Nandita Saxena, Institute of Law, Nirma University
Rudram Upadhyay, Institute of Law, Nirma University
ABSTRACT
The Securities and Exchange Board of India (SEBI) has introduced Business Responsibility and Sustainability Reporting (BRSR) indicators to enhance ESG disclosures and audits for top companies in India. The timeline for BRSR implementation includes its introduction in 2012 as a statutory reporting obligation, with key milestones such as the introduction of BRSR Core and Assurance for Value Chain in 2023. By 2024, the top 150 listed companies must obtain reasonable assurance of BRSR, ensuring independent assessment of ESG performance. Subsequent years will see increasing compliance requirements for companies, with the top 250, 500, and 1,000 listed entities mandated to adhere to BRSR Core and Assurance for Value Chain by 2025, 2026, and 2027 respectively.1 These timelines reflect a progressive approach towards integrating ESG considerations into corporate governance practices in India. This is a set of core indicators that all listed companies must disclose. It includes essential indicators that are mandatory for all entities under the BRSR report, such as details of the company's sustainability policies, goals, and targets; details of the company's impact on the environment, health, and safety of employees and other stakeholders; and details of the company's efforts to promote human rights and support social and economic development. This paper delves into the impact of these indicators on various stakeholders vis investors, customers, employees, regulators and communities. The BRSR indicators include disclosures around details of the company's sustainability policies, goals, and targets; details of the company's impact on the environment, health, and safety of employees and other stakeholders; and details of the company's efforts to promote human rights and support social and economic development. These disclosures not only mandate reporting on ESG metrics but also encourage companies to provide reasonable assurance of their ESG performance. This assurance involves an independent assessment by a qualified third-party provider to verify the credibility and transparency of a company's ESG disclosures. Hence, the indicators aim to engage the companies with the stakeholders with ensured responsibility and transparency thus aiming to achieve the following Sustainable Development Goals:
