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

Arjun Pharma Ltd, a listed entity, is preparing its annual report. Its CFO says environmental data may be published only in a voluntary sustainability brochure. Under SEBI's Listing Regulations framework, what is the correct position for a company within the top 1000 listed entities by market capitalisation?

The company must make environmental disclosures through the Business Responsibility and Sustainability Report included in its annual report, because SEBI mandates BRSR for the top 1000 listed entities by market capitalisation. A voluntary brochure, or disclosure only after a penalty, does not meet this requirement.

  1. AVoluntary brochure is enough since ESG disclosure is optional
  2. BEnvironmental disclosures must be made through the Business Responsibility and Sustainability Report in the annual reportCorrect
  3. CDisclosures are needed only if the company has been penalised for pollution
  4. DDisclosures are required only to the pollution control board, not to shareholders

Explanation

SEBI requires the top 1000 listed entities by market capitalisation to file the BRSR as part of the annual report, covering environmental principles among others. A voluntary brochure does not satisfy this. The obligation does not depend on penalties or on regulator-only filings.

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