The São Paulo Stock Exchange and the Securities and Exchange Board of India (SEBI) have shown their commitments to sustainability reporting, as both announce new requirements for companies in their jurisdiction.
SEBI oversees all the stock exchanges in India, and its guidance extends to all listed companies in the country. In November 2011, SEBI mandated that listed entities must submit Business Responsibility Reports, as a part of their Annual Reports. This requirement is initially only applicable to the top 100 companies in terms of market capitalization, and will be extended to other companies in phases.
In a similar move, the São Paulo stock exchange, BM&FBOVESPA, has announced that it will be adopting a report or explain sustainability reporting model for listed companies in 2012. GRI promotes a report or explain approach to sustainability reporting, where companies report their sustainability performance or explain why if they do not.
In its mission to inspire best practice in transparency and management, BM&FBOVESPA believes that the implementation of the report or explain model will encourage listed companies to report on environmental, social and governance issues, which will improve sustainability actions and create greater transparency for investors.
Teresa Fogelberg, GRI’s Deputy Chief Executive, said, “Stock exchanges are a driving force for sustainability disclosure – raising awareness and standards among listed companies. In particular, the moves by stock exchanges in emerging markets like India and Brazil are exemplary and will go a long way to creating greater transparency and better disclosure in the economy.”
To help companies unfamiliar with sustainability reporting, BM&FBOVESPA held introductory workshops in January at its headquarters in São Paulo, in partnership with GRI.
The workshops, which were extended due to high demand, were led by Glaucia Terreo, Network Manager of GRI’s Focal Point Brazil. The workshops attracted some 150 participants, including investors and sustainability professionals.
Source: GRI.
