Business Responsibility and Sustainability Reporting: Aligning ESG framework to Trace Sustainable Development Goals

The increasing global focus on Sustainability and Climate Change
has prompted businesses to embrace their responsibility towards
Environmental, Social, and Governance (ESG) factors. As part of the
environmental and social commitments, corporates are voluntarily
adopting sustainability reporting to communicate their efforts
in aligning with the Sustainable Development Goals (SDGs).
Environmental, Social, and Governance factors have become
increasingly important in investment and financial decision making,
resulting in the emergence of ESG Rating Providers (ERPs) that assess
and rate companies based on their ESG performance. However, the
lack of standardization, transparency, and accountability in the ERP
industry raises concerns about the reliability and credibility of ESG
ratings and scores. Business Responsibility and Sustainable Reporting
(BRSR) has emerged as a vital tool for promoting transparency,
accountability, and sustainability in corporate practices. This paper
provides a conceptual framework by analysing the significance of
BRSR in integrating ESG frameworks into sustainability reporting to
effectively trace progress of the economy towards the attainment of
SDGs. It examines the challenges faced by businesses in aligning their
ESG practices with the SDGs and emphasizes the mandatory reporting
requirement of BRSR introduced by SEBI that enables transparent and
measurable impact assessment. Besides, it provides valuable insights
for the corporates, investors, policymakers, and other stakeholders
interested in advancing corporate sustainability practices, promoting
responsible business conduct and thereby contribute towards
accomplishing SDGs. In addition, it intends to encourage the Mid
cap and Small-cap Corporates to adopt voluntary ESG Reporting to
reinforce long-term sustainability along with financial growth.