May 11, 2021
Summary of the circular issued by SEBI on 10/05/2021
Business Responsibility and Sustainability Reporting by listed entities under LODR Regulation, 2015
Further to the recent amendment to LODR, 2015 vide SEBI Circular dated 05/05/2021on Business Responsibility Reporting (BRR), SEBI has now notified the format and guidance note, which details out the scope of required disclosures in the new reporting requirements on Environmental, Social, and Corporate Governance (ESG) parameters called the Business Responsibility and Sustainability Report (BRSR).
BRSR seeks disclosures from listed entities on their performance against the Nine Principles of the ‘National Guidelines on Responsible Business Conduct’ (NGBRCs), which is prescribed by MCA and reporting under each principle is divided into essential and leadership indicators. The essential indicators are required to be reported on a mandatory basis while the reporting of leadership indicators is on a voluntary basis.
BRSR will replace BRR and has to be filed by the top 1000 listed entities (by market capitalization) from the Financial Year 2022-23. These entities may voluntarily file BRSR for the FY 2021-22.
This circular is available on our free to use website www.ca2013.com for your quick reference.