The Securities and Exchange Board of India (SEBI) has proposed strengthening regulations on environmental, social and governance disclosures by listed entities to enhance their credibility.
In May 2021, SEBI named 1,000 listed companies to make ESG disclosures as per the Business Responsibility and Sustainability Report (BRSR) parameters from FY2023.
In a discussion paper, SEBI’s ESG advisory committee is considering regulations for mandated assurance of corporate sustainability reporting. In addition, it seeks to:
- Make disclosures relating to leadership indicators essential;
- Introduce sector-specific disclosures for greater reporting standardisation;
- Adding reporting boundaries, including segment disclosures for conglomerates operating in multiple segments, and providing disclosures on a consolidated basis.
More visibility and transparency has been envisioned for ESG disclosures by supply chain participants of companies.
In FY22, more than 175 companies voluntarily reported on the BRSR framework.