CB BureauThe Ministry of Corporate Affairs will soon come out with a sustainability reporting framework for companies to ensure that they follow certain parameters while meeting environmental challenges. ‘Any corporate body while they perform, while they do corporate social responsibility, they should also ensure certain parameters (are met),’ Corporate Affairs Minister Veerappa Moily stated to the media on the sidelines of the Darbari Seth Memorial Lecture 2012, organised by The Energy and Resources Institute (TERI) in New Delhi.
He said it would be mandatory for companies to meet environmental challenges as well as challenges in ensuring the sustainability of the society. According to him, the sustainability framework should be ready within a month or two.
Stating that sustainability is a character of society and civilisation, Moily said the crisis of sustainability could adversely impact human civilization. Growth has to be sustained with sustainability of environment and needs to include the social and geographical aspects of society, he asserted.
‘The world cannot afford to continue to consume at a rapid pace even as our natural resources become scarce. We need radical and innovative solutions deployed on a mass scale. It must be remembered that tomorrow’s challenges cannot be solved with yesterday’s thinking,’ Moily said.
Earlier this month, market regulator Sebi had asked all listed companies to mandatorily submit an annual ‘business responsibility report‘ (BR report), wherein they would have to disclose compliance with various environmental, social and governance aspects. Among other aspects, listed companies have been directed to disclose whether they have strategies or initiatives to address global environmental issues such as climate change and details about any programmes on clean technology, energy efficiency and renewable energy. The business responsibility reports would be mandatory for the top 100 listed entities based on market capitalization at BSE and NSE as on 31 March 2012.
The norms were issued in line with ‘National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business’ that was published by Ministry of Corporate Affairs in July 2011.