More than three-quarters of the businesses in India have implemented sustainable sourcing strategies, with 230 out of 300 reporting established procedures for it, according to The Current State of BRSR at Corporate India, a report released by CFA Institute, CFA Society India and National Stock Exchange.
The report also reveals that more than half the companies don’t report research and development investments and 40 per cent of them don't report capital expenditure in technologies which improve the environmental and social impacts. However, the number of companies reporting R&D investments has increased from 148 in FY23 from 141 in FY22, and the number of those reporting capital expenditure has increased to 180 in FY23 from 169 in FY22.
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"This research offers a vital benchmark for companies to evaluate their progress on ESG benchmarks and pinpoint areas for improvement," said Arati Porwal, country head, CFA Institute.
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, according to the report. Moreover, although 94 per cent disclosed their scope 1 and scope 2 emissions data, fewer than 40 per cent disclosed Scope 3 emissions.
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The report evaluates sustainability disclosures of 300 out of the top 1000 companies for FY23 and the previous fiscal year.
The Business Responsibility and Sustainability Reporting (BRSR) framework, initiated by Securities and Exchange Board of India (Sebi) in 2021, requires the top 1,000 listed companies to reveal important ESG factors. Earlier this year, a Sebi committee had proposed several changes to the BRSR framework which included ESG disclosures for the top 250 listed entities’ value chains, the introduction of green credits and the redefinition of ‘value chain’ partners for ESG disclosures.
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