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A negative sustainability report does not mean non-compliance but it is in the interest of the company that its board of directors show efforts for improvements year on year for the users of its annual report to decide on further investments to be made or to stay put. The contents of non-financial report section are being increasingly used by companies to exhibit and showcase their capabilities and commitments to do their business in a sustainable manner, all of which are much bigger selling point than their own financial performance when it comes to investment decisions with many priority funds and specific funds in the investment space. The level of importance that the non-financial reporting has acquired in a short span of time in India is tremendous and with Indian economy embracing the global market, with more importance acquired on ESG matters the quality of the data covered and their following is only going to be more important in the coming years. Currently these requirements and initiatives are only in a take off stage and an early working towards this initiative will make the company more complaint and will give an edge in the industry. A company which follows the non-financial metrics religiously is perceived as a better managed company by the investors and stakeholders.

The important aspects of these reports are:

• Sustainable Development is a way to achieve the development goals of an enterprise by meeting the needs of the present without compromising the ability of future generation to meet their needs.
• Besides natural resources, we also need social and economic resource to make the growth sustainable. So, the topic of sustainability covers ESG – Environment, Social and Governance. The simple thought behind this is a company that uses all its resources resourcefully will manage the shareholder investment better besides valuing all stakeholder’s interest.
• BRSR is guided by nine guidance principle of NGRBC (National Guidance on Responsible Business Conduct) which covers the 17 SDG (Sustainable Development Goals) of UN.
• BRSR has a standardised format for reporting the non-financial data for Indian listed entities and its allied ones. This in line with the much wider prevailing global standards like GRI (Global Reporting Initiative) and IIRC (International Integrated Reporting Council) but is smaller on requirement. Its reporting prompts the entities to publish the Leadership indicators which make the entities stand out.

Companies should make use of the non-financial reports published as part of annual accounts to exhibit their corporate guidance and sustainable business practices to the stakeholders, investors and other interest group. The contents of this report are not statutorily certified by the consultants. The non-financial reports for now are only a separate report from the board of directors and CFO to the users of the annual accounts. CAs who are trained can deep dive into the contents of these reports, can get associated with the board for preparation and preparedness for improvements, do check and balance on the contents and place their comments as specialist. As consultancy services, besides CAs, the requirements of BRSR has opened up opportunities to other disciplines like the social auditors, environmental specialist, energy auditors etc. but with the background of finance, CAs are better equipped to guide and co-work with the board of directors.

As the non-financial reporting and its ownership are with the board of directors and CFOs of the company, they need to take all efforts to improve the sustainability standard and its following within the company which calls for the need to make special efforts by the specialist through their co-working and make improvements in as many topics as 335 listed initiatives covered by the BRSR reporting. A joint working can bring about the desired improvements on environmental, social and governance topic to the degree of improvement, the very objective of SEBI making it mandatory.

As a step by step process, the Sustainability Reporting Maturity Model (SRMM) testing as recommended by ICAI can be prepared jointly with the management / board, prepare BRSR report by having data compilation in the standard format across the units of the entities, work with the management / board to bring about changes in the status of the company from the formative stage – upto 25% BRSR score to emerging stage – 25 to 50%, to established stage – 50 to 75% and then finally into the Leading by example - > 75% BRSR score.

Indeed a vast opportunity for co-working to make the organization more sustainable.

Happy to update that I have started my association with 4Seer Technologies as its Principal ESG Consultant. My journey in corporate finance, legal acquisitions, compliance, and strategic management has equipped me with a profound understanding of international ESG and sustainability frameworks, including GRI, BRSR, ESRS, and IFRS standards. 4Seer Technologies have developed an extremely good tool for ESG reporting under multiple reporting standards including the most prominent and popular ESG standard – GRI. The tool helps clients to extract ESG data from available data within the company including social platforms. I am confident that the product developed by 4Seer team will help all its users to report their sustainability data precisely and to improve their sustainability standards coupled with my service offerings.

At 4Seer, I lead the ESG practice, helping clients to navigate the complexities of ESG reporting and sustainability. I have successfully prepared different entities for ESG reporting, particularly adhering to GRI standards for Essilor International during my tenure with them. My extensive experience in non-financial reporting, compliance and exposure on governance requirement will ensure that the global operations of the clients will maintain a high sustainability standard. Throughout my career, I have raised capital, executed M&A deals – both buying and selling, and has led turnaround plans for various businesses. As a board member, I provide strategic advice and compliance oversight, driving substantial growth and strategic direction. My commitment to sustainable growth and governance, combined with my strategic business acumen, positions me as a valuable asset in the field of ESG and finance alongside the product developed by 4Seer.

At 4Seer Technologies, I am dedicated to drive sustainable business practices and reporting excellence, helping our clients achieve their sustainability objectives effectively