Decoding the Business Responsibility & Sustainability Reporting  

A Broad Overview on Assurance & Its Relevance  

Relevance of Sustainability Assurance Engagements in Current Context – Globally as well as in India 

Regulatory requirements: A separate set of performance parameters, BRSR Core, which are mentioned in Annexure 1, vide a consultation paper had been released by SEBI in March 2023, vide regulation # 34 (2) (f) LODR. Further, SEBI’s circular, dated the 12th of July 2023, calls for assurance of the reported BRSR Core by the top 1000 listed companies in phases, as well as reporting and assurance of the BRSR Core by the value chain for the top 250 listed companies, on a comply-or-explain basis.  

Investors Requirements: Various B2B investors are seeking third party assurance of the ESG performance disclosed by the companies prior to taking investment related decisions.  

ESG Rating Agencies: Various ESG Rating frameworks have questions that seek assurance for different kind of ESG performances that have been disclosed by companies. Additional marks are provided if the disclosures are third party endorsed. This in turn, facilitates companies to improve their ESG score and attract better investment and or better business match making.  

Investment in Green Funds: Various green based financial instruments are seeking assurance of the ESG performance of their companies/impacts of their projects, prior to seeking approvals as green fund before investment in the market. 

Demonstration of Transparency & Credibility for the Information Reported: Various stakeholders, primarily the shareholders, regulatory authorities, local communities, customers, are seeking an external assurance of the company’s ESG performance and long-term sustenance.  

Requirement by companies based abroad: The companies in the value chain of UK, EU, US, etc. based companies are gradually seeking independent assurance against various requirements emerging out of their local ESG norms.