SEBI (Securities and Exchange Board of India) has issued Circular No. SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated 12th July 2023, introducing revisions to the BRSR (Business Responsibility and Sustainability Reporting) format. The circular also introduces BRSR Core Assurance for listed entities and value chain partners. This article provides an overview of the applicability of BRSR Core Assurance and the changes in the revised BRSR format.
The circular outlines the applicability of BRSR Core Assurance for listed entities based on their fiscal year and ranking. It also highlights the disclosure and assurance requirements for value chain partners. The article further discusses the criteria and considerations for selecting a BRSR Core Assurance provider, including expertise and conflict of interest restrictions.
The revised format of BRSR is presented, highlighting key changes and additions in various sections. These changes include additional disclosures related to assurance providers, accounts payable, openness of business, employee well-being, gender wage comparison, greenhouse gas emissions, waste intensity, sourcing of input materials, and more. Annexure I and Annexure II provide the formats for BRSR Core and the Business Responsibility & Sustainability Reporting format.
Applicability of BRSR Core Assurance:
| Category | FY | BRSR | BRSR Core Assurance | Applicability |
| Listed Entity | 2023-24 | Top 1000 Listed Entities | Top 150 Listed Entities | Mandatory |
| Listed Entity | 2024-25 | Top 1000 Listed Entities | Top 250 Listed Entities | Mandatory |
| Listed Entity | 2025-26 | Top 1000 Listed Entities | Top 500 Listed Entities | Mandatory |
| Listed Entity | 2026-27 | Top 1000 Listed Entities | Top 1000 Listed Entities | Mandatory |
Applicability of Disclosure and Assurance for Value Chain:
| Category | FY | BRSR Core Disclosure in Annual Report of Listed Entity | BRSR Core Assurance | Applicability |
| Value Chain partners of Listed Entity
(Top upstream and downstream Value chain partners constituting 75% of its purchases/sales by value) |
2024-25 | Top 250 Listed Entities | NA | Comply or explain basis |
| Value Chain partners of the Listed Entity
(Top upstream and downstream Value chain partners constituting 75% of its purchases/sales by value) |
2025-26 | Top 250 Listed Entities | Top 250 Listed Entities | Comply or explain basis |
BRSR Core Assurance Provider:
- BRSR Core Assurance is to be obtained from Independent Party
- Provider shall have necessary expertise
- Provide shall not have conflict of interest
- Shall not be selling product to entity or group entities
- Shall not be providing Non-Audit or Non-Assurance related services including consulting services
Changes in Revised Format of BRSR:
| Sr. No. | Headings | Key Changes/Additions |
| 1 | Section A: General Disclosures | Details w.r.t. Assurance Provider and Type of Assurance added |
| 2 | Section C: Principle 1 | Details w.r.t. Accounts payable and Openness of business added alongwith format |
| 3 | Section C: Principle 3 | Details of spending on measures towards wellbeing of employees & workers to be mentioned |
| 4 | Section C: Principle 5 | % comparison of Gross wages to females and POSH Complaints details are added |
| 5 | Section C: Principle 6 | Details w.r.t. following added
1. Bifurcation of renewable and non renewable energy to be given separately. 2. Details w.r.t. water intensity and water discharged are added 3. GreenHouse Gas Emissions (Scope1 & Scope2) related 4. Waste Intensity related |
| 6 | Section C: Principle 8 | 1. Details w.r.t. sourcing of input material has been widened from districts to India
2. Details Job Creation in small towns related added |
| 7 | Section C: Principle 9 | Information relating to data breaches is added in essential indicators & removed from leadership indicator. |
Formats:
Annexure I – Format of BRSR Core
Annexure II BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORTING FORMAT
Note: Entities that have been mandated for BRSR reporting in earlier years by market capitalization will continue with applicable compliances
The article is written by Pradnesh Kamat – Partner of MMJC!
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