ICAI’s Sustainability Reporting Standards Board now has greater role to play: ICAI President
Sustainability Reporting Standards Board of the Institute of Chartered Accountants (ICAI) will now have a greater role to play with Sebi making it mandatory from 2022-23 for top 1,000 listed companies to prepare business responsibility and sustainability reports, ICAI President Nihar N Jambusaria said on Friday.
Speaking at an event, Jambusaria noted that there are various challenges like climate change, poverty, gender inequality and proper awareness on these areas need to be spread.
He said that the institute had set up a Sustainability Reporting Standard Board last year which is taking all initiatives to spread awareness.
“With Sebi from 2022-23 making BRSR reporting mandatory for firms, the role of this board will become even more important," he said.
After conclusion of its board meeting on Thursday, Sebi in a press release said it has decided to have a new format for business responsibility and sustainability reporting, and top 1,000 listed companies will be compulsorily required to prepare such reports from financial year 2022-23. The new reporting requirements are expected to bring in greater transparency through disclosure of material environmental, social and governance-related information to enable market participants to identify and assess sustainability-related risks and opportunities.
The Business Responsibility and Sustainability Report (BRSR) will be applicable to the top 1,000 listed entities on a voluntary basis for 2021-22 and on a mandatory basis from financial year 2022-23. “Here non-financial information will be required to be reported,” Jambusaria said.
He added that the Government is also talking about "people bottom line" which is profit, people and planet.
All the corporates, therefore, now not only have to bother about profit but also take care of people and the planet, as per Jambusaria.
Underlining the importance of technology, he said that robotics, data analytics, cyber security are the buzzwords now.
“We have been talking about “ABCD” in the last two to three years,” he said referring to artificial intelligence, block chain, cyber security and data analytics and added that amidst the COVID-19 pandemic, in the past one year, ICAI had realised that these need to be learnt very fast.