Environment Social and Governance (ESG)

India has introduced new environment, social, and governance (ESG) reporting
requirements for the top 1,000 listed companies in the country by market capitalization.
The Securities and Exchange Board of India (SEBI) stipulates that the disclosure must be
made through a new format, namely the Business Responsibility and Sustainability Report
(BRSR). BRSR reporting has been made voluntary for FY 2021-22 but will be mandatory
from FY 2022-23.

The BRSR is aimed at securing transparent and standardized disclosures by companies on

their ESG parameters and sustainability-related risks. This approach is expected to help
companies better demonstrate their sustainability objectives, position, and performance to the
market, resulting in long-term value creation and increasing the ability of investors to make
informed ESG-related decisions.

How does India view ESG compliance?

In 2013, India became the first country to mandate corporate social responsibility with the
Companies Act of 2013. This tenet was previously suggested in the National Voluntary
Guidelines (NVGs) on Social, Environmental and Economic Responsibilities of Business
released in 2011 before being included in the Companies Act 2013.

Asp Disclosure Requirements Principles % of Substantiate

ects fulfilling with data
the
targets
Gen a) Overview of the General
eral company’s material managemen
environmental, social, and t and
corporate governance risks process
and opportunities and disclosures
approach to mitigate or adapt
to these ESG risks as well as
relevant financial
implications
b) Sustainability related goals
and targets and related
performance
c) Management structures,
policies, and processes
related to sustainability
Envi a) Resource usage (energy Principle 6: ‘Suzuki
Environmental Plan’
ron and water) and intensity Businesses was introduced by
ment metrics should ‘Team
involving
Suzuku’
domestic
b) Air pollutant emissions respect and and overseas affiliates
c) Greenhouse gas emissions make to build the base for
2020. It had 4 themes:
(Scope 1, Scope 2, and Scope efforts to control of global
3) protect and warming, promotion
of environmental
d) Waste generated and waste restore the conservation,
management practices environmen promotion of 3Rs
(Reduce, Reuse and
 e) Impact t. Recycle)
Reinforcement
and
of
environmental
management.
Employees Principle 3:
a) Gender and social Businesses
diversity, including measures should
for differently abled respect and
employees promote the
b) Turnover rates well-being
c) Median wages of all
d) Welfare benefits to employees,
permanent and contractual including
employees those in
e) Occupational health and their value
safety chains.
 
Principle 5:
Businesses
should
respect and
promote
human
rights.

Trai Communities Principle 8:

ning a) Social impact assessments Businesses
s b) Rehabilitation and should
resettlement promote
c) Corporate social inclusive
responsibility growth and
equitable
developmen
t.
Consumers Principle 9:
a) Product labelling Businesses
b) Product recall should
c) Consumer complaints with engage with
respect to data privacy, cyber and provide
security, etc. value to
their
consumers
in a
responsible
manner.
Gov a) Training on the principles Principle 1:
erna stipulated in the “National Businesses
nce Guidelines on Responsible should
Business Conduct” (RBC conduct and
Guidelines) for members of govern
the Board, senior managers, themselves
and employees with
b) Anti-corruption and anti- integrity,
bribery policies and in a
c) Awareness programs manner that
conducted for value chain is ethical,
partners on the principles in transparent
the RBC Guidelines and
accountable
.