Sustainability Scores Podcast: BRSR Core

Host: Vikram Shetty

Guest: Anivishi

• Background: Over two decades in the industry.
• Company: Ad Quest Sustainable Solutions.
• Role: Leads sustainability initiatives with corporates and educational institutions.

Introduction to BRSR

• BRSR: Business Responsibility and Sustainability Reporting.
• Transition from BRR: Raised the profile of sustainability in corporate reporting.
• Regulatory Journey: Voluntary in 2021, mandatory in 2022-2023 for top 1000 companies.
• Recent Developments: Sevi mandated third-party verification of BRSR reports in March 2023.

BRSR Core

• Definition: Third-party audit and assurance of BRSR reports.
• Applicability: Currently for top 150 companies; plan to extend to 1000 by 2026-2027.
• Assurers: Likely to include big financial audit firms.

Preparing for BRSR Core

• Reporting Readiness: 90% of BRSR Core data is already covered by current BRSR requirements.
• Steps: Start by understanding BRSR Core and collecting relevant data during current BRSR preparations.
• Focus Areas: Accurate data collection, management endorsement, and early preparations.

Impact on the Corporate Sector

• Mid and Small Caps: Significant due to reporting on sustainability for the first time.
• Cultural Shift: Companies need to integrate sustainability into their core operations.
• Extended Supply Chain Impact: Expected to include supply chain reporting in the future.

ESG Ratings in India

• Emergence of ERPs: ESG Rating Providers registered with SEBI will rate Indian companies.
• Global vs. Local Ratings: Companies may need both Indian and global ESG ratings.
• Future Guidelines: Awaiting further details from SEBI on specific rating criteria.

Mutual Fund Guidelines

• ESG Funds: 65% investment in BRSR Core reporting companies, 35% in BRSR reporting companies.
• Investment Attractiveness: Adherence to BRSR Core increases investment appeal.

Practical Advice for Corporates

• Prepare Early: Start collecting BRSR Core data alongside current BRSR reporting.Secure management commitment.
• Internal Data Collection: Utilize Excel sheets for initial data collection and ensure department collaboration.

Future Outlook

• Digitization of Reporting: Move towards digital tools for better data management and analysis.
• Public Disclosure: BRSR and BRSR Core reports to be available publicly and in digital formats for transparency.
• Potential for Scorecards: Tools to benchmark and compare ESG performance across companies and sectors.

Conclusion

• Focus on SDGs: Align BRSR efforts with Sustainable Development Goals for broader impact.
• Evolving Landscape: Companies need to adapt to changing regulations and expectations in sustainability reporting.

Contact Information

• Guest Information: Anivishi can be contacted via LinkedIn.
• Resources: Link to SEBI press release and BRSR Core infographic will be shared in show notes.