The recent circular from SEBI on “Business Responsibility and Sustainability Reporting (BRSR) by listed entities”, has widened the scope of ‘National Guidelines on Responsible Business Conduct’ (NGBRCs). The BRSR shall be applicable to the top 1000 listed entities (by market capitalization). In order to give time to companies to adapt to the new requirements, the reporting of BRSR shall be voluntary for FY 2021 –22 and mandatory from FY 2022 –23. This marks the increasing adoption of ESG goals by the top 1000 companies.
Embarking on BRSR will not only help companies to broaden the bandwidth to adopt global norms around sustainability, but it brings along a host of benefits including sustainable business, energy-efficient operations, optimum resources utilization, socially inclusive work culture, and best governance practices.
Companies can choose to adopt the reporting voluntarily or start preparing to set their ESG goals to meet the requirements. It is vital to assess where a company stands in terms of adoption or meeting the requirements as set in the indicators, assess the gaps and how best to meet the requirements.
Though companies tend to treat these as a reporting requirement, sooner or later, this will become a concern for all companies. As ESG is more inclusive in nature and is being used by investors, customers, and other stakeholders, companies shall strive to adopt the best practices early on to best manage the ESG strategy of their companies.
