Recent changes proposed by SEBI suggest the market regulator is fixated on ease of doing business instead of plugging gaps in companies’ sustainability reporting, risking investor interest.
It’s only been a year since India’s market regulator made sustainability reporting mandatory for the top 1,000 listed companies. It is now looking to relax these norms for the sake of “ease of doing business”—a plan that could prove counterproductive.
The Securities and Exchange Board of India has proposed three main changes: make third-party assurance on key disclosures voluntary instead of mandatory, reduce the scope of disclosures companies need from supply-chain partners and introduce “green credits”.
The first proposal is the most egregious of the lot. Removing the need for a third-party audit opens the door for companies to report …
Azman writes on climate change, ESG, and how a warming world impacts businesses and people alike. Prior to The Morning Context, he led climate coverage at BloombergQuint, where he started his career as a desk writer.
Writer
azman@mailtmc.com
Mumbai