REPORT OF SEBI - TECHNICAL GROUP ON SOCIAL STOCK …
Transcript of REPORT OF SEBI - TECHNICAL GROUP ON SOCIAL STOCK …
CSR PROVISIONS &REPORT OF SEBI - TECHNICAL GROUP
ON SOCIAL STOCK EXCHANGE
The Institute of Chartered Accountants of India
New Delhi, India
SRSB, ICAI
CSR 101
CSR is mandatory for companies registered under Companies Act, 2013 and covered under the purview of Section 135(1).
ANY OF : Net worth: Rs. 500 crore or Turnover: Rs. 1,000 crore or Net profit: Rs. 5 crore
Applies to Project Office, Companies under IBC
Board should be consisting of three or more directors, out of which at least one director shall be an independent director if CSR > 50 lacs
Net profit will be calculated in the manner as prescribed in Section 198
of the Companies Act, 2013.
Rule 2(1)(d) of the CSR Rules, Corporate Social Responsibility means an activity undertaken by a
company in pursuance of its statutory obligation laid down in Section 135 of the Companies Act, 2013.
SRSB, ICAI
CSR: UNSPENT AMOUNT
Transfer such unspent amount to funds as specified in Schedule VII within a period of six months from the end of FY.
If amount remains unspent pertains to ongoing projects (u/s 135(6)):
a) Company is required to transfer the unspent amount to a special account (Unspent CSR Account) within 30 days of the end of FY.
b) Amount in Unspent CSR Account shall be spent by the Company towards the CSR Policy within a period of three FY's from the end of respective FY
c) On failure to do so, Company shall transfer the same amount to a Fund specified in
Schedule VII, within a period of thirty days from the date of completion of the third FY
If amount remaining unspent pertains to other then ongoing projects (u/s 135(5)):
SRSB, ICAI
SECTION 135 WAS AMENDED W.E.F 22.01.2021 BY INSERTING A NEW
SUB-SECTION (6)
The second proviso to Sub section (5) of section 135 which now states that if theCompany fails to spend the amount prescribed in Section 135(5) and unless theunspent amount relates to any on-going project referred to in sub-section (6), theCompany shall transfer such amount to a Fund specified in Schedule VII, within aperiod of 6 months of the expiry of the financial year.
The applicability of this amendment is prospective and therefore the unspentamount for the financial year 2020-21 onwards shall be transferred to the fundspecified in Schedule VII within six months of the expiry of the said financial year,unless the same pertains to any ongoing project.
However, if the Company has created a provision for unspent CSR obligation forthe financial years 2016-17, 2017-18, 2018-19 and 2019-20, and if such provisionremains outstanding as on 31st March, 2021, such amount should be transferred toseparate bank account or Fund specified in ScheduleVII, as the case may be.
SRSB, ICAI
FUNDS SPECIFIED IN SCHEDULE VII (TO TRANSFER THE UNSPENT AMOUNT / FUNDS)
Swach Bharat Kosh; Clean Ganga Fund;
PM National Relief Fund; PM Cares Fund
Other fund set up CG for socio-eco
Three broad heads include -
SRSB, ICAI
CONSEQUENCES, IN CASE OF THE COMPANY NOT ADHERING TO THE
CSR GUIDELINES AND PROVISIONS
If a Company is in default in complying with the provisions of Section 135 (5) or 135 (6),
Company shall be liable to:
A penalty of twice the amount required to be transferred to the specified funds or theUnspent CSR Account, as the case may be, or one crore rupees, whichever is less, and
Every officer of the Company who is in default shall be liable to:
A penalty of one-tenth of the amount required to be transferred to the specified funds orthe Unspent CSR Account, as the case may be, or two lakh rupees, whichever is less.
Further for Non Disclosure of CSR in the Board's Report under Section 134(3) and Rule 8Company shall be liable to a penalty of Rs. three lakh and every officer of the company whois in default shall be liable to a penalty of Rs. fifty thousand
SRSB, ICAI
SOCIAL STOCK EXCHANGE
Social Stock Exchange (SSE) is a platform which allows
investors to buy shares in social enterprises vetted by an
official exchange. SSE will function as a common platform
where social enterprises can raise funds from the public.
The Union Budget 2019 had proposed setting up of first of its
kind SSE in India.
SEBI’s Working Group (WG) Report on SSE, released on
June 01, 2020 had provided a form and content to the
Hon’ble Finance Minister’s vision. Recommendations
outlined modalities for creating a SSE that will serve as a
platform for fundraising and, also incorporate procedures by
which social impact of NPOs and FPEs will be measured and
reported.
SRSB, ICAI
TECHNICAL GROUP ON SSE – TERMS OF REFERENCE
The Technical Group (TG) was constituted by SEBIon September 21, 2020.
TheTerms of Reference for theTG included –
Developing framework for onboarding NPOs and FPEs onthe SSE including defining for profit socialinvesting/enterprises,
Standardizing reporting and disclosure requirementsrelating to financials, governance, operational performanceand social impact.
Recommending on matters related to scope of work,eligibility criteria and regulation of social auditors, otherintermediaries such as information repositories and theirnecessary SROs
Further evolution and growth of social auditors.
SRSB, ICAI
KEY RECOMMENDATIONS OF THE TECHNICAL GROUP
I. Qualifying Criteria and On boarding of Social Enterprises
II. Building an Enabling Ecosystem
III. Disclosures and Reporting
Three broad heads include -
SRSB, ICAI
I. QUALIFYING CRITERIA AND ON BOARDING OF SE
For Social Enterprises (SE) establish Primacy of Social Impact
Combination of three filters to be used -
(i) 15 broad eligible activities based on Schedule VII of the Companies Act,
2013, SDGs and priority areas identified by Niti Aayog.
(ii) Eligible activities shall target underserved or less privileged population
segments or regions recorded lower performance in development
priorities of national/state governments.
(iii) At least 67% of its activities of SE should be qualifying as eligible activities
to the target population (to be established through one or more of
Revenue, Expenditure, Customer base).
Corporate foundations, political or religious organizations/activities, professional or
trade associations, infrastructure and housing companies (except affordable housing)
will not be permitted on SSE.
SRSB, ICAI
I. QUALIFYING CRITERIA AND ON BOARDING OF SE
- Registration with SSE prior to raising funds
based on registration criteria.
- Registration criteria includes indicators such
as –
o validity of registration certificate
o details of ownership and control
o valid registration under Income Tax, minimum
annual spending in past financial year
o minimum funds raised in past financial year.
• Disclosure of differentiators (vision, target
statement, strategy, governance, management,
operations, finance, compliance, credibility, social
impact, risk) in addition to extant regulations as
mandated by SEBI.
• FPEs shall list their securities on the appropriate
existing boards.
Requirement of Registration for NPOs Requirement for Listing of FPEs
12
PROCESS FLOW FOR
ONBOARDING OF
SOCIAL ENTERPRISE
SRSB, ICAI
INSTRUMENTS AVAILABLE FOR FUND RAISING
NPO
Equity
Zero Coupon
Zero Principal Bonds
Mutual Funds
Development Impact Bonds, Social Impact
FundsFPE
Equity
Debt
Social Venture
Fund
Development Impact Bonds
SRSB, ICAI
RECASTING SOCIAL VENTURE FUNDS
Reducing minimum corpus size from 20cr to 5cr
Reducing minimum subscription from Rs. 1cr to Rs. 2 lakh
Allowing 100% grants, grants out under SVFs
Allowing Corporates to invest CSR funds into SVFs with a 100% grants-in, grant out model
Changing nomenclature of SVF to Social Impact Funds.
TG proposes following changes for recasting social venture funds
SRSB, ICAIII. BUILDING AN ENABLING ECOSYSTEM
Size of the total fund of the corpus be Rs. 100 Crores.
CBF could be housed in NABARD, as an administrative
fund under it.
Fund to be registered under 80G to
- welcome donations
- be eligible to receive CSR donations (which will
require changes to Section 135/ Schedule VII of
Companies Act 2013).
CAPACITY BUILDING FUND
SRSB, ICAI
SOCIAL AUDITORS
• Firms/institutions having expertise in the area of social audit will employ social
auditors.
• Social Auditors include both financial auditors and non-financial auditors who have
qualified certification course conducted by NISM.
• SRO for Social Auditors will function under ICAI as a separate Sustainability
Directorate.
- Social Auditors will be required to be empanelled with SRO.
- Governing body of SRO shall majorly comprise of members from social sector
as well as members of ICAI/ Sustainability Reporting Standards Board.
• SRSB of ICAI shall frame the Social Audit Standard.
• ICAI shall also prescribe a separate Code of Conduct for SAs.
SRSB, ICAI
FUNCTIONS OF SRO
• Registration of SAs on fulfilling the prescribed requirements.
• Laying down criteria/norms for empanelment of SAs, categorization of SA into
various categories on fulfilment of required criteria/norms including but not limited
to number of qualified social auditors in the firm, relevant experience, etc.
• Laying down standards of professional conduct for registered SAs and monitoring
their performance.
• Safeguarding the rights and privileges of SAs who are its members.
• Suspending or canceling the membership of SAs who are its members, on grounds
set out in its bye-laws.
• Publishing information about its functions, list of its members, performance of its
members and such other information as may be specified by regulations.
SRSB, ICAI
IR are also a very important category of
participants in the SSE ecosystem. IRs currently
function as aggregator of information on NGOs,
and provide a searchable database in a comparable
form.
IR, based on how their role shapes up, at a later
date, can be subjected to appropriate checks and
balances in the form of regulations as may be
deemed appropriate.
SRSB, ICAI
III. DISCLOSURES AND REPORTING
Need of Standardization of Disclosures and ReportingRequirements - To provide balanced and reasonablerepresentation of performance & progress of registered SE
Disclosures on General, Governance and Financial Aspects –Separate requirements for NPOs and FPEs as difference in legal form and accounting practices
Reporting on Social Impact - Annual Impact Report to capture qualitative and quantitative aspects of social impact generated by entity, or by project/ solution that security is meant to fund
SRSB, ICAI
DISCLOSURES ON GENERAL, GOVERNANCE AND
FINANCIAL ASPECTS
- Whose face value of post issue paid up capital shall be more than Rs. 25 crores -
Comply with Indian Accounting Standards (Ind AS), as notified under Section 133 of
the Companies Act, 2013.
- Others (other than those who have post issue paid up capital > Rs.25 crores and
those with post issue paid up capital < Rs. 25 crores but complying with Ind AS) -
Comply with Accounting Standards issued by the ICAI.
SEs (both NPOs and FPEs) –
SRSB, ICAI
DISCLOSURES ON GENERAL, GOVERNANCE AND
FINANCIAL ASPECTS
- ICAI shall update its “Technical Guide
on Accounting for NPOs” issued earlier
in 2009.
- ICAI shall mandate that AS compliance
be verified by all of its members while
giving assurance on financial statements
of all NPOs.
- Reporting of any material event within
07 days to the exchange in which
registered/listed.
FPE listing equity/debt shall in addition to
social impart reporting requirement comply
with the disclosure requirements as per the
applicable segment such as main board,
SME, IGP, etc.
For NPOs registered with SSE For FPEs
SRSB, ICAI
DISCLOSURES ON SOCIAL IMPACT
• Entities on SSE shall disclose Social Impact
on annual basis.
• The report shall be called
Annual Impact Report (AIR)
covering aspects such as –
• Strategic Intent and Planning
• Approach
• Impact Score Card
VALUE VS. VALUES
Value
Governance Issues
Values
Environment
Values
Social
• Poor management practices,
• Board compositions,
• Anti-bribery and corruption
policy,
• Participation of shareholders.
• Reputation of organization.
• Labour conflict,
• Social impact of certain
products/activities.
• Scarcity of natural resources.
• Impact on climate change.
• Changing demographics
GLOBAL
INITIATIVES
IFRS Foundation
IIRC/GRI/SASB
EU Mandate
UK Mandate
New Zealand Mandate
ID Category Metric Calculation Guidance
E1 Environmental GHG Emissions E1.1) Total amount, in CO2 equivalents, for Scope 1 (if
applicable)
E1.2) Total amount, in CO2 equivalents, for Scope 2 (if
applicable)
E1.3) Total amount, in CO2 equivalents, for Scope 3 (if
applicable)
Please use the WRI/WBCSD GHG protocol.
Please use the WRI/WBCSD GHG protocol.
Please use the WRI/WBCSD GHG protocol.
E2 Environmental Emissions Intensity E2.1) Total GHG emissions per output scaling factor
E2.2) Total non-GHG emissions per output scaling
factor
Scaling factors set by reporting company.
Examples include: Revenues, sales, production units.
E3 Environmental Energy Usage E3.1) Total amount of energy directly consumed
E3.2) Total amount of energy indirectly consumed
Reported in MWh or GJ.
Reported in MWh or GJ.
E4 Environmental Energy Intensity Total direct energy usage per output scaling factor Scaling factors set by reporting company.
Examples include: Physical space, FTEs, revenues.
E5 Environmental Energy Mix Percentage: Energy usage by generation type Examples include: Renewables, hydro, coal, oil, natural
gas.
E6 Environmental Water Usage E6.1) Total amount of water consumed
E6.2) Total amount of water reclaimed
Reported in gallons or square meters (m3).
Reported in gallons or square meters (m3).
E7 Environmental Environmental Operations E7.1) Does your company follow a formal
Environmental Policy? Yes, No
E7.2) Does your company follow specific waste, water,
energy, and/or recycling polices? Yes/No
E7.3) Does your company use a recognized energy
management system? Yes/No
Cite public content, if available.
Cite public content, if available.
ISO 50001, for example.
E8 Environmental Environmental Oversight Does your Board/Management Team oversee and/or
manage climate-related risks? Yes/No
Cite public content, if available.
E9 Environmental Environmental Oversight Does your Board/Management Team oversee and/or
manage other sustainability issues? Yes/No
Cite public content, if available.
E10 Environmental Climate Risk Mitigation Total amount invested, annually, in climate-related
infrastructure, resilience, and product development?
Reported in Rs.
World Federation of Exchanges launched Metrics for ESG disclosure
World Federation of Exchanges launched Metrics for ESG disclosure
S1 Social CEO Pay Ratio S1.1) Ratio: CEO total compensation to median FTE
total compensation
S1.2) Does your company report this metric in
regulatory filings? Yes/No
Use total compensation, including all bonus and
incentives.
For example: Dodd-Frank regulations (US)
S2 Social Gender Pay Ratio Ratio: Median male compensation to median female
compensation
Reported for FTEs only.
Use total compensation, including all bonus and incentives.
S3 Social Employee Turnover 3.1) Percentage: Year-over-year change for full-time
employees
3.2) Percentage: Year-over-year change for part-time
employees
3.3) Percentage: Year-over-year change for contractors
and/or consultants
S4 Social Gender Diversity 4.1) Percentage: Total enterprise headcount held by men
and women
4.2) Percentage: Entry- and mid-level positions held by men
and women
4.3) Percentage: Senior- and executive-level positions held
by men and women
S5 Social Temporary Worker Ratio 5.1) Percentage: Total enterprise headcount held by part-
time employees
5.2) Percentage: Total enterprise headcount held by
contractors and/or consultants
S6 Social Non-Discrimination Does your company follow a sexual harassment and/or non-
discrimination policy? Yes/No
Cite public content, if available.
S7 Social Injury Rate Percentage: Frequency of injury events relative to total
workforce time
Reference ILO & UNDHR standards, if possible.
S8 Social Global Health & Safety Does your company follow an occupational health and/or
global health & safety policy? Yes/No
Cite public content, if available.
S9 Social Child & Forced Labor 9.1) Does your company follow a child and/or forced labor
policy? Yes/No
9.2) If yes, does your child and/or forced labor policy also
cover suppliers and vendors? Yes/No
Cite public content, if available.
Reference ILO & UNDHR standards, if possible.
S10 Social Human Rights 10.1) Does your company follow a human rights policy?
Yes/No
10.2) If yes, does your human rights policy also cover
suppliers and vendors? Yes/No
Cite public content, if available.
Reference ILO & UNDHR standards, if possible.
World Federation of Exchanges launched Metrics for ESG disclosure
G1 Governance Board Diversity G1.1) Percentage: Total board seats occupied by
men and women
G1.2) Percentage: Committee chairs occupied by
men and women
G2 Governance Board Independence G2.1) Does company prohibit CEO from serving as board
chair? Yes/No
G2.2) Percentage: Total board seats occupied by
independents
Cite public content, if available.
G3 Governance Incentivized Pay Are executives formally incentivized to perform on
sustainability? Yes/No
Cite public content, if available.
G4 Governance Collective Bargaining Percentage: Total enterprise headcount covered by
collective bargaining agreement(s)
G5 Governance Supplier Code of Conduct G5.1) Are your vendors or suppliers required to follow a
Code of Conduct? Yes/ No
G5.2) If yes, what percentage of your suppliers have
formally certified their compliance with the code?
Cite public content, if available.
"Percentage" can be defined by number or expenditure.
G6 Governance Ethics & Anti-Corruption G6.1) Does your company follow an Ethics and/or Anti-
Corruption policy? Yes/No
G6.2) If yes, what percentage of your workforce has
formally certified its compliance with the policy?
Cite public content, if available.
"Percentage" is defined by total FTE headcount.
G7 Governance Data Privacy G7.1) Does your company follow a Data Privacy policy?
Yes/No
G7.2) Has your company taken steps to comply with GDPR
rules? Yes/No
Cite public content, if available.
General Data Protection Regulation (GDPR).
G8 Governance Sustainability Reporting G8.1) Does your company publish a sustainability report?
Yes/No
G8.2) Is sustainability data included in your regulatory
filings? Yes/No
Cite public content, if available.
Cite public content, if available.
G9 Governance Disclosure Practices G9.1) Does your company provide sustainability data to
sustainability reporting frameworks? Yes/No
G9.2) Does your company focus on specific UN Sustainable
Development Goals (SDGs)? Yes/No
G9.3) Does your company set targets and report progress
on the UN SDGs? Yes/No
If yes, cite frameworks used.
Cite public content, if available.
Cite public content, if available.
G10 Governance External Assurance Are your sustainability disclosures assured or validated by a
third party? Yes/No
Cite third party assurance partner.
GRI(GLOBAL REPORTING
INITIATIVE)
STANDARDS
Universal Standards
GRI 101: Foundation 2016
GRI 102: General Disclosures 2016 GRI 103: Management Approach 2016
Specific Standards
GRI 200: Economic
GRI 201: Economic Performance 2016
GRI 202: Market Presence 2016
GRI 203: Indirect Economic Impacts 2016
GRI 204: Procurement Practices 2016
GRI 205: Anti-corruption 2016
GRI 206: Anti-competitive Behavior 2016
GRI 207: Tax 2019
GRI 300: Environmental
GRI 301: Materials 2016
GRI 302: Energy 2016
GRI 303: Water and Effluents 2018
GRI 304: Biodiversity 2016
GRI 305: Emissions 2016
GRI 306: Waste 2020
GRI 307: Environmental Compliance 2016
GRI 308: Supplier Environmental Assessment 2016
• GRI 400: Social
GRI 401: Employment 2016GRI 402: Labor/Management Relations 2016GRI 403: Occupational Health and Safety 2018
GRI 404: Training and Education 2016GRI 405: Diversity and Equal Opportunity 2016
GRI 406: Non-discrimination 2016GRI 407: Freedom of Association and
Collective Bargaining 2016
GRI 408: Child Labor 2016GRI 409: Forced or Compulsory Labor 2016GRI 410: Security Practices 2016GRI 411: Rights of Indigenous Peoples 2016GRI 412: Human Rights Assessment 2016GRI 413: Local Communities 2016GRI 414: Supplier Social Assessment 2016GRI 415: Public Policy 2016GRI 416: Customer Health and Safety 2016GRI 417: Marketing and Labeling 2016GRI 418: Customer Privacy 2016GRI 419: Socioeconomic Compliance 2016
Initiative by Stock Exchanges (Globally)
58 of the 107 stock exchanges have published ESG reporting guidance for their listed companies.
Stock exchanges made it compulsory for Listed companies to report either on GRI or norms developed by other
forums/task force based on
importance of different stakeholders,
which ESG factors were selected and how
Singapore Exchange (2011) Guide to Sustainability Reporting for Listed Companies,
Malaysia (2010) Powering Business Sustainability - A Guide for Directors
Budapest Stock Exchange published its first ESG Reporting Guide (2021)for Issuers.
Panama Stock Exchange (BVP) presented the “Guide (2021) for Reporting and Voluntary Disclosure of
Environmental, Social and Corporate Governance Factors (ASG)”
UN Global Compact (2015) Board Programme: Unlocking the Value of Corporate Sustainability.
2012, the Securities and Exchange Board of India (SEBI) issued a circular that made it mandatory for the largest 100
listed companies to publish an annual business responsibility report.
SUSTAINABLE FUNDS/BONDS – ESG MUTUAL FUNDS
Sustainable funds are those that use environmental, social, and corporate governance (ESG) criteria to evaluate investments
or assess their societal impact.
They may pursue a sustainability-related theme or explicitly aim to create measurable social impact.
Sustainable funds invest with two lenses, they analyze company performance with regard to ESG criteria (environmental, social,
and governance) alongside traditional factors such as valuations and earnings growth.
ESG bonds are debt instruments that encourage investments based on the issuer addressing certain ESG criteria.
Climate change concerns in recent years have pushed both investors and companies to incorporate ESG into their corporate
operations or investment portfolios.
On the same line the first ESG mutual fund was launched by the State Bank of India i.e., SBI Magnum Equity ESG Fund.
Globally, in 2020 ESG funds getting unparalleled popularity for such strategies. Investors have poured money into these funds as
concern for sustainability, social good, and responsible governance spreads.
World Bank launched equity-linked index bonds that link returns to the performance of companies advancing global
development priorities set out in the Sustainable Development Goals.
According to a report by Morningstar, ESG funds took in $51bn of net inflows last year, double the total for 2019 and almost 10
times more than in 2018. Even the Investors are getting good return on their investment in various Funds
CHALLENGES IN ESG IMPLEMENTATION
Non availability of any methodology for assigning the monetary value to a particular ESG issues like Air
Pollution into Quantitative model (more subjectivity).
No Standards for ESG disclosure and disclosures remain unverified.
Organizations always feel that ESG issues are the responsibility of Regulators and Governments.
ESG issues influence the Financial Position in long run whereas investors are more concerned for short term
gains.
Data related to ESG is not available in quantitative terms. Integration of ESG info with financial statement in
absence of standard is a challenge.
There was no theory which can prove link between the ESG and Financial performance.
No Regulatory requirement across the board for disclosure of ESG.
Capability of Finance team to account the ESG related issues.
No uniformity of ESG across the nature of Organizations/Regions.
UNIFORMITY
A
CHALLENGE
WAY
FORWARD
Promote Promote Your Performance.
Define Define Success - Evaluate the Progress on parameters.
Build Build a Sustainability Team fully equipped to understand the ESG framework.
Create Create a Budget/Timelines to implement strategies.
Set Set Overall Goals for each of ESG Factor, Divide them into short term and long term.
Identify Identify the ESG factors related to nature of Organisation. Determine the positive value of factor. Consider Stakeholders for various factors.
Business Responsibility and sustainable Reporting by
Listed Companies
BRSR
INTRODUCED
BY SECURITY
EXCHANGE
BOARD OF
INDIA (SEBI)
FOR ESG
REPORTING
Seeks disclosure by Listed Companies their performance against the nine (9) Principle of National Guidelines on Responsible Business conduct (NGRBC)
Each Principle is divided into “Essential” and “Leadership” Indicators
Reporting on “Essential indicators” is mandatory and “Leadership indicators” is voluntary in nature
Aim is to develop comparability to help investor for informed decisions
Applicable for top 1000 listed companies (Based on Market Capitalization) from Financial Year 2022-23 (Mandatory). For 2021-22 its voluntary.
Reporting made on international standards (GRI)/Annual report can be shared as cross reference.
Need to disclose the disclosure are for stand alone entity or on consolidated basis
Issued on 10th May 2021
SECTION A:
GENERAL
DISCLOSURES
Details of the listed entity
1. Corporate Identity Number (CIN) of the Listed Entity
2. Name of the Listed Entity
3. Year of incorporation
4. Registered office address
5. Corporate address
6. E-mail
7. Telephone
8. Website
9. Financial year for which reporting is being done
10. Name of the Stock Exchange(s) where shares are listed
11. Paid-up Capital
12. Name and contact details (telephone, email address) of the person who may be contacted in case of any queries on the BRSR report
13. Reporting boundary - Are the disclosures under this report made on a standalone basis (i.e. only for the entity) or on a consolidated basis (i.e. for the entity and all the entities which form a part of its consolidated financial statements, taken together).
SECTION B : 9
PRINCIPLES
OF NGRBC
Business should conduct and govern themselves with integrity, and in a manner that is ethical, transparent and accountable
Businesses should provide goods and services in a manner that is sustainable and safe
Businesses should respect and promote the well-being of all employees, including those in their value chains
Businesses should respect the interests of and be responsive to all its stakeholders
Businesses should respect and promote human rights
Businesses should respect and make efforts to protect and restore the environment
Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent
Businesses should promote inclusive growth and equitable development
Businesses should engage with and provide value to their consumers in a responsible manner
SDGs Mapped against ESG Reporting (NGRBC)
WAY FORWARD -
ORGANIZATION
NEED TO
ORGANIZE
AWARENESS
PROGRAM ON
All 9 Principles for KMPs, Board Members and key value chain
• Human Right Issues
• Health and Safety Measure
• Skill Upgradation
For employees on
For public on safe and responsible usage of product/services
WAY FORWARD -
DEVELOP
POLICIES/PROCED
URE ON
Policy for Anti Bribery
Procedure for Sustainable sourcing
Procedure for reclaim product for re-cycle/dispose off
Equal opportunity policy
Procedure for formation Union of employee
Committee for address human right issue and its impact on business
Enable process to include human right issue in agreement/contracts
Mechanism for zero liquid discharge
Develop Waste Management Practice
Preferential procurement policy
Conflict of Interest
Occupational health and safety management system
Framework/policy on cyber security and data privacy
WAY
FORWARD -
MECHANISM
TO OBTAIN
Grievances of Employee/worker for work place environment
Data related to grievance for working conditions, health and safety
Grievances of community on Social impact
Emission of Air/Gas/Water Use/Electricity use/Waste
WAY
FORWARD -
NEED TO
DISCLOSE
Expenses incurred on R&D related to impact of ESG for product life cycle and how to improve
Whether Extended Producer Responsibility is applicable
Percentage of re-cycled or re-used input material used in production
Safety related incidents
Whether any life insurance /compensatory package scheme is there
Transition assistance program for retired/terminated employee
Entry access/working conditions to differently-abled employee and visitors
Environmental impact assessment of projects
Social Impact Assessment of Projects
Any rehabilitation/re-settlement undertaken because of project
Compliance of environment and related Acts
WAY
FORWARD -
NEED TO
DISCLOSE
Emission/consumption/Re-use/Re-cycle/disposal of
Electricity including fuel and others
Water – Surface, ground, sea, third party
Air emissions
Green house gas emissions
Plastic and other waste
Details of Public policy advocated
Sourcing from MSMEs, Neighbouring/within district
CSR project in aspirational districts
Benefit derived from IPR based on traditional knowledge
Environmental and social parameters of product, usage
and disposal
DEFINITIONS
The term “Employee” is defined under Sec 2(l) of the Industrial Relations Code, 2020
The term “Worker” is defined under Sec 2(zr) of the Industrial Relations Code, 2020 and means any
person (except an apprentice as defined under clause (aa) of section 2 of the Apprentices Act, 1961)
The term “permanent employee or “permanent worker” refers to an employee or worker,
employed for full-time or part- time work, for an indeterminate period. The term “other than permanent
employee” or “other than permanent worker” refers to employees or workers who are employed for a
fixed term that ends when a specific time period expires, or on completion of a specific task or an event
such as the end of a project or return of a replaced employee. “Other than permanent” employees or
workers could be employed directly by the entity or through third party contractors.
Key Management Personnel as defined under Sec 2(51) of the Companies Act 2013, in relation to a
company, means—
(i) the Chief Executive Officer or the managing director or the manager;
(ii) the company secretary;
(iii) the whole-time director;
(iv) the Chief Financial Officer; and
(v) such other officer as may be prescribed
The entity shall calculate the turnover rate for a financial year, for a particular category, based on
the following formula:
(No. of persons who have left the employment of the entity in the FY *100) / Average no. of
persons employed in the category
As defined under Sec 2(10) of the Companies Act 2013, "associate company", in relation to another
company, means a company in which that other company has a significant influence, but which is not a
subsidiary company of the company having such influence and includes a joint venture company.
DEFINITIONS
The term ‘green-house gas’ covers the following gases:
Carbon dioxide (CO2)
Methane (CH4)
Nitrous oxide (N2O)
Hydrofluorocarbons (HFCs)
Perfluorocarbons (PFCs)
Sulphur hexafluoride (SF6)
Nitrogen trifluoride (NF3)
Relevant Laws applicable for
9 Principles of NGRBC
Relevant Laws applicable for 9 Principles of
NGRBC
CA. ANIKET SUNIL TALATI
Central Council Member, ICAI
Thank You
“Do what today others won’t, so tomorrow, you can do what others can’t”.