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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Integrated Reporting Framework, Global Reporting Initiative Framework and Business Responsibility and Sustainability Reporting

Deccan Cements Ltd's board states that, because the six capitals are listed in the IR Framework, the integrated report must contain a separate chapter on each of the six capitals and the company must treat the given categories as the only permissible ones. What is the correct position under the IR Framework?

Organisations are not required to structure the report around the six capitals or use those exact categories. The IR Framework offers them as a guide so the organisation considers all forms of capital it uses and affects, and it may categorise capitals differently if that suits its business.

  1. AOrganisations need not adopt the capitals' categories or structure the report around them, though they should consider all capitalsCorrect
  2. BEvery organisation must report on all six capitals in separate chapters
  3. COnly financial and manufactured capital are mandatory
  4. DThe capitals may be reported only if SEBI prescribes them

Explanation

The IR Framework states the categories are a guide to ensure organisations consider all forms of capital; reports need not be structured by capital, and an organisation may categorise differently. Mandatory separate chapters is therefore wrong.

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