Environmental, Social and Governance Requirements and Guidelines for Entities in India. (Chhajed & Doshi)
Business OpportunitiesNovember 1, 2022
PrimeGlobal member firm Chhajed & Doshi share their expertise on Environmental Social Governance Reporting, and explain here the requirements for the top 1,000 listed companies for FY 2022-23 and onwards.
If you want to learn more about Environmental and Social Responsibility and how your firm can get involved, you can read more on the PrimeGlobal ESR Page here.
Member firm, Chhajed & Doshi are passionate about their Environmental Social Governance Division, and here they explain how and why, the Securities and Exchange Board of India have a mandated 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 R𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 R𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 (𝗕𝗥𝗦𝗥) for the top 1,000 listed companies (based on market capitalization) for FY 2022-23 and onwards.
This move has been considered very much 'a step in the right direction' as there is an increased focus from investors and other stakeholders seeking businesses to take responsiblity towards the environment and society. Adapting to, and mitigating climate change impact, inclusive growth, and transitioning to a sustainable economy have emerged as major issues globally, and Partner Abhinav Chhajed explains the importance of these requirements for entities wishing to do business both in India, and on a global scale.
The Securities and Exchange Board of India (SEBI) is the regulator for securities (listed entities), and commodity market in India. The requirement for BRSR means that companies have to be accountantable on topics that impact on their environment and social footprint, and issues such as waste and pollution, deforestation, climate change, and greenhouse gas emissions are taken particularly seriously.
Furthermore, working conditions, health and safety, employee relations, and conflict are high on the agenda of governance, as is financial accountability, such as tax strategy, corruption and bribery, board diversity and structure, and executive remuneration.
Chhajed & Doshi not only address some of those aspects internally through their own policies, they are able to assist companies who are required to do the same, and have produced guidance on ESG and BRSR. Moreover, Chhajed & Doshi are eligible to provide assurance services to listed entities in India.
Chhajed & Doshi offer a three segment approach to BRSR.
The introduction is a general overview of the business, including activities, products and services, and geographical locations. In addition, the introduction covers number of employees and the group structure.
Management and Process
This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the NGRBC Principles and Core Elements
Principle Wise Performance
This section is aimed at helping businesses demonstrate their performance in integrating the Principles and Core Elements with key processes and decisions. The information sought is categorized as “Essential” and “Leadership”. While the essential indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially, environmentally, and ethically responsible.
“This move has been considered very much 'a step in the right direction' as there is an increased focus from investors and other stakeholders seeking businesses to take responsibility towards the environment and society. Adapting to, and mitigating climate change impact, inclusive growth, and transitioning to a sustainable economy have emerged as major issues globally” Abhinav Chhajed, Partner, Chhajed & Doshi