The Business Responsibility and Sustainability Report (BRSR) Core is a key initiative promoting responsible business practices in India. It emphasizes unique metrics to improve job creation, transparency, and wages, enhancing ESG compliance and sustainability across value chains.
Future trends in BRSR integration show a deeper alignment with value chain management
Smitha Shetty, Regional Director, APAC-Achilles Information, provides insights on the Business Responsibility and Sustainability Report (BRSR) Core. Shetty highlights that BRSR Core supports India’s commitment to responsible business practices and sustainable development by emphasizing metrics tailored to the Indian market. These metrics aim to enhance rural job creation, business transparency, and women’s wages. A significant benefit of BRSR Core is its focus on the value chain, urging large companies to collaborate with their partners to improve sustainability. Despite challenges in managing extensive data collection and collaboration, successful implementation can enhance transparency, boost ESG (environmental, social, and governance) compliance, and positively impact Indian businesses.
ESG integration
As ESG (Environmental, Social, and Governance) reporting gains prominence, Indian businesses face a multi-pronged push for integration, driven by domestic regulations like BRSR Core and rising investor and consumer demand for sustainability. Success in global markets hinges on compliance with international regulatory frameworks such as the EU’s CSRD and North American forced labour legislation. Companies are shifting from basic compliance to a strategic approach, incorporating ESG metrics, and linking executive incentives to performance. ESG assurance schemes aligned with global standards are gaining traction, highlighting the growing importance of transparency and accountability across supply chains.
ESG benefits
Transparent and comprehensive ESG reporting benefits all stakeholders by fostering long-term sustainability and attracting responsible capital. It empowers stakeholders to make informed decisions and identify areas for improvement, leading to a more resilient business ecosystem. Companies can collaborate with suppliers to address sustainability challenges throughout the value chain, contributing to long-term growth. Overall, ESG integration promotes a strategic approach to sustainability, enhancing transparency and accountability across the supply chain community.
Sustainable suppliers
Sustainable supplier relationships are a strategic risk management approach. Companies collaborating on ethical sourcing and safe labour practices can address social risks that might disrupt supply chains, fostering resilience and enhancing performance. This network approach encourages collaboration between large companies and smaller businesses, sharing the cost and responsibility of addressing ESG-related risks. Such partnerships support higher safety and sustainability standards, leading to significant cost savings, reduced procurement cycles, and improved sustainability scores, demonstrating the effectiveness and potential of sustainable supplier management.
BRSR future trends
Looking ahead, future trends in BRSR integration show a deeper alignment with value chain management. Companies must extend sustainability practices to contractors and subcontractors to address global supply chain complexities effectively. The integration of sustainability reporting platforms becomes essential for comprehensive risk management, enabling efficient data collection, analysis, and mitigation. These platforms not only address ESG concerns but also help businesses tackle other operational risks and meet antifragility goals. Simplifying BRSR Core compliance for Indian businesses, these platforms capture detailed supply chain data mandated by SEBI, ensuring effective sustainability demonstration and commitment across industries.
