Enhancing Sustainability Reporting: strengthening Natureand Climate Disclosures- ICAI

Sustainability Reporting Standards Board (SRSB) of ICAI is working relentlessly to enhance the culture of accurate and reliable non-financial reporting, develop reporting metrics for Sustainable Development Goals (SDGs), benchmarking sustainability disclosures, strengthening assurance frameworks for non-financial information and capacity building of the profession. ICAI requested interest Individuals /Reputed institutions/firms to send their detailed profit and financial proposal at sustainability@icai.in to conduct research in “Nature & Climate Related disclosure in Business Responsibility and Sustainability Reporting (BRSR) by the Companies in India”.

Recognizing the Importance of Nature and Climate Disclosures:

Nature and climate disclosures are gaining significance due to their crucial role in adaptation, disaster risk management, and addressing societal challenges like biodiversity loss and climate change. Several global
agreements and policies, including the UN’s Sendai Framework for Disaster Risk Reduction (SFDRR) and the EU Green Deal, emphasize the integration of Nature-Based Solutions.
By incorporating nature and climate-related risks and opportunities into financial and business decisions,
companies can drive decarbonization and nature-positive outcomes.

Objectives of the Project:

The primary objectives of the project include:

• Expanding the BRSR framework to incorporate nature and climate-related parameters, enabling companies to monitor and evaluate financial risks and opportunities in these areas.
• Facilitating forward-looking disclosures through scenario analysis, encouraging companies to consider the future implications of their actions.
• Strengthening reporting and disclosures to enhance analysis and benchmarking for sectors such as
  Financial Services, Food and Beverage, Iron and Steel, Pharmaceuticals, and Technological Services.

Integrating Global Reporting Standards:

To ensure the robustness and international alignment of the reporting framework, principles from global reporting standards like the Taskforce on Climate-related Financial Disclosures (TCFD) and the Taskforce on Nature-related Financial Disclosures (TNFD) will be integrated. This alignment will provide a unified approach to sustainability reporting and allow companies to comply with global expectations and reporting requirements.

Methodology and Timeline:

The project will follow a systematic approach, beginning with a literature review and gap analysis to identify the additional climate and nature-related parameters required. Feasibility studies will be conducted to assess the practicality and effectiveness of integrating these parameters into the existing BRSR framework. Furthermore, both generic and sector-specific reporting templates will be developed to ensure comprehensive and tailored reporting. The project timeline is set at two months from the award of the project, ensuring a swift and efficient implementation.

Varsha Laur, Audit Associate, SW India