Business responsibility and sustainability reporting
Also called: BRSR · Topic: Industrial Policy, Public Sector, MSMEs and Disinvestment · NCERT: Beyond NCERT
Meaning
Business Responsibility and Sustainability Reporting (BRSR) is SEBI's compulsory report on how a large listed company affects the environment and society. It also covers how the company is governed. Together these are known as ESG (environmental, social and governance). It covers matters such as emissions, energy and water use, worker welfare and board practices. Investors use it to judge risks that do not show up in financial accounts.
Example
SEBI introduced BRSR in 2021. It became mandatory for India's top 1,000 listed companies from FY 2022-23, replacing the older Business Responsibility Report (BRR, 2012). Its principles come from the National Guidelines on Responsible Business Conduct (NGRBC, 2019). BRSR Core, a set of key indicators that must be checked by an outside assurer, is being phased in.
Don't confuse with
- Corporate social responsibility (CSR): CSR under section 135 of the Companies Act requires eligible firms to spend money on social causes. BRSR requires listed firms to disclose their ESG performance.
Related concepts
- Corporate governance
- Independent director
- Related-party transaction
- Beneficial ownership
- Proxy advisory firm
- Shareholder activism
- Corporate social responsibility
- ESG