Government of India panel formed by the Ministry of Corporate Affairs made its proposals on Business Responsibility Report. In 2018, The Centre panel was formed, in efforts to have a single source for all the non-financial disclosures made by the corporates.
The panel comprises of representatives of Ministry of Corporate Affairs, Securities and Exchange Board of India, etc.
The panel proposed that the Business Responsibility Report shall be called as Business Responsibility and Sustainability Report. This is to help in reflecting better intent and scope of the report.
The GoI panel has recommended the following
- The reporting shall be done by top one thousand companies in terms of their market capitalization. Also, it shall be done as prescribed by market regulator.
- The report requirement shall be extended by MCA to unlisted companies. A specific threshold of turnover shall be fixed to these companies
- 2 formats have been suggested. One is called the “Lite Version” and the other is called “comprehensive format”.
- The report shall be integrated with MCA 21 portal. The portal is used to submit requisite filings.
- The information captured by the report shall be used to develop Business Responsibility Sustainability Index.
The panel was formed under the National Guidelines on Responsible Business Conduct.
The Ministry of Corporate Affairs in 2011 released the National Voluntary Guidelines on Social and Environmental and Economic Responsibilities of Business.
The process to revise these guidelines began in 2018 to align them with Sustainable Development Goals and United Nations Guiding Principles on Business and Human Rights. The NGRBC was released in 2019.
The National Guidelines on Responsible Business Conduct was designed to assist businesses. The guidelines were framed based on the following
- UN Guiding Principles on Business and Human Rights
- United Nations Sustainable Development Goals
- Paris Agreement on Climate Change
- Core Conventions on Child Labour by the International Labour Organization (ILO)
- Annual Business Responsibility Report
- Companies Act, 2013.
Business Responsibility Report of two format Business Responsibility Report of two format