Business responsibility, sustainability report mandatory for top 1,000 listed cos from FY23: SEBI
The move is expected to bring in greater transparency and enable market participants to identify and assess sustainability-related risks and opportunities
New Delhi: Regulator SEBI on Thursday decided to have a new format for business responsibility and sustainability reporting, and top 1,000 listed companies will be compulsorily required to prepare such reports from financial year 2022-23.
The requirement will be applicable to the top 1,000 companies in terms of their market capitalisation.
The move is expected to bring in greater transparency and enable market participants to identify and assess sustainability-related risks and opportunities.
The report will be called the Business Responsibility and Sustainability Report (BRSR) and it will replace the existing Business Responsibility Report (BRR) filed by companies, SEBI said in a press release after conclusion of its board meeting.
The BRSR will be applicable to the top 1,000 listed entities on a voluntary basis for the financial year 2021-22 and on a mandatory basis from the financial year 2022-23.
According to SEBI, the BRSR will lay considerable emphasis on quantifiable metrics, which allows for easy measurement and comparability across companies, sectors and time periods.
Further, the disclosures on climate and social (employees, consumers and communities) related issues by an entity have been significantly enhanced and made more granular under the new format.
The disclosures under the BRSR will be segregated into essential (mandatory) and leadership (voluntary) indicators.
It also provides for inter-operability of reporting—the entities which prepare sustainability reports based on internationally-accepted reporting frameworks can cross-reference the disclosures sought under the BRSR to the disclosures made under such guidelines, as per SEBI.
The new reporting requirements are expected to bring in greater transparency through disclosure of material environmental, social and governance-related information to enable market participants to identify and assess sustainability-related risks and opportunities.
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