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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board's Accountability on ESG

Meera Chemicals Ltd is within the top 1000 listed entities and files BRSR. Its Board wants to know the distinction between the Essential and Leadership indicators in Section C. Which statement is correct?

Essential indicators in BRSR Section C are mandatory for the applicable listed entities, whereas Leadership indicators are voluntary and encouraged for entities wishing to show greater ESG maturity. The framework therefore sets a compulsory baseline and an optional higher tier of disclosure.

  1. ABoth are voluntary for every entity
  2. BLeadership indicators are mandatory while Essential indicators are voluntary
  3. CEssential indicators are mandatory disclosures, while Leadership indicators are voluntary and encouragedCorrect
  4. DEssential indicators apply only to unlisted companies

Explanation

In BRSR, Essential indicators must be reported by the applicable listed entities, while Leadership indicators are voluntary and meant for entities seeking to demonstrate higher ESG maturity. Reversing them is the common mistake in the distractors.

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