PRESENTATION ON ESG & BRSR – OPPORTUNITIES FOR

Transcript:PRESENTATION ON ESG & BRSR – OPPORTUNITIES FOR:
PRESENTATION ON ESG & BRSR – OPPORTUNITIES FOR CMAs FOR SIRC OF ICMAI JANUARY 8, 2025 By CS A Sekar a.sekar.cs@gmail.com Cell : 98202-29134 SCOPE, GAMUT AND CONCERNS OF ESG TRIPLE BOTTOM LINE (TBL) ACCOUNTING Source: https://blog.chainpoint.com/blog/triple-bottom-line-measuring-social-and-environmental-kpis TRIPLE BOTTOM LINE (TBL) ACCOUNTING It consists of three Ps: profit, people and planet The phrase “the triple bottom line” was first coined in 1994 by John Elkington, the founder of a British consultancy called SustainAbility The triple bottom line (TBL) is an accounting framework that includes social, environmental and financial results as bottom lines SUSTAINABILITY CONCEPTS TBL v ESG v SUSTAINABILITY TBL is an accounting and reporting framework having the 3 P’s as its components – PEOPLE, PLANET AND PROFITS ESG refers to a framework of responsible investing that considers Environmental (E), Social (S) and Governance (G) in addition to financial factors when making investment decisions. Sustainable development is development that meets the needs of the present, without compromising the ability of future generations to meet their own needs Sustainability = TBL + ESG TBL = Profits as per GAAP + Environment (E) & Social (S) benefits ESG = E & S + Governance (G) Four Pillars of Sustainability ECONOMIC ENVIRONMENT SOCIAL GOVERNANCE 8 Sustainable Development Simple concept but difficult to implement considering diverse viewpoint of stakeholders Four Components: Economics Environment Society Governance “Sustainable development refers to a mode of human development in which resource use aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for the generations to come.” - Dr. APJ Abdul Kalam, former President of India as a Chief Guest in CSR Summit-cum-Awards in 2012 9 Economic Sustainability Economic Sustainability is influenced by: Responsible Management of resources Financial Stability at the macro level Capacity for achieving efficiency and innovation by enterprises Efficient recycling and the use of renewable resources Commitment to promoting policies, programmes and initiatives that address social issues such as poverty, reducing inequalities of wealth & income, gender equality, access to education & health care and other social issues Environmental sustainability issues International co-operation and partnership between public administration and private enterprises Corporate responsibility 10 Sustainability – A balancing act Interconnection between pillars of Sustainability Economic Sustainability v/s Overall Sustainability Prioritising Sustainability Objectives – short term, medium term & long term Understanding stakeholder concerns Balancing and Reconciliation 11 B CLEAR IN ESG PERSPECTIVE