Page 76 - Quick Insights Book 2022

Sustainability Reporting 20

Globally, there is an increase in awareness and activism
amongst stakeholders who are demanding business
accountability for the social and environmental impacts on
issues such as climate change, gender equality, environmental
degradation, etc. Sustainability Reporting is an emerging
discipline encompassing the disclosure and communication of
an entity’s non-financial environmental, social, and governance
(ESG) performance and its overall impact. Over the last
few years, more and more entities are now preparing and
disclosing their sustainability reports either under a mandate
or voluntarily as per the reporting frameworks/ standards
provided by standard-setting bodies/regulators. Sustainability
reporting will only be beneficial if it is of sufficient quality and
the market understands and trusts the framework. It is essential
that sustainability reporting framework delivers information that
is fair, balanced, understandable, transparent, consistent, and
comparable.

India is one of the early adopters of sustainability reporting for
listed entities amongst its various other global peers. In 2012,
requirement of Business Responsibility Report (BRR) containing
ESG (Environment, Social and Governance) disclosures was
introduced for adoption by the listed entities. Recently, in
May 2021, SEBI has introduced new reporting requirement
called the Business Responsibility and Sustainability Report
(BRSR) with the intent towards having quantitative, qualitative
and standardized disclosures on ESG parameters. The
BRSR is a notable departure from the existing BRR and set
a significant step towards bringing sustainability reporting at
par with financial reporting. Further, companies will be able to
better demonstrate their sustainability objectives, position and
performance resulting into long term value creation.

Securities and Exchange Board of India (SEBI) has introduced
revised disclosure norms under Business Responsibility
Sustainability and Sustainability Report (BRSR) format for the top 1,000
listed entities by market capitalisation from the financial year
Reporting 2022-23. The new BRSR is intended towards standardizing
the disclosures on ESG parameters to enable comparability
across companies, sectors and time. Such disclosures shall
also enable entities to engage more meaningfully with their
stakeholders, by encouraging them to look beyond financials
and towards social and environmental impacts.

OPPORTUNITIES FOR CHARTERED
ACCOUNTANTS
The role of Chartered accountants in promoting and reporting
sustainability is very broad. They can use their skills of
aggregating data into useful information, help with cost analysis
of environmental decisions and be involved with the audit and
assurance of corporate social reports.

Quick Insights on Professional Opportunities for Chartered Accountants 63