WHAT IS BRSR ESG REPORTING?
ESG reporting is a process of disclosing a company’s performance and impact on environmental, social, and governance (ESG) issues. BRSR, or the Business Responsibility and Sustainability Reporting, is an initiative launched by the Securities and Exchange Board of India (SEBI) in 2021, which aims to encourage companies to voluntarily report their ESG performance. Under BRSR, companies are required to disclose their ESG-related risks and opportunities, as well as their management approaches and performance in areas such as climate change, human rights, labor practices, biodiversity, and anti-corruption.
BRSR is based on the core principles of National Guidelines for Responsible Business Conduct’ (NGRBCs) and Sustainable Development Goals (SDGs). NGRBC guidelines provide a framework for businesses to integrate social, environmental and ethical concerns into their operations and core strategies. The NGRBCs cover several areas of business conduct, including human rights, labour rights, environmental sustainability, consumer protection and anti-corruption.
NINE PRINCIPLES OF NGRBC
- Conduct business with integrity, transparency, and accountability.
- Respect human rights and avoid complicity in human rights abuses.
- Provide safe and environmentally friendly goods and services.
- Respect and promote the interests of all stakeholders.
- Respect and promote diversity and eliminate discrimination.
- Promote responsible consumption and production and adopt sustainable practices.
- Ensure activities do not negatively impact health and well-being.
- Promote the development and use of technology that respects human rights and data protection.
- Engage with and contribute to the development of communities.
The Business Responsibility and Sustainability Reporting (BRSR) framework requires companies to disclose their environmental, social, and governance (ESG) performance across a range of specific areas, including but not limited to;
- Diversity and Inclusion
- Responsible Supply Chain
- Sustainable Development Goals (SDGs)
BRSR Implementation Benefit
There are numerous benefits of your ESG report as per BRSR reporting guidelines, such as:
- Enhance the credibility, consistency, and transparency of organization under Environmental, Social and Governance (ESG) parameters.
- Facilitate investors to make better investment decisions by improving there ESG Score, and enhance their reputation and brand value.
- Provides a framework to identify and mitigate ESG-related risks and opportunities.
- ESG reporting can help companies comply with existing and emerging regulations and standards related to sustainability and avoid reputational and legal risks.
- Addressing global challenges such as climate change, social inequality, and biodiversity loss, and contribute to the achievement of the United Nations Sustainable Development Goals (SDGs).