India's updated ESG reporting format and rules

India’s updated sustainability reporting format and rules for ESG ratings providers

For selected Indian listed firms, the Business Responsibility and Sustainability Report (BRSR) core will begin requiring the publication of additional environment, social and governance (ESG) metrics in July 2023. The Business Responsibility Report (BRR) was phased out in favour of the BRSR format in May 2021. While SEBI has set a deadline for the BRSR Core's obligatory compliance, as of FY 2023, all of India's top 1000 listed businesses by market cap are required to submit their BRSR Reports.

From FY 2023, the top 1000 listed firms in India by market capitalisation must submit files in accordance with the BRSR, according to the (SEBI). It ought to be mentioned in their yearly reports. Additionally, the SEBI is putting into practise the "BRSR Core" for assurance by particular listed businesses based on the recommendations of the ESG Advisory Committee and following public consultations. Additionally, in accordance with the standards outlined in the BRSR Core, the Board has agreed to implement disclosures and assurance for the value chain of listed entities.

The BRSR Core includes a particular collection of key performance indicators (KPIs) / metrics across nine ESG criteria and is a subset of the entire BRSR. Additional KPIs have been defined for assurance with an emphasis on the Indian / developing market environment, including employment creation in small towns, company openness, and gross wages paid to women. Intensity ratios based on revenue adjusted for purchasing power parity (PPP) have been introduced to improve global comparability.

The disclosures found in the BRSR are cross-referenced in the BRSR Core as well for convenience. As a result, SEBI has mandated that starting in FY 2023–24, the top 150 listed firms in India by market capitalization must offer "reasonable assurance" on ESG criteria.

It is urged that multinational corporations operating in India exercise caution in this area because most of the leading ESG compliance jurisdictions, like the European Union, now only demand a minimal level of assurance. Limited assurance refers to the expectation that auditors will rely on management disclosures from the company. However, the company's auditors would have to review the organization's ESG measures and confirm its disclosures in accordance with actual processes, performance, and standards in India under the guidance of SEBI. (India Briefing)

India plans to promote sustainable tourism

India is planning a new national tourism policy (NTP) soon (The Hindu). The government has stated that it is time for a new strategy that takes into account the evolving demands of the tourism industry and the nation as a whole since the present NTP was implemented in 2002. In July 2022, the new national tourist policy's draft was made public. The new NTP is anticipated to put a strong emphasis on sustainable tourism, which implies it would seek to reduce the negative effects of tourism on the environment. This will entail taking steps to encourage ecotourism, lessen pollution, and preserve natural resources.

The policy intends to promote responsible, inclusive, and sustainable travel among other things. By minimising tourism's negative effects on social, environmental, and economic factors and maximising its positive effects, the strategy seeks to encourage sustainable travel. The strategy also promotes responsible tourism in order to unite all interested parties in attaining sustainable tourism and improving both the quality of life and the tourist experience.

Creating opportunities for disadvantaged groups of society, such as those who live in distant places, will be a priority in order to promote inclusive growth. The policy promotes ecotourism, or travel practises that result in sustainable tourism. In the framework of their social, economic, cultural, and environmental contexts, tourism activities that can be sustained indefinitely are referred to as green tourism or tourism in the green economy.

The promotion of sustainable tourism, which fully considers past, present, and future economic, social, and environmental repercussions and addresses the requirements of travellers, businesses, the environment, and host communities, is sparked by green tourism.

Natural resource conservation and environmental protection can be achieved through sustainable tourism. Additionally, it can aid in lowering poverty and enhancing local populations' standard of living. A few potential difficulties are connected to sustainable tourism, nevertheless. For instance, it could be more expensive than more conventional types of travel, and it might not be appropriate for many locations.

The NTP is likely to advocate for actions to lessen tourism-related pollution, like utilising cleaner fuels and properly disposing of garbage. This will enhance the air and water quality in tourist areas and contribute to environmental protection. Additionally, it intends to support policies that protect resources including forests, water, and wildlife. This will ensure that tourism is long-term sustainable and help safeguard these resources for present and future generations.

NITI Aayog unveils TCRM Matrix framework to drive innovation in India

The Techno-Commercial Readiness and Market Maturity Matrix (TCRM Matrix) framework, which was recently released by the NITI Aayog, is an evaluation tool that will enable stakeholders to jointly evaluate projects on the scales of technology readiness level (TRL), commercialization readiness level (CRL), and market readiness level (MRL).

The framework is anticipated to assist the government with financial prioritisation, rule-making, risk mitigation, and improved public-private partnerships. Additionally, the TCRM Matrix is anticipated to assist investors in assessing the commercialization and market readiness of their portfolio firms, while industry and start-ups can utilise the tool for internal project planning and decision-making about technology transfer or acquisition.

“Whereas there are a large number of frameworks that focus on one aspect for assessment, the insights they offer are limited in their scope. Hence, there is a need to encourage simultaneous assessment of technological, commercial, and market readiness,” the Aayog said in the working paper which lays out the TCRM Matric framework.

The working paper claims that the suggested TCRM Matrix framework can help to promote innovation, lower risk, and achieve economic and societal advantages by attempting to close these gaps through a collaborative evaluation.

In order to integrate the TCRM Matrix architecture into the larger innovation ecosystem, the working paper offers precise instructions. However, the Aayog stated that the deployment of the TCRM Matrix paradigm requires a thorough examination and contextualization within the distinctive national and sectoral innovation landscapes. (Economic Times)

SC emphasises Shimla development plan needs to balance between growth and environment

To control construction operations there, the Himachal Pradesh government announced the draft Shimla Development Plan last month. A recent hearing for a related petition was held before a bench of Justices B R Gavai and J B Pardiwala. The bench set the matter for hearing on August 11 and stated that it will review the proposal while keeping in mind the need to preserve a balance between development and the environment.

The National Green Tribunal (NGT) issued an order in November 2017 passing a number of directives while noting that unplanned and indiscriminate development in the core, non-core, green, and rural areas within the Shimla planning area had resulted in serious environmental and ecological problems.

The proposal was approved by the previous state government in February 2022, but it never came to be since the NGT issued stay orders because it deemed the plan to be unconstitutional and in violation of earlier orders issued in 2017 to control haphazard buildings in Shimla.

The final development plan, which was in the "draft notification" stage, could not be published due to NGT directives, the apex court was informed on May 3 of this year. 97 objections to the draft development plan had been received, the state had notified the supreme court. In accordance with a directive from the Supreme Court, the state of Himachal Pradesh has six weeks to evaluate and address any objections to the draught development plan before publishing the final version. The highest court had made it clear that after the final development plan is published, it won't be put into action for one month after that.

When put into effect, the "Vision 2041" plan would allow construction in 17 green belts with some restrictions as well as in the core region where it was prohibited by the NGT. The plan contains specific limitations for the number of stories, parking, attic, and height of buildings, and it makes it very apparent that falling trees is not permitted in the green spaces.

The proposal, among other things, calls for transforming Jubbarhatti and Ghandal into activity-based counter-magnet towns with suitable provisions for trade, commerce, health care, and other urban amenities. In order to decongest the core region and accommodate increased population and commercial activity, satellite townships must be created in the nearby areas of Ghandal, Fagu, Naldehra, and Chamiyana. (The Indian Express)

Axing of trees without a permit: NGT directives for policy and guidelines

The National Green Tribunal (NGT) has ordered the Chief Secretary of Punjab to give the Forest Department the right instructions to create a policy regarding the illegal felling of trees in the state in response to a plea submitted by a group of environmental activists. It will take three months to develop the policy and submit it to the Tribunal.

The petitioners, Kapil Dev and Kuldeep Singh Khaira, claimed that the relevant authorities had not responded to their complaint about the illegal felling of trees before the NGT. Their complaint in the case was that the respondent state authorities cut down the trees without taking any action, in contravention of the Environment (Protection) Rules of 1986 and Article 51A of the Constitution.

The NGT subsequently requested a joint committee made up of the Punjab Principal Chief Conservator of Forest to give a report on the situation. The joint committee claimed in its report that there was no legal provision or other way to punish people who cut down, lop, or prune trees without a permit.

In the order, the NGT instructed the Chief Secretary of Punjab to give the Forest Department the proper instructions so that they could create a policy regarding incidents of tree axing. The Tree Protection Act of Delhi may be used as a model, with some modifications deemed necessary by the relevant authorities.

Regarding such events, the Forest Department will act appropriately, and suitable corrective measures for cutting and protection of trees will be taken. (Tribune)

This is a roundup of important policy matters from July 16 - July 31, 2023.