Advisory report on format of business responsibility and sustainability reporting
Introduction: Recently Security Exchange Board of India (SEBI) has issued Advisory report on format of business responsibility and sustainability reporting, before analyzing such it is necessary to determine that to whom this reporting is applicable, what are the various clauses relating to this reporting and whether there is any update on such reporting or not. In this article we will cover all the aforesaid things.
Applicability:Security Exchange Board of India (SEBI) has mandated top 1000 listed entities by market capitalisation, to file Business Responsibility Reports (BRR) as per the disclosure requirement provided under National Guidelines on Responsible Business Conduct (NGRBCs). This step is taken to create more transparency and accountability on part of business entity; they shall clearly disclose that what they have provided to society.
In order to have standard reporting Committee on Business Responsibility Reporting constituted by Ministry of Corporate Affairs (MCA) has provided their report with recommendation which are as follows:
- Business Responsibility Report be called the Business Responsibility and Sustainability Report (BRSR).
- The comprehensive format for reporting as recommended by the Committee for listed entities is enclosed at Annex – 1.
- To elaborate the need of every question and to understand its scope guidance note has been provided in Annex – 2.
- The proposed format will be applicable to listed entities on a voluntary basis for the financial year 2020 – 21 (for those who choose not to adopt the new format, the existing format will apply) and the proposed format will be mandatorily applicable from the financial year 2021-22.
- If any suggestion is there by the business entity or any other person then they can provide such through email to Pradeep Ramakrishnan, General Manager, at firstname.lastname@example.org and Ishita Sharma, Manager, at email@example.com, on or before September 18, 2020 (In specified format).
Report consists two section i.e.
SECTION A: GENERAL DISCLOSURES in which information demanded is relating to company and its various segments, in all it consists 30 clause and in some of which information will be auto- populated based on other forms filled by entity.
SECTION B: MANAGEMENT AND PROCESS DISCLOSURES consists disclosure requirement in relation to various structures, policies and processes adopted by business. This section runs into 12 clauses.
SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE: The reporting under this clause has been divided into nine core principles and each principle consists various clauses under which reporting is required this has been.
It is cleared from this format that government is of the view to get every single important details relating to organization and while providing such information entity shall ensure that it provides information in accordance with guidance note provided by the government in this regard.