SEBI proposes format for business responsibility and sustainability reporting for listed companies

SEBI proposes format for business responsibility and sustainability reporting for listed companies

The Securities and Exchange Board of India (SEBI) conducted a round-table discussion and proposed format for business responsibility and sustainability reporting (BRSR).

Under the proposed Business Responsibility and Sustainability Reporting (BRSR), the top 1,000 listed companies by market capitalisation will have to disclose their ESG initiatives. 

The meeting on Friday was another initiative by SEBI to to get the views from India Inc on the discussion paper ahead of the finalisation of the rules under this policy. 

In a bid to push companies to act proactively on their sustainability initiatives, SEBI chairman Ajay Tyagi on Friday told business leaders that the proposed format for business responsibility and sustainability reporting for listed companies will bring in greater transparency through disclosure of material environmental, social, governance (ESG) related information.

The roundtable was attended by senior-level participants from the industry, comprising managing directors, chief executive officers and chief financial officers along with representatives from industry bodies FICCI, CII and Assocham as well as the fund management industry.

It was acknowledged by the participants that the ESG concerns are getting bigger in the corporate landscape today and Sebi’s initiative on revisiting the disclosures is critical and timely, the regulator noted.

Under the proposal, the new BRSR format covering ESG perspective would be applicable for the top 1,000 listed entities by market capitalisation.

The participants represented diverse sectors, including pharmaceutical, chemicals, textiles, power, aviation, consumer goods, IT and financial services. The deliberations in the roundtable will assist SEBI in finalising the BRSR format.

According to Tyagi, Sebi’s effort will be to finalise the new disclosure requirements for sustainability reporting keeping in mind a balance between the Indian context, national priorities and preparedness, with global relevance.

In August 2020, SECI had released consultation paper on on the format for Business Responsibility and Sustainability Reporting – Download it here

SEBI proposes format for business responsibility and sustainability reporting for listed companies