Consider the following statements: I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR). II. In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature. Which of the statements given above is/are correct?

1. A. I only
2. B. II only
3. C. Both I and II
4. D. Neither I nor II

Answer: B

Explanation

Statement I is incorrect. The Business Responsibility and Sustainability Report (BRSR) framework was introduced by the Securities and Exchange Board of India (SEBI), not the Reserve Bank of India (RBI). SEBI mandates listed companies to submit BRSR as part of their annual reports, replacing the older Business Responsibility Report (BRR). Statement II is correct. The BRSR aims to provide quantitative and standardized disclosures on Environmental, Social, and Governance (ESG) parameters. These disclosures are largely non-financial in nature, focusing on aspects like resource consumption, emissions, employee well-being, community engagement, and governance practices, rather than traditional financial performance metrics. The BRSR helps investors make informed decisions by assessing a company’s sustainability performance. ESG reporting and corporate governance are increasingly important topics for UPSC Economy.