ISO 9001:2015

SECTORAL ANALYSIS OF PRINCIPLE 2 OF BRSR FILINGS

The landscape of global sustainable reporting is experiencing rapid transformation. In light of the increasing challenges related to environmental, social, and governance aspects worldwide, Indian business leaders have acknowledged the significance of aligning their corporate purpose with the broader concerns of key stakeholders, transcending mere wealth creation. This shift is propelled by shifts in consumer behavior, preferences, and the growing demand from investors for stricter regulations regarding nonfinancial disclosures on a global scale. This research investigates the accuracy and comprehensiveness of sustainability reports, as initially recommended, and later mandated by SEBI, submitted by Indian companies in the financial year 2022-23. The analysis encompasses 91 out of the 95 top 100 companies based on market capitalization that filed BRSR reports in XBRL format until September 1, 2023. The companies are categorized into various industry sectors, and their reports are compared and analyzed. The evaluation of BRSR filings focuses on completeness and data under Principle 2: "Businesses should provide goods and services in a manner that is sustainable and safe." Sectors like Auto, Engineering and IT have reported R&D and CAPEX spending which have environmental and social impact in detail. Companies under Auto, Cement, Infrastructure and FMCG sectors have reported high percentages of sustainable sourcing. Most of the companies have processes in place to reclaim products for reusing, recycling and disposing at the end of life The study concludes that there is a need for enhancement in the quality of the filings. While companies have provided detailed responses to qualitative questions, the data is either insufficient or not presented in the correct format when it comes to quantitative queries. This analysis can serve as a valuable reference for both regulators and companies, offering insights to improve regulatory filings for sustainability reports and refine the report structure for more effective and transparent communication with all stakeholders.


DOI:

Article DOI: 10.62823/6.2(II).6711

DOI URL: https://doi.org/10.62823/6.2(II).6711


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