Module: | SEBI LODR & Corporate Governance Frameworks
Q2: Consider the following statements regarding the Business Responsibility and Sustainability Reporting (BRSR) Core framework for the financial year 2025-2026:
1. BRSR Core represents a subset of the comprehensive BRSR format, focusing exclusively on qualitative narratives without quantitative metrics.
2. Reasonable assurance of BRSR Core is mandatory for the top 1000 listed entities by market capitalization for FY 2025-2026.
3. The BRSR Core integrates Key Performance Indicators (KPIs) relevant to the Indian market context, such as job creation in smaller towns.
Which of the above statements is/are incorrect?
2. Reasonable assurance of BRSR Core is mandatory for the top 1000 listed entities by market capitalization for FY 2025-2026.
3. The BRSR Core integrates Key Performance Indicators (KPIs) relevant to the Indian market context, such as job creation in smaller towns.
Which of the above statements is/are incorrect?
✅ Correct Answer: B
🎯 Quick Answer:
B. Only 1 and 2 are incorrect.Structural Breakdown: Statement 1 is incorrect; BRSR Core heavily emphasizes quantifiable, measurable metrics rather than just qualitative narratives.
Statement 2 is incorrect; for FY 2025-2026, reasonable assurance targets the top 500 listed entities, while the top 1000 is for the following cycle.
Statement 3 is correct.
Historical/Related Context: SEBI introduced the BRSR Core in 2023 with a phased glide path for mandatory reasonable assurance to prevent greenwashing.
Causal Reasoning: By phasing in reasonable assurance, SEBI ensures audit firms and companies build the necessary capacity to report accurate ESG metrics without overwhelming the corporate sector instantly.