India Preparing for Digital Sustainability Reporting

26 Июл 2022
Actual, BRSR, EFRAG, XBRL
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The vanguard of digital reporting, India, is preparing to enable the filing of the new Business Responsibility and Sustainability Report (BRSR) in XBRL format. The two major stock exchanges in India announced the availability of online XBRL submission portals for listed companies. If your business is active in India, then filing BRSR could be mandatory in the financial year 2022-2023.

This month, two of the principal stock exchanges of India have issued circulars announcing online XBRL submission portals for listed companies. Both the National Stock Exchange of India (NSE) and the BSE (formerly known as Bombay Stock Exchange) have reported on the availability of this online XBRL for Business Responsibility and Sustainability Report (BRSR) reporting.

The BRSR filing is developed by the Securities and Exchange Board of India (SEBI) and is the “more detailed and comprehensive” replacement for the current Business Responsibility Report (BRR). As of now, this BRSR filing is -just like the ongoing EFRAG drafts— voluntary. Whereas the latter is still in the draft phase and awaits further developments to become part of the reporting environment, the BRSR is voluntary in the 2021-2022 financial year. During this period, Indian businesses are allowed to “establish and improve their reporting processes”. Yet, in the second phase of the BRSR development (the fiscal year 2022-2023), the BRSR shall be mandatory for the top 1,000 companies in India. Currently, both the XBRL and PDF format are required for the BRSR filing.

eXtensible Business Report Language (XBRL) is a standard global framework which enables the effective exchange of data using the (online) XBRL reporting format. With various countries hopping on the global trend of XBRL adaptation, implementing an XBRL software solution results in various benefits and is deemed as a requirement to maintain efficiency and stay competitive in the current marketplace.

With the flexibility and extensibility of XBRL, enterprises can utilize and extend taxonomy to fit their specific needs. The usage of XBRL creates emphasise on these standardized “tags”, resulting in enhanced and automatic validation, comparison, and analysis of data. While this reduces labour due to efficient and effective “tagging”, using the overarching and commonly-known XBRL taxonomy for filing data creates immediate comparable data and financial transparency for investors.

Moreover, to assist these listed entities in understanding the “updated disclosure requirements and concepts associated with the new format of BRSR”, the National Stock Exchange of India (NSE) has in cooperation with the Stakeholder Empowerment Services (SES) released 38 sector-specific guides in understanding the BRSR format. These guides provide in-depth information regarding the parameters in the format and give guidance on how to report and measure these parameters.

 

Sources:

https://www.xbrl.org/news/india-gears-up-for-digital-sustainability-reporting/

https://static.nseindia.com/s3fs-public/inline-files/NSE_Circular_08072022_1.pdf

https://www.nseindia.com/resources/insights-panel-discussions-seminars-corporate-governance

EFRAG launches draft Sustainability Report Standards

22 Май 2022
Actual, EFRAG, ESEF, IFRS, Sustainability
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The European Financial Reporting Advisory Group (EFRAG) has released exposure drafts (ED) of the European Sustainability Reporting Standards (ESRSs). With this proposal, requirements are set out for European companies to report on various environmental, social and governance (ESG) topics including societal impacts, risks and opportunities.

The European Commission’s proposal for a Corporate Sustainability Reporting Directive (CSRD) envisages the adoption of the EU Sustainability Reporting Standards (ESRS). Regarding the latter, EFRAG was requested to assist the European Commission in establishing Sustainability Reporting Standards.

EFRAG, as a technical advisor, aims at providing relevant stakeholder information and analyses on sustainability and ESG subjects to the European Commission. This is done to inform the manner of ESRS adoption by the EU. EFRAG decided to launch the public consultation based on the exposure drafts created under the responsibility of the Project Task Force (PTF-ESRS).

A consultation period of 100 days has been launched with the deadline of 8 August 2022 wherein companies can comment on the draft and share relevant information. Incorporating the input and result from the public consultation together with the feedback on the exposure drafts, EFRAG will agree on the final set of draft ESRS to be submitted to the European Commission.

After further evaluations, the finalised version of the ESRS applies the new sustainability standards according to the disclosures made under the EU’s Corporate Sustainability Reporting Directive (CSRD). Bridging finance and sustainability, the ESRS promise to expand mandatory sustainability reporting to European companies as the ongoing drafts are a “journey towards a faithful representation of sustainability performance”.

EFRAG invites comments on all aspects of the draft ESRS and expects feedback no later than 8 August 2022.

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