

Why choose Incorp?

FAQ’s

Give yourself a competitive edge and start collecting data for BRSR reporting today!

BRSR – A New Avatar of ESG Reporting

Table Of Contents

Business Responsibility and Sustainability Reporting – BRSR Reporting

Brief Timeline of BRSR Reporting

Some Salient points about BRSR Reporting are –

Related Read: Is BRSR yet another compliance?

Conclusion

How Can InCorp Help You?

FAQs

Have you started collecting your BRSR data yet?

Is BRSR yet another compliance?

Business Responsibility and Sustainability Report(BRSR)

Table Of Contents

What is BRSR Reporting?

Related Read: BRSR – A New Avatar of ESG Reporting

BRSR Reporting Compliance

Related Read: ESG Reporting – The Key to Fundraising in 2022 and Beyond

Our Supported ESG Reporting Framework

Related Read: Five Benefits of ESG Reporting for Businesses

Conclusion

FAQs

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Table Of Contents

Introduction

The framework enumerates disclosure requirements and assurance applicability in a glide path and can be divided into THREE categories:

Nine Attributes of BRSR Core

Related Read: BRSR 2.0 – Latest Recommendations From SEBI

Changes in the extant BRSR to incorporate BRSR Core KPIs

Criteria when selecting BRSR Core Assurance provider

Related Read: BRSR Report – A New Avatar Of ESG Reporting

Conclusion

Why Choose InCorp?

FAQs

Have you started collecting your BRSR data yet?

Related Read: BRSR 2.0 – Latest Recommendations From SEBI

Related Read: BRSR Report – A New Avatar Of ESG Reporting

Related Read: Is BRSR Yet Another Compliance?

Have you started collecting your BRSR data yet?

A: BRSR Core Assurance:

B: Upgrade to BRSR Comprehensive Framework:

Related Read: Is BRSR Yet Another Compliance?

C: Essential Supply Chain Disclosures:

D: Indianized ESG Ratings Scores:

Related Read: BRSR Report – A New Avatar Of ESG Reporting

E: ESG Core Rating based on BRSR:

F: Mitigation of investment risks:

Conclusion

Why Choose InCorp?

Have you started collecting your BRSR data yet?

Table Of Contents

Why are investors shifting towards ESG investments?

What popularized ESG stocks?

Related Read: Five Benefits of ESG Reporting for Businesses

Do ESG investments produce enhanced returns?

How are the pillars of ESG impacting business strategies?

Related Read: BRSR – A New Avatar of ESG Reporting

Conclusion

Why choose Incorp?

FAQ’s

Give yourself a competitive edge and start collecting data for BRSR reporting today!

Table Of Contents

Business Responsibility and Sustainability Reporting – BRSR Reporting

Brief Timeline of BRSR Reporting

Some Salient points about BRSR Reporting are –

Related Read: Is BRSR yet another compliance?

Conclusion

How Can InCorp Help You?

FAQs

Have you started collecting your BRSR data yet?

Business Responsibility and Sustainability Report(BRSR)

Table Of Contents

What is BRSR Reporting?

Related Read: BRSR – A New Avatar of ESG Reporting

BRSR Reporting Compliance

Related Read: ESG Reporting – The Key to Fundraising in 2022 and Beyond

Our Supported ESG Reporting Framework

Related Read: Five Benefits of ESG Reporting for Businesses

Conclusion

FAQs

Stay compliant with all ESG regulations!

For Business Enquiry

For Career Enquiry

For Business Enquiry

For Career Enquiry

Visit us