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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice

Integrated Reporting, GRI and BRSR Reporting Frameworks

This chapter covers the three main ways a company reports non-financial performance: the Integrated Reporting Framework (value creation across six capitals), the GRI Standards (impact-based sustainability disclosures) and SEBI's BRSR (the mandatory Indian format). Learn each framework's structure, principles and purpose, then compare them with facts from a case.

What this chapter covers

This chapter is about how companies report on environmental, social and governance performance. It starts with how sustainability reporting grew out of financial reporting, then takes three frameworks in turn: Integrated Reporting (IIRC), the GRI Standards and BRSR. The first two are global and voluntary. BRSR is the format SEBI requires from listed companies in India.

Each framework has a different logic. Integrated Reporting asks how the organisation creates value over time using six capitals. GRI asks what impacts the organisation has on the economy, environment and people. BRSR asks for structured, principle-wise disclosures built around the nine principles of the National Guidelines on Responsible Business Conduct, and BRSR Core adds assurance on selected indicators.

The chapter links to the rest of the paper. Governance and sustainability concepts tell you what is to be reported. Risk management tells you what is material. This chapter shows how it is disclosed to investors and stakeholders. It also helps in later papers that deal with compliance, audit and due diligence.

The paper has a part on Environment and Sustainability Reporting that carries 15 of the 100 marks, and this chapter is its core. The answers are descriptive, so you are expected to explain structures, principles and differences, and to apply them to a company situation. A student who can list the six capitals, the GRI standard series, the BRSR sections and the BRSR Core attributes, and then compare the frameworks, can write complete answers. BRSR is also a live compliance area for a company secretary in practice, so the effort pays off at work too.

Integrated Reporting Framework, Global Reporting Initiative Framework and Business Responsibility and Sustainability Reporting: topics in the order to study them

  1. 1Evolution of Sustainability ReportingIt gives the background and shows why financial reports alone were not enough, which makes the three frameworks easier to place.
  2. 2Integrated Reporting Framework (IIRC)It is the most concept-driven framework, so learn its purpose, guiding principles and content elements before the detailed standards.
  3. 3Six Capitals and Value Creation ModelIt builds directly on the framework and is a favourite for short and long answers, so study it right after.
  4. 4Global Reporting Initiative (GRI) Standards StructureYou need the layout of Universal, Sector and Topic Standards before you can understand how GRI reporting works.
  5. 5GRI Reporting Principles and MaterialityPrinciples and the material topics process only make sense once you know the structure of the standards.
  6. 6Business Responsibility and Sustainability Reporting (BRSR)It is the Indian mandatory format, so take it once you have the global ideas of value creation and impact materiality in mind.
  7. 7BRSR Core and Value Chain AssuranceIt is an extension of BRSR, so it needs the main format first.
  8. 8BRSR versus BRR, GRI and Integrated ReportingComparison questions need all earlier topics, so keep this for the end and use it to revise the whole chapter.

How to prepare Integrated Reporting Framework, Global Reporting Initiative Framework and Business Responsibility and Sustainability Reporting

Treat this as a chapter of structures and comparisons. Your aim is to hold each framework as a short skeleton and then add detail and examples.

  1. Read the evolution topic once and note the sequence of steps from financial reporting to integrated and mandatory reporting. Keep it brief.
  2. For each framework, write a one-page skeleton: purpose, who issues it, whether it is mandatory, structure, principles and key terms.
  3. Learn the six capitals as a list and attach a simple example of each from an Indian company, such as a plant for manufactured capital or employee training for human capital.
  4. For GRI, learn the three series of standards and the reporting principles, and be clear how impact materiality differs from financial materiality.
  5. For BRSR, learn the three sections, the nine principles and the difference between essential and leadership indicators. Then add BRSR Core and its assurance requirement. Check the latest SEBI circulars and ICSI study material for the current applicability and phase-in dates.
  6. Build a comparison table of BRR, BRSR, GRI and Integrated Reporting on your own paper, covering purpose, audience, mandatory or voluntary, and focus.
  7. Practise written answers in the format: provision or framework point, analysis of the facts given, conclusion. Time yourself to write one long and two short answers.

Common mistakes in Integrated Reporting Framework, Global Reporting Initiative Framework and Business Responsibility and Sustainability Reporting

  • Mixing up the three frameworks and writing GRI points in an Integrated Reporting answer.

    Fix: Keep a one-line identity for each: Integrated Reporting is value creation, GRI is impact, BRSR is the mandatory Indian format.

  • Listing the six capitals without explaining how they connect to the business model.

    Fix: For each capital, write one line on how it is used and how it changes. Draw the value creation flow in your answer.

  • Treating materiality as the same thing in every framework.

    Fix: State clearly whose view of materiality the framework uses and how material topics are identified, then give the reason.

  • Writing BRSR from memory of the old BRR and missing the new structure and BRSR Core.

    Fix: Study BRSR from current material, learn the sections and indicators, and treat BRSR Core and value chain assurance as separate topics.

  • Quoting applicability dates and company thresholds from memory.

    Fix: Check the latest SEBI circulars and ICSI study material. If unsure, describe the phased approach in words rather than giving a wrong figure.

  • Giving a theory dump when the question gives a company situation.

    Fix: Use the facts given, name the relevant framework element, apply it to the case and end with a clear conclusion.

Last-day revision: Integrated Reporting Framework, Global Reporting Initiative Framework and Business Responsibility and Sustainability Reporting

  • Integrated Reporting explains how an organisation creates, preserves or erodes value over time.
  • The six capitals are financial, manufactured, intellectual, human, social and relationship, and natural.
  • Integrated Reporting is built on guiding principles and content elements, not on a fixed list of indicators.
  • GRI Standards have three parts: Universal Standards, Sector Standards and Topic Standards.
  • GRI 1 covers the foundation, GRI 2 general disclosures and GRI 3 material topics.
  • Topic Standards are numbered in the 200 (economic), 300 (environmental) and 400 (social) series.
  • GRI materiality is based on the organisation's significant impacts on the economy, environment and people.
  • An organisation reports either in accordance with the GRI Standards or with reference to them.
  • BRSR replaced the earlier Business Responsibility Report (BRR) for listed companies under SEBI's requirements.
  • BRSR has Section A General Disclosures, Section B Management and Process Disclosures and Section C Principle-wise Performance.
  • BRSR is built around the nine principles of the National Guidelines on Responsible Business Conduct, with essential and leadership indicators.
  • BRSR Core is a smaller set of key indicators across nine attributes that needs assurance, and value chain disclosures are being phased in.

Integrated Reporting Framework, Global Reporting Initiative Framework and Business Responsibility and Sustainability Reporting practice questions

Integrated Reporting Framework, Global Reporting Initiative Framework and Business Responsibility and Sustainability Reporting in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Integrated Reporting Framework, Global Reporting Initiative Framework and Business Responsibility and Sustainability Reporting: frequently asked questions

Is BRSR mandatory for all companies?

No. SEBI requires it from listed companies as per its prescribed applicability, which was phased in by market capitalisation. Check the latest SEBI circular for the current list of companies covered.

What is the main difference between GRI and Integrated Reporting?

GRI focuses on a company's impacts on the economy, environment and people, using standardised disclosures. Integrated Reporting focuses on how the organisation creates value over time using the six capitals, and gives a concise connected view of strategy, governance, performance and outlook.

Do I need to memorise the BRSR format in full?

You need the structure: the three sections, the nine principles, and the difference between essential and leadership indicators. You should also know the purpose of BRSR Core. You do not need to memorise every question in the format.

How should I answer a comparison question on these frameworks?

Pick a few clear parameters such as purpose, audience, mandatory or voluntary status, structure and focus. Compare the frameworks on each point in short lines, and add a one-line conclusion.