More than three-quarters of businesses have implemented sustainable sourcing strategies. However, over half of the firms fail to disclose their R&D expenditures or capital investments in certain technologies aimed at enhancing environmental and social outcomes
The CFA Institute, along with CFA Society India and the National Stock Exchange of India (NSE), has launched the initial version of the "Business Responsibility and Sustainability Reporting (BRSR)" data evaluation. This detailed report focuses on the changing ESG scenario within Indian businesses.
The BRSR framework, initiated by SEBI in 2021, requires the top 1,000 listed companies to reveal important ESG factors. In order to evaluate sustainability disclosures, the CFA Institute, the National Stock Exchange, and CFA Society India joined forces to examine BRSR reports of 300 out of the Top 1000 companies for FY23 and the previous fiscal year.
More than three-quarters of businesses have implemented sustainable sourcing strategies. However, over half of the firms fail to disclose their R&D expenditures or capital investments in certain technologies aimed at enhancing environmental and social outcomes.
When it comes to environmental conservation and repair, more than 96 per cent of businesses disclosed their energy usage in FY23, and the data on energy efficiency shows a 13 per cent decrease in energy consumption per unit of revenue compared to FY22. Although 94 per cent disclosed their scope 1 and scope 2 emissions data, fewer than 40 per cent disclosed Scope 3 emissions.
When it comes to reporting on workforce information, it has been an increase in employee turnover from 16 per cent in FY21 to 22 per cent in FY23, with worker turnover staying mostly unchanged. Less than half a percent of the workforce have disabilities, in contrast to the reported 2.2 per cent of India's total population.
Arati Porwal, Country Head at CFA Institute, stated that this study provides an important standard for businesses to assess their performance on ESG criteria and pinpoint areas needing enhancement. Tirthankar Patnaik, Chief Economist at NSE, declared NSE's dedication as promoting a sustainable and responsible business environment.
Rajesh Sehgal, the Chairperson of CFA Society India and a CFA himself, expressed happiness about partnering on this crucial research and stressed the significance of corporate advancements towards sustainability in India.