Explain the regulatory framework with respect to sustainability reporting in India.

Considering the importance of sustainability in businesses, Ministry of Corporate Affairs (MCA) launched Corporate Social Responsibility Voluntary Guidelines in 2009. These Voluntary Guidelines addressed six core elements - Care for all Stakeholders, Ethical functioning, Respect for Workers' Rights and Welfare, Respect for Human Rights, Respect for Environment and Activities for Social and Inclusive Development. To take this further, in 2011, MCA issued 'National Voluntary Guidelines on Social, Environmental and Economical Responsibilities of Business' which encouraged reporting on environment, social and governance issues. In line with the National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business and considering the larger interest of public disclosure regarding steps taken by listed entities from an Environmental, Social and Governance ("ESG") perspective, SEBI decided to mandate inclusion of Business Responsibility Reports ("BRR reports") as part of the Annual Reports for listed entities. SEBI in its (Listing Obligations and Disclosure Requirements) Regulations, 2015 has mandated the requirement of submission of BRR for top 1000 listed entities describing initiative taken by them from an environmental, social and governance perspective in the prescribed format. Regulation 34(2)(f) of SEBI(LODR) Regulations 2015 provides that the annual report shall contain for the top one thousand listed entities based on market capitalization, a business responsibility report describing the initiatives taken by the listed entity from an environmental, social and governance perspective, in the format as specified by the Board from time to time. It also contains that the requirement of submitting a business responsibility report shall be discontinued after the financial year 2021-22 and thereafter, with effect from the financial year 2022-23, the top one thousand listed entities based on market capitalization shall submit a business responsibility and sustainability report in the format as specified by the Board from time to time. Even during the financial year 2021-22, the top one thousand listed entities may voluntarily submit a business responsibility and sustainability report in place of the mandatory business responsibility report.