Q. With reference to Business Responsibility and Sustainability Report, consider the following statements:
1. The disclosures under this report are based on ESG parameters.
2. The reporting mechanism has been introduced by Ministry of Commerce and Industry.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:
  • Statement 1 is correct: Business Responsibility and Sustainability Report is framed around three aspirations: Adapting to and mitigating climate change impact, inclusive growth and transitioning to a sustainable economy. The disclosures are based on ESG parameters in BRSR and therefore, are an up-scale from its predecessor, BRR (Business Responsibility Reporting). 
  • Statement 2 is incorrect: The Securities and Exchange Board of India (SEBI) introduced BRSR, a reporting mechanism, vide circular dated May 10, 2021. It is a standardised reporting format that will give a baseline to draw comparison between environmental, social and governance (ESG) goals across companies and sectors. 

Source: Article