Frequently Asked Questions (FAQs)
Mandated by SEBI for the top listed companies (by market capitalization), BRSR requires detailed disclosures on ESG performance, replacing the earlier Business Responsibility Report (BRR). It aims to enhance transparency and encourage responsible business conduct.
Investors recognize that strong ESG performance can indicate better risk management, operational efficiency, resilience, and long-term financial performance. They also face pressure from their own stakeholders to invest responsibly.
The ‘G’ in ESG specifically addresses governance structures. Strong governance (e.g., board oversight of ESG issues, transparent reporting, ethical conduct) is fundamental to effectively managing environmental and social risks and opportunities.
Greenwashing is the practice of making misleading or unsubstantiated claims about the environmental benefits of a product, service, technology, or company practice, potentially leading to reputational damage and legal challenges.
Key initial steps include conducting a materiality assessment to identify key ESG issues, securing leadership commitment, setting measurable goals, assigning responsibilities, establishing data collection processes, and integrating ESG into decision-making.
