INDIA Law and Practice Contributed by: Vishnu Sudarsan, Kartikeya Gajjala and Mehar Vasant, J Sagar Associates
In May 2021, the Securities and Exchange Board of India introduced new reporting requirements on ESG parameters: the “Business Responsi - bility and Sustainability Report” (BRSR). These requirements took effect from the financial year 2022–23, and from FY 2023–24 onwards were made mandatory for the top 1,000 listed compa - nies (by market capitalisation), which are obliged to disclose their performance based on the nine principles relating to responsible business con - duct. This initiative is aimed at enabling companies to engage more meaningfully with their stake - holders, by encouraging them to look beyond financials and towards social and environmental impacts. The report covers: • research, development and investments in technologies that improve ESG impact; • social impact assessments of projects under - taken as per applicable law; • beneficiaries of corporate social responsibil - ity projects (including from vulnerable and marginalised groups); • emissions reduction and waste-management initiatives; and • mechanisms for addressing human rights issues. In July 2023, the “BRSR Core” was introduced, as a sub-set of the BRSR, consisting of a set of key performance indicators/metrics under nine ESG attributes, and applies mandatorily to the top 150 listed companies (by market capitalisa - tion) in FY 2023–24, to the top 250 listed com - panies in FY 2024–25 and to the top 1,000 listed companies by FY 2026–27 in a phased manner. The central government is considering intro - ducing similar reporting obligations for unlisted companies. Indian companies have also been
voluntarily adopting various ESG policies aimed at reducing their carbon footprint and increasing expenditure on corporate social responsibility. India is also a signatory to the United Nations Framework Convention on Climate Change, 1992 and has adopted the Paris Agreement under its framework. Courts in India, includ - ing the Supreme Court, have interpreted and enforced the rights and obligations of parties under Indian law in light of such treaty commit - ments. 2.8 Illegal Mining The Minerals (Other than Atomic and Hydro Car - bons Energy Minerals) Concession Rules, 2016 define “illegal mining” as any reconnaissance, prospecting or mining operations undertaken by any person or company in any area without hold - ing a mineral concession. The MMDR Act empowers the state govern - ments to make rules to prevent the illegal mining, transportation and storage of minerals. Thus, the control of illegal mining is primarily the responsi - bility of the state governments. These rules may provide for: • the establishment of check-posts to check minerals in transit; • the establishment of weighbridges to meas - ure quantities of minerals being transported; and • inspection, checking and search of minerals at their place of excavation or storage, or dur - ing transit. The punishment for illegal mining prescribed by the MMDR Act is imprisonment for up to five years and a fine of up to INR5 lakh per hectare of the area.
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