The Institute of Chartered Accountants of India (ICAI) is the authority of the accountancy for the country and is said to be the oldest service provider concerning the financial growth in the country. ICAI is working harder via sustainable reporting standards so as to regulate the preciseness of the economic culture, reliable non-financial reporting, develop reporting metrics for Sustainable Development Goals (SDGs), benchmarking sustainability disclosures, strengthening assurance frameworks for non-financial information, and capacity building of the profession.
To make the sustainability reporting in the country stronger ICAI has adopted “Sustainability Reporting Maturity Model (SRMM) Version 1.0” towards the broad scoring tool on the grounds of the committee on business responsibility reporting which consists of the Ministry of Corporate Affairs (MCA) in August 2020.
CA. Nihar N Jambusaria, President, ICAI commented that “In order to be more transparent and responsible towards the society at large, now-a-days organizations are adopting a triple bottom line approach – People, Planet and Profit. This Sustainability Reporting Maturity Model(SRMM) would form the foundation for benchmarking sustainability reporting of Indian corporates.”
“This Model would on one hand facilitate the corporates to assess their sustainability maturity level and at the same time will also aid in improving their scores with the availability of this easy-to-use tool thereby achieving the vision of sustainable ecosystem across the country. Our members will play an important role in helping the organizations increase their level of preparedness on the sustainability parameters.” President, ICAI commented.
BRSR (Business Responsibility and Sustainability Report) scoring mechanism included a sum of 300 scores via finishing the scoring of all three sections and nine principles of the BRSR. SRMM (Sustainability Reporting Maturity Model) will permit the rating agencies and assurance providers to distinguish the sustainable character of the Indian businesses from foreign companies. SRMM is enrolled with the trademark due to the innovative concept in the sustainability ecosystem.
The sustainability reporting maturity model is the new solution that provides the possibility for every corporate complying with BRSR towards the individually assess its position vis a vis numerous sustainability reporting maturity slabs and obtain the target of the sustainable trades. Level 1, Level 2, Level 3, and Level 4 of sustainability maturity of the corporates has been defined upon the range of the scores received through the corporate in the fiscal year according to the BRSR scoring mechanism.
The corporate can self-evaluate its present level of maturity on the SRMM they can find where they are needed to be the target and then build the road map for updating it to the higher level of maturity. For the sustainable green economy, there is a requirement for every firm which raises their effective causes and increases the disclosure for vice versa non-economical detail. ICAI indeed has incorporated the planning for developing version 2.0 of SRMM based on the view or inputs from the businesses with respect to the execution of SRMM version 1.0.