Key disclosures in BRSR
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 | |
| b. | Sustainability related goals & targets and performance against the same | |
| c. | Environment related disclosures covering aspects such as resource usage (energy and water), air pollutant emissions, green-house (GHG) emissions, transitioning to circular economy, waste generated and waste management practices, bio-diversity etc. | |
| d. | Social related disclosures covering the workforce, value chain, communities and consumers, as given below: |
| i. | Employees/workers: Gender and social diversity including measures for differently abled employees and workers, turnover rates, median wages, welfare benefits to permanent and contractual employees/workers, occupational health and safety, trainings etc. | |
| ii. | Communities: disclosures on Social Impact Assessments (SIA), Rehabilitation and Resettlement, Corporate Social Responsibility etc. | |
| iii. | Consumers: disclosures on product labelling, product recall, consumer complaints in respect of data privacy, cyber security etc. |
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.
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.
A – BRR vs. BRSR General information and general disclosures
A – BRR vs. BRSR General information and general disclosures
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
B – BRR vs. BRSR Financial disclosures Vs. Management and process disclosures
B – BRR vs. BRSR Financial disclosures Vs. Management and process disclosures
C – BRR vs. BRSR Other details and Business Responsibility Information
C – BRR vs. BRSR Other details and Business Responsibility Information
Principles and principle-wise performance disclosures
PRINCIPLE 1:
Businesses should conduct and govern themselves with Ethics, Transparency and Accountability