SEBI Committee Mulling On Globally Aligned ESG Disclosure Norms—Exclusive

It is expected that the current Business Responsibility and Sustainability Reporting (BRSR) standards will be presented in a new avatar soon such that they align with the International Financial Reporting Standards (IFSR).

The IFSR standards provide for two sets of disclosures, which are sustainability-related and climate-related, also known as S1 and S2 respectively. Currently, it is being discussed to incorporate these in the new upcoming disclosure standards, NDTV Profit was told.

It was further mentioned that the Shakti Sustainable Energy Foundation was also onboarded by the committee for help in research purposes.

The regulator’s committee is also mulling accreditation for the verification bodies of ESG disclosures made by the listed companies, the people quoted above mentioned. These bodies might be accredited by the National Board of Accreditation, however, this is only at the discussion stage at the committee.

An email from Wednesday for a response from the regulator did not elicit a response.

It is expected that the current Business Responsibility and Sustainability Reporting (BRSR) standards will be presented in a new avatar soon such that they align with the International Financial Reporting Standards (IFSR).

The IFSR standards provide for two sets of disclosures, which are sustainability-related and climate-related, also known as S1 and S2 respectively. Currently, it is being discussed to incorporate these in the new upcoming disclosure standards, NDTV Profit was told.

It was further mentioned that the Shakti Sustainable Energy Foundation was also onboarded by the committee for help in research purposes.

The regulator’s committee is also mulling accreditation for the verification bodies of ESG disclosures made by the listed companies, the people quoted above mentioned. These bodies might be accredited by the National Board of Accreditation, however, this is only at the discussion stage at the committee.

An email from Wednesday for a response from the regulator did not elicit a response.

As per one of the people in the know, the potential changes are only in a discussionary phase and will not be adopted without elaborate consensus with all industry stakeholders, including the smaller players. Once all relevant stakeholders are heard and only when it is established that global alignment of disclosure norms will have a positive impact on the listed entities, the regulator will move forward with regulation proposals.

Interestingly, while speaking at the summit of industry body FICCI, the regulator's whole-time member Amarjeet Singh raised concerns over greenwashing and misleading ESG disclosures. He cited cases where companies falsely claimed no environmental impact despite facing legal action for violations. He also pointed out discrepancies in sustainability reports, such as unverified claims about recycled materials in the automobile sector.