The top 1,000 listed entities by market cap can adopt the new format voluntarily for the financial year 2020-21. It will become mandatory from the financial year 2021-22.
SEBI (Securities and Exchange Board of India) has released for public consultation a new format for business responsibility and sustainability reporting, applicable to the top 1,000 listed entities by market cap.
“The performance of a company must be measured not only on the return to shareholders, but also on how it achieves its environmental, social, and good governance objectives,” SEBI said. “Therefore, globally there is a growing recognition and emphasis on stakeholder model of governance amongst all stakeholders including institutional investors.”
The disclosures recommended in the business responsibility and sustainability report are intended to enable businesses to engage more meaningfully with their stakeholders, and encourage them to go beyond regulatory financial compliance and report on their social and environmental impacts, the paper says.
The top 1,000 listed entities by market cap may adopt the new format on a voluntary basis for the financial year 2020-21. Entities that choose not to adopt the new format will still have to use the existing format.
From the financial year 2021-22, the new format will be mandatory.
The new format, available here, is open to feedback until 18 September 2020.