BRSR

In July 2023, SEBI added new ESG metrics for mandatory disclosure under ‘BRSR Core’ for certain listed companies in India. The Business Responsibility and Sustainability Report (BRSR) format was initially introduced in May 2021 and replaced the previous Business Responsibility Report (BRR). While SEBI has stipulated a timeline for mandatory compliance under the BRSR Core, as of FY 2023, all of the top 1000 listed companies by market cap in India must file their BRSR Report.

Businesses can contribute to the development of a sustainable economy by mitigating the negative impacts of their activities on the society and environment. Moreover, investors are increasingly recognising the importance of sustainable business practices and showing a growing interest in environmentally and socially responsible businesses.

BRSR originating from the MCA report on Business Responsibility Reporting, has found its way into the regulatory provisions by way of an amendment to the Regulation 34(2)(f) of the Listing Regulations, notified on 5th May, 2021. Further, SEBI vide circular dated 10th May, 2021 introduced the format of BRSR and the guidance note to enable the companies to interpret the scope of disclosures.