The Securities and Exchange Board of India (SEBI) has been making efforts to integrate Environmental, Social, and Governance (ESG) factors into the Indian securities market. Recently, SEBI has taken several steps to encourage ESG reporting and ratings by companies.

One of the key initiatives taken by SEBI is the introduction of the Business Responsibility and Sustainability Reporting (BRSR) framework. The BRSR provides a comprehensive set of ESG metrics that companies can use to report their sustainability performance. SEBI has also made it mandatory for the top 1,000 companies to report on BRSR from FY 22-23, with the requirement for assurance to be gradually introduced from FY 23-24.

To facilitate the reporting process, SEBI has allowed ESG rating providers to register under the Credit Rating Agencies (CRA) norms. These providers can form an industry association and work with the regulator to develop a regulatory framework for ESG reporting in the securities market.

SEBI has also proposed expanding disclosure norms for ESG funds to improve transparency and mitigate the risks of "greenwashing." Asset management companies (AMCs) will be required to disclose their voting patterns on ESG-related resolutions and invest a minimum of 65% of their assets in companies reporting on BRSR and providing assurance on BRSR Core disclosures.

To encourage companies to embrace ESG reporting voluntarily, SEBI has published a list of over 175 companies that have voluntarily disclosed their BRSR reports for FY 2021-22. These reports can serve as a source of inspiration and guidance for companies preparing their BRSR reports.

The reports provide insights into the companies' sustainability performance across a range of ESG metrics, including greenhouse gas emissions, water consumption, waste generation, employee health and safety, and diversity and inclusion.

You can now access some of the participating companies' reports by clicking on the links below:

1. Axis Bank: 

https://www.axisbank.com/Sustainability-Reports/2021-2022/pdfs/AxisBank_BRSR_FY2022_Final.pdf

2. Bharat Forge:

https://www.bharatforge.com/AR2022/pdf/Business-Responsibility-and-Sustainability-Reporting.pdf

3. Tata Power:

https://www.tatapower.com/pdf/investor-relations/business-responsibility-sustainability-report-fy21-22.pdf

4. ICICI Securities: 

https://www.icicisecurities.com/Upload/ArticleAttachments/Business_Responsibility_Report_FY_2021_2022.pdf

5. Dabur: 

https://www.dabur.com/sites/default/files/2022-10/142615-business-responsibility-and-sustainability-report-2021-22-SEBI-BRSR.pdf

6. L&T:

https://investors.larsentoubro.com/pdf/BRSR%202022.pdf

7. Dr Reddy's: 

https://www.drreddys.com/cms/cms/sites/default/files/2022-07/BRSR_FY2022.pdf

8. IOCL: 

https://iocl.com/uploads/Indian1082022.pdf

9. ITC: 

https://www.itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2022/pdf/consolidated-business-responsibility-and-sustainability-report.pdf 

10. Cipla:

https://www.cipla.com/sites/default/files/Business-Responsibility-and-Sustainability-Report.pdf

SEBI's initiatives are part of a global trend towards integrating ESG factors into investment decision-making. By embracing ESG reporting and ratings, Indian companies can not only meet regulatory requirements but also demonstrate their commitment to sustainability and attract responsible investors who value ESG performance.

In conclusion, SEBI's vision for ESG in India is ambitious and forward-thinking, and companies that embrace this vision can gain a competitive advantage in the global market while contributing to a more sustainable future.