We support our clients in developing credible Business Responsibility and Sustainability Reports

An increasing need from investors for more information

Over the past four decades, reporting has evolved in response to organizations’ focus on addressing investors’ demand for more information. However, despite this evolution, research indicates that investors believe disclosure shortfalls remain, especially in the reporting of strategy, risks and future performance. Also, non-financial information, which is often disclosed in different ways, is not easily comparable between organizations. The need for more information related to Environmental and Social Governance (ESG) was never in such demand earlier

Investors agree that ESG aspects present risks and opportunities that have been neglected for too long and also assert that sustainable returns require a sharper focus on corporate governance, environmental and social considerations. The importance of disclosure and scrutiny of non-financial information is set to grow in the years ahead. There is a growing belief among investors about recent environmental and social scandals driving a need to re-evaluate non-financial disclosures and the information already available. Investors believe the biggest motivator for companies to report ESG information is its potential to impact companies’ reputation among their customers and regulators.

A new mandatory requirement in India

The market regulator SEBI has mandated the top 1000 listed companies to publish Business Responsibility and Sustainability Report (BRSR) from the FY 2022-23 onwards every year. This is a significant development that would demand ESG disclosures from these companies and aimed at interest of investors.

The quantitative and standardized disclosure parameters will enable ESG performance comparability among companies, sectors and time. Such disclosures will help investors make informed decisions. This will particularly help responsible investors who invest with motive of both profit and purpose.

Possible challenges

Such comprehensive, detailed and quantitative ESG related disclosures are now mandated for the first time. Majority of the Indian listed companies may face challenges in developing the BRSR in the initial years.

How we add value

Our professionals have been supporting clients in disclosing ESG information as per GRI / CDP / TCFD / SASB / IR and similar standards/guidelines/frameworks. They can support in developing the BRSR.

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