Consider the following statements :

I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR).

II. In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature.

Which of the statements given above is/are correct?
(a) I only (b) II only (c) Both I and II (d) Neither I nor II

The correct answer is (b) II only.

Here’s a detailed explanation:

Statement I: Incorrect. The mandate for listed companies to submit a Business Responsibility and Sustainability Report (BRSR) does not come from the Reserve Bank of India (RBI). It comes from the Securities and Exchange Board of India (SEBI). SEBI regulates India’s stock markets and the companies listed on them. The RBI’s primary role is to regulate the country’s monetary policy and banking system.
Statement II: Correct. The very purpose of the BRSR is to capture a company’s performance on non-financial parameters. These are also known as ESG (Environmental, Social, and Governance) metrics. This includes disclosures on:
- Environmental: Energy and water consumption, greenhouse gas (GHG) emissions, waste management.
- Social: Employee well-being, diversity, community engagement, customer welfare.
- Governance: Board policies, anti-corruption measures, stakeholder relations. These are “non-financial” because they measure a company’s impact on the planet and people, rather than just its monetary profit or loss.