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SEBI circular on business responsibility and sustainability reporting by listed entities (BRSR)

legislation type Executive
Passed in 2021
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. 

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.


from the Grantham Research Institute
from the Grantham Research Institute
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