SEBI has disclosure requirements under Business Responsibility and Sustainability Report

New Delhi: The regulator body SEBI on Monday came out with disclosure requirements under business responsibility and sustainability reporting, covering environmental, social and governance perspectives, which will be applicable on the top 1,000 listed entities by market capitalisation. The new report, Business Responsibility and Sustainability Report (BRSR) will replace the existing Business Responsibility Report (BRR). The move is expected to bring in greater transparency and enable market participants to identify and assess sustainability-related risks and opportunities, SEBI said in a statement.

Under BRSR, listed entities need to disclose an overview of the entity’s material ESG (environmental, social and governance) risks and opportunities, approach to mitigate or adapt to the risks along with financial implications of the same.

In addition, sustainability-related goals and targets and performance against the same need to mentioned in the report, it added. Environment-related disclosures cover aspects such as resource usage (energy and water), air pollutant emissions, green-house (GHG) emissions, transitioning to a circular economy, waste generated and waste management practices, bio-diversity.

Social related disclosures would cover the workforce, value chain, communities and consumers.

In the social related disclosure, SEBI said entities need to disclose about gender and social diversity including measures for differently-abled employees and workers, turnover rates, median wages, welfare benefits to permanent and contractual employees/workers, occupational health and safety, training. At the communities level, listed entities will have to make disclosures on Social Impact Assessments (SIA), Rehabilitation and Resettlement, Corporate Social Responsibility, among others.