A – BRR vs. BRSR General information and general disclosures
A – BRR vs. BRSR General information and general disclosures
Business Responsibility Report (BRR)
| A | General information about the company |
| (i) | CIN no of the company |
| (ii) | Name of the company |
| (iii) | Registered office of the company |
| (iv) | Website |
| (v) | Email id |
| (vi) | Financial year reported |
| (vii) | Sectors Sector(s) that the Company is engaged in (Industrial Activity Code-wise) |
| (i) List three key products /services that the company manufactures/ provides (as in balance sheet) |
| (j) Total number of locations where business activity is undertaken by the company |
| (k) Markets served by the company – Local/State/ National/International Corporate Social Responsibility required to be provided under the financial details of the company |
| Business Responsibility and Sustainability Report (BRSR) |
| General disclosures (details of additional disclosures) |
| (i) | Details of the entity |
| Name, contact details – phone no, email address – reporting boundary i.e. standalone or consolidated (company should ensure consistency in reporting boundary across the report. | |
| (ii) | Product / services |
| Details of business activities, products and services sold by the company that account for 90% of the company’s turnover. Individual contribution of such products / services to the total turnover also required to be disclosed. | |
| (iii) | Market served by the company |
| Number of location (national and international) along with a brief description on types of consumers served. | |
| (iv) | Employees |
| Total number of employees at the reporting period – in case of significant change from the beginning to the end, reasoning is required to be disclosed. Number of women and KMP in the board. Trend of past three years relating to turnover rate of permanent employees. | |
| (v) | Corporate Social Responsibility in the new report forms part of the disclosure. |
| Following disclosures are not required in the new format – total spending on CSR as %age of Profit after tax. – list of activities under which CSR expenditure is incurred. | |
| (vi) | Transparency and disclosure compliance |
| Disclosure required relating to complaints / grievances on any aspect of the National Guidelines of Responsible Business Conduct during the current year and previous year (Complaints could be from communities, investors, shareholders, employees, customers, value chain partners and others). | |
| (vi) | Overview of the company’s material responsible business conduct issues |
| Specific disclosure called for on “material responsible business conduct” and sustainability issues relating to environmental, social and governance (ESG) along with risk / opportunity to the company’s business along with reasoning behind identifying the same – risk mitigation plan and the financial implications. (the companies to make qualitative disclosures – not to include quantitative forward looking information except in case of previous year where impact could be disclosed in terms of quantitative). |
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.
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
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