Overview of ESG Reporting

In the Indian business environment, stakeholders and market regulators are increasingly interested in the sustainability and ESG compliance of companies. As businesses recognize the importance of protecting the environment, they need guidance in planning, sourcing, delivering, financing, and measuring the impact of their products and services. TAP GLOBAL offers sustainability solutions to help companies become more agile, resilient, and sustainable while spotting risks and harnessing opportunities. Our team provides guidance to clients in the corporate, private equity, and public sectors on a range of issues related to sustainability and ESG.

Meaning of ESG Reporting

ESG reporting refers to the process of disclosing information by companies regarding their performance on environmental, social, and governance (ESG) issues. ESG reporting has become increasingly important for companies as investors, customers, and other stakeholders are seeking more transparency and accountability from businesses in these areas.

Environmental issues cover a wide range of topics such as energy use, greenhouse gas emissions, waste management, and water usage. Social issues include employee welfare, diversity and inclusion, human rights, community engagement, and consumer protection. Governance issues refer to the structure and practices of a company's leadership and management, such as board composition, executive compensation, and risk management.

ESG reporting is not only important for external stakeholders but also for internal decision-making purposes. By tracking and reporting ESG metrics, companies can identify areas where they can improve their sustainability and ethical practices, reduce risks, and enhance their reputation.

Regulatory Framework for ESG

1. Ministry of Corporate Affairs

The Ministry of Corporate Affairs (MCA) introduced the concept of ESG reporting in India in 2009 through the issuance of Voluntary Guidelines on Corporate Social Responsibility. Following this, the Business Responsibility Reporting (BRR) and National Guidelines on Responsible Business Conduct (NGRBC) were introduced. These guidelines were aimed at encouraging companies to adopt sustainable practices and report on their environmental, social, and governance (ESG) performance.

2. The Companies Act 2013

The Indian Companies Act 2013 introduced one of the earliest ESG disclosure requirements for companies. Under this Act, Indian companies must include in their report details regarding the conservation of energy, along with annual financial statements. Further, the director of an Indian company has a statutory duty to act in good faith for promoting the objectives of the company for the benefit of its members as a whole and in the best interests of the company, the shareholders, employees, the community, and for the protection of the environment.

3. Securities and Exchange Board of India (SEBI):

SEBI has introduced several guidelines related to ESG reporting in recent years. In 2021, SEBI introduced the Business Responsibility and Sustainability Reporting (BRSR) requirement for listed entities. The BRSR seeks disclosures from listed entities on their performance against the nine principles of the 'National Guidelines on Responsible Business Conduct' (NGBRCs). Reporting under each principle is divided into essential and leading indicators, which should be mandatorily reported. The reporting of leading indicators is voluntary, but listed entities should endeavor to report the leading indicators as well.

4. Other Regulatory Bodies:

Apart from MCA and SEBI, other regulatory bodies such as the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority (IRDAI) have also issued guidelines related to ESG reporting for companies operating in the banking and insurance sectors, respectively. These guidelines require companies to adopt sustainable practices and report on their ESG performance.

Benefits of ESG Reporting

Following are the benefits of ESG Reporting:

• Ensure compliance with Indian regulatory requirements for ESG reporting:

TAP GLOBAL ESG reporting services ensure that your organization complies with the Indian regulatory requirements for ESG reporting. The Indian Companies Act mandates companies to report on their environmental and social impact and follow good governance practices. Our team of experts will help you navigate through the regulatory landscape and ensure that you meet all the regulatory requirements. This not only saves you from any legal penalties but also enhances your reputation as a responsible and compliant organization.

• Enhance your company's sustainability practices and reputation:

TAP GLOBAL ESG reporting services help you enhance your company's sustainability practices and reputation. Sustainability has become an essential aspect of business operations, and companies are expected to integrate sustainable practices in their strategies. Our team of experts helps you develop and implement sustainability practices that reduce your environmental impact, enhance your social impact, and promote good governance practices. These sustainable practices and ESG reporting help build a positive brand reputation, making you more attractive to customers, investors, and stakeholders.

• Identify and mitigate ESG risks that could impact your business:

TAP GLOBAL ESG reporting services help you identify and mitigate ESG risks that could impact your business. Environmental and social risks can significantly impact your business operations, reputation, and financial performance. Our experts conduct a thorough analysis of your operations, identify potential risks, and recommend measures to mitigate them. This not only minimizes the risks to your organization but also enhances your sustainability performance.

• Improve stakeholder engagement by providing transparent and reliable ESG information:

TAP GLOBAL ESG reporting services help you improve stakeholder engagement by providing transparent and reliable ESG information. Stakeholders are increasingly concerned about the impact of business operations on the environment and society. Our ESG reporting services provide stakeholders with reliable and transparent information about your ESG performance. This helps build trust, enhances stakeholder engagement, and promotes long-term relationships.

• Benchmark your company's ESG performance against industry peers:

TAP GLOBAL ESG reporting services help you benchmark your company's ESG performance against industry peers. Comparing your ESG performance with that of your industry peers helps you identify areas of improvement and set realistic sustainability goals. Our experts analyze the ESG performance of your peers and help you develop strategies that enhance your sustainability performance and position you as a leader in your industry.

• Identify areas for improvement and set sustainability goals:

TAP GLOBAL ESG reporting services help you identify areas for improvement and set sustainability goals. Our team of experts conducts a thorough analysis of your operations, identifies areas for improvement, and recommends measures to enhance your ESG performance. We help you set realistic sustainability goals and develop strategies to achieve them. This not only improves your ESG performance but also enhances your reputation as a responsible and sustainable organization.

• Enhance your brand value and appeal to socially responsible investors:

Partnering with TAP GLOBAL for ESG reporting can significantly enhance your brand value and appeal to socially responsible investors. As consumers become increasingly aware of their impact on the environment and society, they are more likely to support businesses that demonstrate a commitment to sustainability. By reporting on your company's ESG performance, you can showcase your commitment to social responsibility and sustainability, and differentiate your brand from competitors that do not prioritize sustainability. Additionally, socially responsible investors are more likely to invest in companies that prioritize ESG factors. By demonstrating your commitment to sustainability, you can attract investment from this growing segment of the investment community, helping to fuel the growth of your business.

• Improve employee morale and retention by demonstrating your commitment to sustainability:

Companies that prioritize ESG factors often experience higher levels of employee engagement, job satisfaction, and retention. Employees want to work for companies that align with their personal values, and by demonstrating your commitment to sustainability through ESG reporting, you can create a more engaged and motivated workforce. Additionally, employees are more likely to feel proud of their employer and their work when they know they are contributing to a sustainable future. By prioritizing ESG factors, you can attract and retain top talent, reduce employee turnover, and create a positive work culture that promotes sustainability.

• Reduce operating costs through more efficient use of resources:

ESG reporting can help your company identify areas where you can reduce waste, increase efficiency, and cut costs. By measuring and reporting on your company's environmental impact, you can identify opportunities to reduce your carbon footprint, conserve water, and minimize waste. These efforts not only contribute to a sustainable future but can also result in cost savings for your company. By implementing sustainable practices, you can reduce your reliance on costly resources, improve your bottom line, and create a more sustainable business model.

• Stay ahead of the curve on ESG reporting and sustainability trends:

The field of ESG reporting and sustainability is constantly evolving, and companies that stay ahead of the curve are more likely to succeed in the long run. By partnering with TAP GLOBAL for ESG reporting, you can stay up-to-date on the latest sustainability trends, emerging best practices, and regulatory changes. This knowledge can help you make strategic decisions that position your company for long-term success and keep you ahead of competitors that are slower to adapt to changing market conditions. By being proactive and staying informed, you can build a sustainable business that is well-positioned for growth and success in the future.

Services Offered by TAP GLOBAL

ESG reporting can help companies in protecting and creating value for the business, people, society and the world, which can be done through the guidance of a recognized leader in ESG Reporting like TAP GLOBAL.  

TAP GLOBAL offers the following services in this regard:

• Guidance on ESG best practices and frameworks

 TAP GLOBAL provides guidance on the best practices and frameworks related to ESG reporting. This includes understanding the latest guidelines, regulations, and standards related to ESG reporting, such as the SEBI guidelines for listed companies in India. The experts at TAP GLOBAL help clients develop a comprehensive ESG framework that aligns with their business objectives and helps them achieve their sustainability goals.

• ESG Strategy Development

TAP GLOBAL helps clients develop a robust ESG strategy that aligns with their overall business strategy. This includes identifying ESG risks and opportunities, setting targets and metrics, and developing an implementation plan that considers all stakeholders.

• ESG Materiality Assessment

TAP GLOBAL conducts a materiality assessment to identify the ESG factors that are most relevant to a client's business. This helps clients prioritize and focus their efforts on the most significant ESG issues that can have a material impact on their business.

• Data Collection and Analysis

TAP GLOBAL helps clients collect and analyze data related to ESG factors, including social and environmental performance metrics, as well as governance-related factors. This includes developing data collection protocols, analyzing the data, and identifying key trends and insights.

• Stakeholder Engagement

TAP GLOBAL helps clients engage with their stakeholders, including investors, customers, employees, and communities, to understand their expectations and concerns related to ESG issues. This includes developing a stakeholder engagement plan, conducting surveys and interviews, and facilitating dialogue with stakeholders.

• ESG Reporting and Disclosure

TAP GLOBAL helps clients prepare their ESG reports and disclosures, including sustainability reports, annual reports, and other disclosures required by regulators. This includes developing ESG reporting frameworks, collecting and analyzing data, preparing reports, and ensuring compliance with regulatory requirements.

• Third-Party Assurance

 TAP GLOBAL provides third-party assurance services to clients to verify the accuracy and completeness of their ESG reports and disclosures. This includes reviewing and auditing the data, ensuring compliance with reporting frameworks and standards, and issuing assurance reports.

• Sustainability Risk Assessment

TAP GLOBAL conducts sustainability risk assessments to identify and assess the risks associated with ESG issues. This includes conducting a comprehensive risk assessment, developing risk mitigation strategies, and implementing risk management plans.

• ESG Training and Capacity Building: TAP GLOBAL provides training and capacity-building services to clients to help them develop the skills and knowledge required to implement ESG practices effectively. This includes conducting training workshops, developing training materials, and providing ongoing support and guidance.