Business Responsibility and Sustainability Reporting (BRSR)

Business Responsibility and Sustainability Reporting (BRSR)

Our services:

• Evaluating the systems, functions, operations and allied activities in the organisation to assess the ‘scope and boundary’ for BRSR
• Synchronisation of disclosure requirements of financial reporting standards (Ind AS) with the disclosure requirements enshrined under BRSR
• Synchronisation of various regulatory and governance requirements under the SEBI-LODR/ PIT/ UTP Norms with the disclosure requirements enshrined under BRSR
• Assisting the auditors (external or internal, as the case may be) in having a synchronised exchange of information vis-à-vis BRSR
• Providing assurance on BRSR carried out by the companies

Background for BRSR:

• Sustainability Reporting is an overview of a company’s economic, environmental and social impacts, caused by everyday business operations and activities.
• 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).
• In August 2020, the Committee addressed various aspects and issues that could improve the quality and utility of disclosures and recommended Business Responsibility and Sustainability Reporting (BRSR) as an update on the existing Business Responsibility Reporting (BRR) to incorporate the current global practices in non-financial sustainability reporting based on the NGRBCs.
• Through its ‘Report of the Committee on Business Responsibility Reporting’ (the Committee Report), the Committee recommended that BRR be rechristened BRSR, where disclosures are based on ESG parameters, compelling organisations to holistically engage with stakeholders and go beyond regulatory compliances in terms of business measures and their reporting.
• Regulation 34(2)(f) of SEBI-LODR ~ Reporting is mandatory for the top 1,000 listed companies (by market capitalisation) from FY 2022–23, while disclosure is voluntary for FY 2021–22. Thus, the Committee Report encourages companies to report their performance for FY 2021–22 in order to be better prepared to adopt this framework from the FY 2022-23
• As per SEBI’s circular dated 10 May 2021, entities already preparing and disclosing sustainability reports based on internationally accepted reporting frameworks (such as GRI, SASB, Task Force on Climate-related Financial Disclosures (TCFD) or <IR> may cross-refer to disclosures made under these frameworks.

Contact CA Kamal Garg