B – BRR vs. BRSR Financial disclosures Vs. Management and process disclosures

B – BRR vs. BRSR Financial disclosures Vs. Management and process disclosures

Business Responsibility Report (BRR)

BFinancial details of the company
(i)Paid up capital
(ii)Total Turnover – Revenue from operations
(iii)Total profit after taxes
(iv)Spending on Corporate Social Responsibility (CSR) as a %age of average profit for last 3 financial years
(v)List of activities in which expenditure in 4 above has been incurred
Business Responsibility and Sustainability Report (BRSR)
Management and process disclosures (details of additional disclosures)
The new format requires disclosures for companies to demonstrate structures, polices and processes put in place toward adopting National Guidelines on Responsible Business Conduct (NGRBC) principles and core elements. Some of the important additional disclosures amongst others are as under:-
(i)Policy and management process
 Company needs to disclose it confirmation that company’s policy cover each principle and its core elements of the NGRBC and also disclose the web link where policies are disclosed.
 Name of the national /international codes / certifications /labels / (such as Fairtrade, Rainforest Alliance, Stewardship Councils, Trustees) and standards such as SA 8000, OHSAS, BIS, ISO adopted by the company and mapped into the principles.
 Disclosures of goals / targets / specific commitments set by company specifying whether it is mandatory based on any legislation or voluntary.
 In case of mandatory goals / target, the details of relevant legislation to be disclosed.
 Performance against the specific commitments / goals / targets along with reasoning in cases where the goals / target are not met.
(ii)Governance, leadership and oversight
 Disclosure of director’s responsibility for the business responsibility report containing the highlights of ESG related challenges, targets and achievements.
 The statement should include overall vision and strategy of the company for short term / medium term / long term with respect to managing significant environmental and social impacts that the company causes / contributes to or that are linked directly to the company’s activities / products / services.
 Organizational highest authority responsible for implementing and oversight of the business responsibility policies such as director of the board / committee of the board / committee of employees / senior management personnel.
 In case the committee is the highest authority, the disclosure of composition of the committee is required.
 Disclosure relating to independent audit / evaluation done by an external agencies of the working of company’s policies. (new policy does not allow internal agency to conduct evaluation which was the case in the earlier BRR).

What is BRSR?

Sustainability Reporting is an emerging discipline encompassing the disclosure and communication of an entity’s non -financial – environmental, social, and governance (ESG) performance and its overall impact. Over the last few years, more and more entities are now preparing and disclosing their sustainability reports either under a mandate or voluntarily as per the reporting frameworks/ standards provided by standard-setting bodies/ regulators.
Read More

Foundation stone for BRSR

There are various international and local frameworks used by organisations across the globe for their corporate sustainability reporting. In November 2018, the Ministry of Corporate Affairs (MCA) constituted a Committee on Business Responsibility Reporting for finalising Business Responsibility Reporting formats for listed and unlisted companies, based on the framework of the National Guidelines for Responsible Business Conduct’ (NGRBCs) . Note:   The existing format of BRR is based on ‘National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business’ (“NVGs”) issued by the Ministry of Corporate Affairs (“MCA”), Government of India.
Read More

Key disclosures in BRSR

A few of the key disclosures sought in the BRSR are highlighted below: a. An overview of the entity’s material ESG risks and opportunities, approach to mitigate or adapt to the risks along-with financial implications of the same
Read More

Role of Chartered Accountants in BRSR

“The focus on sustainable investing among equity market participants is expected to rise with more companies and countries implementing policies to meet ESG targets, particularly with respect to carbon emissions…….Stocks in Asia with high ESG scores on the MSCI are trading at a 40% premium to stocks with low ESG scores
Read More
Scroll to Top