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Source: The post is based on the article “IICA and UNICEF jointly organize workshop on Business Responsibility and Sustainability Reporting(BRSR)” published in PIB on 12th September 2023
What is the News?
Indian Institute of Corporate Affairs(IICA) has organized a workshop on Business Responsibility and Sustainability Reporting(BRSR) in collaboration with UNICEF and National Stock Exchange.
What is the Business Responsibility and Sustainability Reporting (BRSR) framework?
The Business Responsibility and Sustainability Reporting (BRSR) framework was introduced by SEBI in 2021.
The framework is a mandatory disclosure mechanism for top 1000 listed companies or businesses to report their performance on environmental, social and governance (ESG) aspects and demonstrate their commitment to responsible business practices.
The framework is based on the nine principles of the National Guidelines for Responsible Business Conduct (NGRBC) which are:
Source: Deloitte
What are the strengths of BRSR Framework?
Firstly, it provides a comprehensive framework covering a wide range of sustainability topics, including governance, ethics, social responsibility, environmental performance, and economic performance.This enables Indian companies to report on sustainability in a holistic manner.
Secondly, its alignment with global standards simplifies sustainability reporting for Indian companies to international stakeholders, who show increasing interest in sustainability performance.
Thirdly, being mandatory for the top 1,000 listed companies ensures a uniform standard, ultimately improving sustainability reporting across India.
What are the weaknesses of BRSR Framework?
Firstly, BRSR can be complex and challenging to implement due to numerous requirements, making it difficult for companies to identify relevant ones.
Secondly, reporting requirements may lack clarity, leading to inconsistencies in reporting, mainly because the framework is relatively new and lacks sufficient implementation guidance.
What are the improvements needed to the BRSR Framework?
Firstly, simplification and ease of implementation can be achieved by reducing requirements and offering clearer reporting guidelines and implementation support.
Secondly, enhancing clarity through more examples of reporting on various sustainability topics would benefit companies.
Lastly, expanding the framework to encompass additional sustainability topics like human rights and labor practices would enhance its comprehensiveness.
