SEBI Advisory Committee on ESG-related Matters

The Securities and Exchange Board of India (SEBI) recently set up an advisory committee for advising on Environment, Social, and Governance (ESG) related matters in India’s securities market.

Who will be the head of the advisory committee?

The advisory committee on ESG-related matters will be headed by Navneet Munot, CEO of HDFC Mutual Fund.

How many members are there on the committee?

The advisory committee has 19 expert members.

Who will be the secretariat to the committee?

4 Securities and Exchange Board of India (SEBI) officials will be secretariat to the advisory committee.

What are the terms of reference (TOR) of the committee?

  • Bringing enhancements in the Business Responsibility and Sustainability Report (BRSR), Environment, Social and Governance (ESG) ratings, and Environment, Social and Governance (ESG) investing.
  • Regarding Business Responsibility and Sustainability Report (BRSR), the advisory committee is responsible for reviewing essential indicators and leadership indicators.

What is the purpose of the Business Responsibility and Sustainability Report (BRSR)?

  • From an investor’s perspective, it will enable them to make informed & evidence-based decisions wrt how their investments have an impact on the environment, economy & society.
  • From an organization perspective, BSBR will encourage them to look beyond financial parameters alone and incorporate sustainability reporting.
  • By demonstrating their sustainable performance, organizations can create long-term value for their stakeholders. If the ESG report is clear, more investments can be attracted by the company.

What disclosures are made in Business Responsibility and Sustainability Report (BRSR)?

  • Environmental disclosures include resource efficiency, greenhouse (GHG) emissions, transitioning to a circular economy, waste management practices, biodiversity, etc.
  • Social disclosures include Gender and social diversity, welfare benefits, occupational health, training, etc.

What is ESG investing?

Under ESG Investing, investments are made considering their impact on the environment, society, and human wellbeing.

Why ESG investing is becoming popular?

The popularity of ESG investing is rising because investors are increasingly becoming aware that the long-term value of their investments will depend on social and environmental factors such as climate change, pandemics like COVID-19, etc.

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  • Pruthvi Don
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