Sebi mandates top 500 listed companies to submit Business Responsibility Report; here’s how it will benefit investors

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The report will provide a concise communication about how an organisa-tion’s strategy, governance, performance and prospects create value over time. (Reuters)

The markets regulator has made it mandatory for top 500 listed companies to submit Business Responsibility Report which will give details on areas such as environment, governance and stakeholder’s relationships. Here’s how such additional disclosures benefit investors:

*The report will provide a concise communication about how an organisa-tion’s strategy, governance, performance and prospects create value over time.

*Strategic focus and future orienta-tion: The integrated report should provide insight into the organisation’s strategy and how it relates to the organisation’s ability to create value in the short, med-ium and long term, and to its use of and effects on capital.

*Connectivity of information: It should show a holistic picture of the combination, inter-relatedness and dependencies between the factors that affect the organisation’s ability to create value over time.

*Stakeholder relationships: The report should provide insight into the nature and quality of the organisation’s relationships with its key stakeholders, including how and to what extent the organisation understands, takes into account and responds to their legitimate needs and interests.

*Materiality: It should disclose infor-mation about matters that substantively affect the organisation’s ability to create value over short, medium and long-term.

*The report should be concise and include all material matters, both positive and nega-tive, in a balanced way and without material error.

*The information in an integrated report should be presented: (a) on a basis that is consis-tent over time; and (b) in a way that allows comparison with other organisations to the extent it is material to its own ability to create value over time.

*Companies should disclose all forms of capital raised to stakeholders to enable informed investment decision making.