BusinessWire India
Mumbai (Maharashtra)/ New Delhi [India], June 20: Chrysalis Services, a consultancy dedicated to changing the landscape of the Indian social sector and bridging the gap between the privileged and underprivileged, aims to address the pressing need for Environmental Sustainability Governance (ESG) in the corporate landscape and assist companies in integrating sustainable practices into their operations.
ESG encompasses the three pillars - Environmental, Social, and Governance, that measure a company's sustainability and ethical impact. Environmental factors focus on a company's impact on the environment and natural resources. Social factors evaluate the company's relationship with its employees, customers, communities, and other stakeholders. Governance factors assess the company's leadership, accountability, and transparency in decision-making processes.
ESG has emerged as a critical factor in the decision-making process for investors, regulators, and stakeholders. Recognizing its significance, the Securities and Exchange Board of India (SEBI) has mandated Business Responsibility and Sustainability Reporting (BRSR) for the top 1000 companies from FY 2022-23. This reporting requirement has been extended to supply chain disclosures for the top 250 companies from FY 2024-25. Additionally, independent assurance on Business Responsibility Services Reporting (BRSR) Core is now mandatory for the top 250 companies from FY 2023-24.
In addition to SEBI's mandates, the Reserve Bank of India (RBI) has also taken steps to introduce sustainable finance through its regulated entities. These initiatives highlight the growing importance of ESG considerations in the corporate ecosystem and underscore the need for expert guidance in navigating this evolving landscape.
Embracing ESG practices brings numerous benefits for companies. Firstly, it enhances their reputation and brand value, as stakeholders increasingly value businesses committed to sustainable and responsible practices. Secondly, it reduces operational risks by proactively managing environmental and social issues, such as resource scarcity and labour rights. Thirdly, it attracts investors seeking to align their portfolios with sustainable investments. Studies have shown that companies with strong ESG performance tend to outperform their peers in terms of financial returns and resilience.
While the implementation of ESG reporting mandates brings about numerous benefits, companies often face challenges in meeting these requirements. The complexities of data collection, measurement, and reporting pose significant hurdles, especially for organisations that lack experience or internal capabilities. Moreover, ensuring the accuracy, reliability, and credibility of reported information requires specialised expertise and independent assurance.
"Environmental sustainability and responsible governance are no longer optional for corporates - they have become a mandate. Organisations are grappling with the complexities of sustainability standards and the need to provide comprehensive data. Meeting sustainability requirements involves implementing environmentally friendly practices, reducing carbon footprint, and adopting ethical business practices," shares Sudhir Rao, Director, Chrysalis Services. "However, these initiatives often require significant investments and changes in operational processes, which can be challenging for companies," he adds.
Chrysalis Services has taken an initiative to guide and support companies in meeting these ESG reporting obligations. It will help corporates navigate the complexities of ESG reporting, ensuring accurate and transparent disclosures.
For this, Chrysalis Services is collaborating with Ramanlal G. Shah & Co., an esteemed firm. This partnership will leverage the expertise and experience of both organisations to facilitate the integration of sustainable practices into businesses, aligning them with the evolving regulatory landscape.
Vivek Shah from Ramanlal G. Shah & Co. says, "As part of our collaborative efforts, we will provide guidance on ESG strategies, data collection, measurement, reporting, and supply chain disclosures. Moreover, we will facilitate independent assurance on BRSR Core, ensuring the credibility and reliability of reported information. This partnership will enable companies to enhance their ESG performance, gain competitive advantage, and contribute to sustainable development."
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