CSR and Regulatory Issues

CORPORTAE SOCIAL
REPSONSIBILITY (CSR)
Regulatory issues: Companies law 2013,
Business responsibility report (SEBI),NVG
GUIDELINES (Ministry of corporate affair)
SEBI (Business Responsibility report)
• SEBI issues Circular on “Business Responsibility and Sustainability Reporting by listed
Entities”
according to the decision taken at the SEBI Board meeting dated March 25, 2021, on
introducing new sustainability-related reporting requirements, SEBI has issued a Circular
containing the format of the Business Responsibility and Sustainability Report(“BRSR”). The
BRSR is a notable departure from the existing Business Responsibility Report(“BRR”)and a
significant step towards bringing sustainability reporting to par with financial reporting.
The reporting requirements were finalized based on feedback received from public
consultation and extensive deliberations with stakeholders including corporates,
institutional investors. Further, a benchmarking exercise with internationally accepted
disclosure frameworks was also undertaken.
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
b. Sustainability-related goals & and targets and performance against the same
c. Environment-related disclosures cover resource usage (energy and water),air pollutant
emissions, greenhouse (GHG) emissions, transitioning to a circular economy, waste generated
and waste management practices, bio-diversity etc.
• d. Social related disclosures covering the workforce,
value chain, communities and consumers, as given
below:
• i.Employees / workers: Gender and social diversity

including measures for differently abled employees
and workers, turnover rates, median wages, welfare
benefits to permanent and contractual
employees / workers, occupational health and
safety, trainings etc.
• ii.Communities: disclosures on Social Impact

Assessments (SIA), Rehabilitation and Resettlement,
Corporate Social Responsibility etc.
• Consumers: disclosures on product labelling, product recall, consumer complaints in respect
of data privacy, cyber security etc.
• Listed entities already preparing and disclosing sustainability reports based on internationally
accepted reporting frameworks (such as GRI, SASB, TCFD or Integrated Reporting) may cross-
reference the disclosures made under such framework to the disclosures sought under the BRSR.
• The BRSR is an initiative towards ensuring that investors have access to

standardized disclosures on ESG parameters. Access to relevant and comparable
information will enable investors to identify and assess sustainability-related risks
and opportunities of companies and make better investment decisions.At the same
time, companies will be able to better demonstratetheir sustainability objectives,
position and performanceresulting into long term value creation. Overall, higher
standards of ESG disclosures and transparency, will help in attracting more capital and
investment.
• The BRSR shall apply to the top 1000 listed entities (by market capitalization). 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. However, companies are
encouraged to be early adopters of the BRSR, thus being at the forefront of
sustainability reporting.
• SEBI was one of the early adopters of sustainability reporting for listed
entities among its global peers. The filing of the BRR containing ESG
(Environment, Social, and Governance) disclosures was first introduced for
listed entities in 2012. Since then, some developments have taken place.
With the adoption of the Paris Agreement on Climate Change and UN
Sustainable Development Goals, adapting to and mitigating climate
change impact and transitioning to sustainable economies have emerged
as major issues globally. The COVID pandemic has also accelerated the
relevance of ESG considerations to investors resulting in increased
awareness of investors and a shift towards sustainable investing. The same
is reflected in the spurt in new launches of ESG-themed mutual funds and
growth in assets of such schemes, including in India. As ESG investing
becomes more mainstream, disclosure requirements need to keep pace
with this change the BRSR is a significant step in this direction.
• The Circular issued today can be accessed on the SEBI website

www.sebi.gov.in

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CORPORTAE SOCIAL

• i.Employees / workers: Gender and social diversity

• ii.Communities: disclosures on Social Impact

• The BRSR is an initiative towards ensuring that investors have access to

• The Circular issued today can be accessed on the SEBI website

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