It was in 2015 of the Paris Agreement and United Nations 17 Sustainability Goals (SDG’s) that several countries introduced mandatory ESG Reporting requirements.

According to a survey by PwC India, 51% of India’s top 100 companies have voluntarily begun disclosing carbon emissions, with 31% revealing their net-zero targets. This demonstrates India’s commitment to sustainability reporting as it transitions to the Business Responsibility and Sustainability Reporting (BRSR) Core.

India’s SEBI introduced Business Responsibility and Sustainability Reporting (BRSR) starting in 2023-24 with the top 150 listed companies by mark.

Companies prioritize robust governance practices that involve transparency, ethical behaviour, risk management, and stakeholder engagement. Companies that prioritize these aspects contribute to sustainable and responsible business operations.

Executive Compensation:

ESG reporting includes details about executive compensation structures. n Transparency regarding pay ratios (e.g., CEO-to-median employee pay) is essential.

Companies should align executive compensation with long-term sustainable performance.

Anti-Corruption Measures:

Companies report on their anti-corruption policies, procedures, and training programs. Disclosures cover efforts to prevent bribery, fraud, and unethical practices.

Transparency regarding political contributions and lobbying activities is also relevant.

Risk Management and Internal Controls:

Companies describe their risk management processes and internal control systems. Effective governance ensures proper risk assessment and mitigation.

Reporting includes information on cybersecurity, data privacy, and other risks.

Stakeholder Engagement:

Companies engage with stakeholders (employees, customers, investors, communities) to understand their concerns.  Reporting includes details on stakeholder consultations, feedback mechanisms, and responsiveness.

Ethical Business Practices:

Companies disclose their commitment to ethical conduct, including adherence to codes of ethics.  Reporting covers areas such as human rights, labor practices, and supply chain management.

Whistleblower Policies:

Companies outline their whistleblower policies and mechanisms for reporting misconduct. Encouraging a culture of transparency and accountability is essential.

Sustainability Committees and Reporting Frameworks:

Some companies have dedicated sustainability or ESG committees. Reporting frameworks (e.g., GRI, SASB) guide governance-related disclosures.