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