Importance of ESG Disclosures
As the current financial year progresses, companies are finding themselves at a critical juncture with the introduction of Business Responsibility and Sustainability Reporting (BRSR) as a mandatory requirement. The significance of Environmental, Social, and Governance (ESG) disclosures has grown exponentially, with stakeholders such as investors and ESG rating providers relying on the information shared in the BRSR.
In this landscape, assurance plays a pivotal role in enhancing the credibility of these disclosures and instilling investor confidence. The Securities and Exchange Board of India (SEBI) has made BRSR reporting mandatory for the top 1,000 companies in FY’23, with no mandatory requirement for assurance. However, starting from FY’24, reasonable assurance in BRSR will be mandatory for the top 250 companies, top 500 firms from FY’25, and top 1,000 firms from FY’26.
The Significance of ESG Disclosures
ESG disclosures provide companies with a platform to transparently communicate their environmental, social, and governance initiatives, performance, and future strategies. These disclosures go beyond traditional financial reports, shedding light on a company’s sustainable practices, social impact, and governance structures. By making such information publicly available, businesses can demonstrate their commitment to responsible and ethical practices, attracting investors who prioritize sustainability and promoting brand reputation.
How ESG Disclosures Can Benefit Your Business
Embracing ESG disclosures offers a multitude of benefits to businesses:
1. Proactively Identifying and Mitigating ESG Risks
ESG disclosures enable organizations to proactively identify and mitigate environmental, social, and governance risks. By understanding and addressing these risks, companies can ensure long-term resilience and continuity.
2. Gaining a Competitive Advantage
Transparent ESG disclosures provide a competitive advantage by differentiating companies that embrace sustainable practices and align with stakeholder expectations. This differentiation can lead to increased customer loyalty and enhanced brand reputation.
3. Access to Capital
ESG disclosures facilitate access to capital, as investors increasingly seek to invest in socially responsible enterprises. By considering environmental and social factors alongside financial performance, businesses can make informed decisions, foster innovation, and gain a deeper understanding of their impact on the planet and society.
Navigating ESG Disclosures and Assurance with PlanetWise
In this era of heightened scrutiny and evolving regulatory requirements, companies require a partner to navigate ESG disclosures and assurance. PlanetWise offers comprehensive services to assist your business in enhancing the quality and reliability of your ESG disclosures.
By embracing ESG reporting and seeking assurance support from PlanetWise, your organization can unlock sustainable success, gain a competitive edge, and contribute to a better future for both your stakeholders and the planet!
Reach out to us to learn more!