- The conduct must be ethical, transparent, and accountable.
- Offer sustainable and safe goods and services
- Preserve the well-being of all employees.
- Regard the interests of all stakeholders.
- Be thoughtful towards human rights.
- Take into account the environmental aspect.
- Must be responsible and transparent while engaging and
influencing the public.
- Nurture growth and equitable development.
- Responsibly deal with consumers
is an ESG investing framework that entails corporate strategy, broad oversight,
risk management, performance, and communication of companies. Also, BRSR
addresses reputational and regulatory risks. Moreover, the critical role of
BRSR is to align various regulatory frameworks with the long-term
sustainability goals of the company.
recently inaugurated Business Responsibility and Sustainability Reporting
training programs for all professionals to provide corporate practitioners and
support companies in benchmarking. The program will assist the participant in
building a roadmap of BRSR with other globally used ESG metrics and
Nowadays, every company must submit a statement highlighting
ESG-related challenges, targets, and achievements. It is mandatory to recognize the potential
risks and opportunities the company faces in its journey towards creating a
socially and environmentally aware company.
The increasing climate consciousness among
Indian companies is visible from the rising number of those devoted to the
Science-Based Target Initiative (SBTi). Science-Based Targets are targets for
reducing GHG emissions and the level of decarbonization that, as per climate
science, are required to limit the global temperature increase to 1.5-2ºC
compared to pre-industrial temperature levels. This ensures that the company is
taking action to diminish emissions at a pace that is in line with keeping
warming below 1.5º/ well-below 2C.
is estimated that by 2020, 52 companies have committed to SBTi with a
remarkable growth of more than 37% over 2019, as per CDP. Also, India is now
the leader of emerging economies as leading companies are devoted to SBTi; it
stands at the sixth position.
below are a few examples of Indian companies pledging to achieve net-zero
- A leading Indian IT Company has taken the lead in cutting
emissions with the help of advanced water system controls and transitioning
from leased to owned facilities, thereby consolidating the company’s use of
office space and reducing its carbon footprint.
- Another leading multinational Indian automobile
manufacturing company has committed to reducing Scope 1 and Scope 2 greenhouse
gas (GHG) emissions by 47% and Scope 3 GHG emissions by 30% by 2033.
- A leading Indian integrated mining and resources producer of
zinc, lead, silver and cadmium commissioned a solar power plant with a 12 MW
capacity to increase its renewable energy portfolio, which reduces Its carbon
footprint by approximately 14,000 MT a year.
- Leading cement Giant
had committed to the SBTi framework in July 2020. In March 2021, it
became the second Indian cement company to have its emissions reduction aims
verified by the SBTi.
- Another of India’s top cement companies has
pledged to reduce Scope 1 GHG emissions by 12.7% per ton of cementitious
materials by 2030.
As per the Glasgow Climate Change Conference showcased in
November 2021, several nations took far-reaching decisions in their collective
effort to limit global temperature rise to 1.5 degrees. Large enterprises are
pivotal for powering this change. Initiative and reporting on BRSR will support
us in reducing and tracking the impact of global emissions. BRSR can strengthen
our efforts to craft a resilient movement to curb adverse climate change and
greenhouse gas emissions. Also, BRSR
shares the essential steps to be taken by large corporates to enable us to live
in a better world.
This revised reporting mechanism is created to
spread awareness and encourage better investment decisions. It is expected to
align with global reporting standards and contribute towards sustainable and
inclusive development in the country. With SEBI enforcing ESG statements, the
new reporting mechanism will enable more transparency and accountability. Also, it can result in more transparency
towards sustainability awareness and performance standards of companies.
Lokesh Bohra, Senior Vice President, Social and