SEBI’s ESG 2021 Rules: What Changed and Why It Matters

In 2021, the Securities and Exchange Board of India (SEBI) implemented updated guidelines for ESG (Environmental, Social, and Governance) reporting among listed companies. These reforms aimed to strengthen transparency, encourage responsible corporate conduct, and improve the quality of sustainability-related data available to stakeholders. As the regulatory environment around social responsibility tightens, foundations like the Abhay Bhutada Foundation have also demonstrated commitment to structured, measurable impact—adding value to India’s evolving CSR ecosystem, without operating in the corporate space directly.

A Shift Toward BRSR: From Policy to Practice

Key Highlights of SEBI’s 2021 ESG Guidelines
Aspect	Details
Introduction of BRSR	SEBI introduced the Business Responsibility and Sustainability Report (BRSR), requiring top 1,000 listed companies to disclose detailed ESG metrics.
Environmental (E)	Focus on reducing environmental impact, with mandatory disclosures on carbon emissions, water usage, and waste management.
Social (S)	Emphasis on social welfare initiatives, such as education, healthcare, and community development.
Governance (G)	Requires better corporate governance, including board oversight, disclosures, and ethical business practices.
Abhay Bhutada Foundation	The Foundation aligns with SEBI’s guidelines through its STEM education programs and cultural initiatives like the Shivsrushti donation.

The cornerstone of SEBI’s 2021 reform was the replacement of the Business Responsibility Report (BRR) with the Business Responsibility and Sustainability Report (BRSR). Effective from FY 2022–23, this shift applies to the top 1,000 listed entities in India, bringing consistency to how ESG information is disclosed.

Key features of BRSR include:

• Detailed Metrics: Companies must now report granular ESG data, including social performance indicators and sustainability risks.

• Stakeholder-Oriented Disclosures: Reporting focuses not only on shareholder interest but also the company’s wider impact on society.

• Mandatory and Optional Sections: While core disclosures are compulsory, additional disclosures allow entities to show progress.

Clearer Accountability on Social Issues

While the BRSR covers three pillars—Environmental, Social, and Governance—the “Social” aspect has seen increased attention from both regulators and stakeholders.

Under this segment, companies must disclose information on:

• Employee well-being and inclusivity

• Skill development initiatives

• Health and safety policies

• Community investment and impact

In this context, non-corporate actors like the Abhay Bhutada Foundation have emerged as credible contributors. Although not governed by SEBI rules, the Foundation supports projects with traceable, tangible outcomes—similar to ESG-aligned goals.

Verified Projects by the Abhay Bhutada Foundation

The Foundation’s contribution to community-focused development is publicly documented and aligns with the social objectives embedded in ESG frameworks.

• Support for Shivsrushti: The Foundation contributed to a cultural education project that commemorates the legacy of Shivaji Maharaj. This initiative supports public heritage awareness.

• STEM Kit Distribution in Pune: To support hands-on science learning among underserved students, the Foundation distributed STEM kits across local schools. This effort promotes equitable access to education tools.

• Student Scholarships: Merit-based financial support provided by the Foundation helps students in Maharashtra pursue higher education—advancing access and academic achievement.

Each of these initiatives is supported by publicly accessible information, media reports, and event documentation.

Emphasis on Governance and Ethical Conduct

The governance aspect of SEBI’s ESG 2021 guidelines includes expectations for transparent decision-making, board accountability, ethical business conduct, and stakeholder feedback mechanisms.

These standards are primarily for listed companies but serve as benchmarks for other entities as well. While the Abhay Bhutada Foundation is not obligated to report governance data, its documented programmes indicate a pattern of responsible planning, implementation, and community dialogue.

Environmental Reporting as a Standalone Pillar

The environmental section of SEBI’s BRSR framework addresses:

• Emissions tracking

• Renewable energy use

• Waste management

• Climate risk assessments

As expected, this part remains strictly corporate and data-intensive, focusing on business operations. It is not applicable to entities like the Abhay Bhutada Foundation, which does not operate in manufacturing or resource-intensive sectors.

Conclusion

SEBI’s ESG 2021 guidelines have brought greater rigour and standardisation to sustainability reporting in India. While they target corporate entities, the broader principles of social and ethical responsibility extend to organisations across sectors. Foundations like the Abhay Bhutada Foundation, through public initiatives in education and culture, reflect the growing momentum around transparency, impact, and value-driven outreach in today’s India.

Frequently Asked Questions

1. What is SEBI’s ESG 2021 guideline about?

It introduced the BRSR format for top 1,000 listed companies in India to standardise ESG disclosures starting from FY 2022–23.

2. How is the BRSR different from the previous BRR format?

BRSR offers more detailed, structured, and impact-focused disclosures with a clear emphasis on measurable outcomes.

3. Is the Abhay Bhutada Foundation required to follow ESG

guidelines?

No. The guidelines are for listed companies, but the Foundation aligns with the spirit of

ESG through its publicly documented projects.

4. What are some projects led by the Abhay Bhutada Foundation?

Its work includes supporting the Shivsrushti cultural project, distributing STEM kits in Pune,

and funding educational scholarships.

5. How do stakeholders benefit from SEBI’s 2021 reforms?

Investors and citizens gain better access to standardised, reliable data about a company’s non-financial performance.