COP29 Climate Summit Stalemate

India Rejects COP29 Deal: A Summary COP29 Fails to Deliver 2024 United Nations Climate Change Conference Baku, Azerbaijan

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BRSR – Evolution, Journey & Upcoming Complexities

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2007

RBI publishes a framework for acceptance of green deposits.
2012

SEBI adopts NVGs for business responsibility report.
2015

RBI’s annual publication recognizes climate-related financial risks.
2016

RBI joins Network for Greening of Financial Systems (NGFS).
2019

RBI updates priority sector lending targets.
2021

RBI publishes a draft on ‘Disclosure framework on climate-related financial risks, 2024’.
2023

Ministry of Finance announced the formation of a task force on sustainable finance.
2024

SEBI issues new Business Responsibility & Sustainability Reporting (BRSR) requirements.

Elevating standards of accessibility

RBI published a framework for the acceptance of green deposits, which provided guidelines for banks to accept deposits from individuals and institutions for the purpose of funding green projects.

National Voluntary Guidelines

In 2012, SEBI adopted National Voluntary Guidelines (NVGs) for business responsibility reports, which encouraged companies to report on their environmental, social, and governance (ESG) performance.

National Voluntary Guidelines

Financial institutions are increasingly recognizing climate-related financial risks and the need to manage them. RBI’s annual publication recognized these risks for the first time in 2015.

Network for Greening the Financial System

In 2016, RBI joined the Network for Greening the Financial System (NGFS), a global network of central banks and financial regulators focused on promoting sustainable finance.

Disclosure Framework on Climate-Related Financial Risks

In 2021, RBI published a draft on the ‘Disclosure framework on climate-related financial risks, 2024’, which proposed a set of guidelines for banks and financial institutions to disclose their exposure to climate-related risks.

Task Force on Sustainable Finance

In 2023, the Ministry of Finance formed a task force on sustainable finance in India to develop a roadmap for the growth of sustainable finance in the country.

SEBI's Business Responsibility and Sustainability Reporting Requirements

In 2024, SEBI issued new Business Responsibility and Sustainability Reporting (BRSR) requirements, making it mandatory for the top 1,000 listed companies in India to disclose their ESG performance. This is a significant step towards promoting sustainable finance in India.

Sparrow RMS

Few years ago:

Compliance &
finance functions
were unfamiliar
with GRI &
dismissed it as
non-mandatory.

Sentiment:

“We’ll adopt it
only if it’s
mandatory;
otherwise,
mediocrity in
reporting suffices.”

Result:

Introduction of
GRI (or similar
standards) was
blocked initially.

FY23:

GRI, under the
guise of BRSR,
gained entry,
causing a scramble
for data and stress
due to previous
procrastination.

ISSB Standards:

Endorsed by international

securities regulators,

including IOSCO

Impact on SEBI:

Potential adoption of ISSB

Standards, aligning SEBI’s

framework with international

best practices.

TCFD Recommendations:

Integration into ISSB

Standards, leading to

comprehensive climate-

related financial disclosures.

RBI Initiative:

Potential adoption of ISSB

Standards, aligning SEBI’s

framework with international

best practices.

Benefits:

Enhanced credibility,

transparency, investor

confidence, & smoother

capital flows.

Challenges

Implementation may pose

adaptation challenges for

companies and stakeholders.

Support:

SEBI and ESG experts likely

to provide guidance during

the transition phase.

Regulatory Oversight:

SEBI may need to adjust

processes to monitor &

enforce compliance with

new requirements.

Most Advanced ESG Software ever shipped

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