Consider the following statements: 

  1. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR).  
  2. In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature.  

Which of the statements given above is/are correct?   

  • I only 
  • II only 
  • Both I and II 
  • Neither I nor II  

Answer: (b) II only 

  • The Business Responsibility and Sustainability Report (BRSR) is an Indian reporting framework aimed at improving the disclosure of environmental, social, and governance (ESG) performance by listed companies.
    • It traces its origins to the ‘Voluntary Guidelines on Corporate Social Responsibility’ introduced by the Ministry of Corporate Affairs in 2009.
  • As per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations), the Securities and Exchange Board of India (SEBI) (not RBI) requires the top 1,000 listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR). 
    • This report includes disclosures on how these companies perform in relation to the nine principles outlined in the National Guidelines on Responsible Business Conduct.
  • The BRSR is a non-financial reporting framework that requires companies to disclose their performance on environmental, social, and governance (ESG) parameters based on nine principles of the National Guidelines on Responsible Business Conduct (NGRBC).
Key Aspects of the BRSR Framework
  • Mandate: Applicable to the top 1,000 listed entities, requiring integrated reporting on ESG metrics.
  • Structure: BRSR reporting comprises three main sections: General Disclosures, Management and Process Disclosures, and Principle-wise Performance Disclosures.
  • Core Principles: It is based on the nine principles of the National Guidelines for Responsible Business Conduct (NGRBC), focusing on ethics, transparency, employee well-being, environmental protection, and consumer value.
  • Key Indicators: The format includes both essential indicators (mandatory) and leadership indicators (voluntary).
  • Assurance: SEBI introduced the requirement of assurance on sustainability reporting, increasing accountability.
  • Global Alignment: BRSR is designed to align with global sustainability standards such as GRI and TCFD. 
Business Responsibility and Sustainability Report