Consider the following statements : I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR). II. In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature. Which of the statements given above is/are correct?

(a) I only
(b) II only ✓ UPSC's answer
(c) Both I and II
(d) Neither I nor II

Why the answer is (b)

• The Business Responsibility and Sustainability Report is mandated by SEBI, the securities regulator, not the RBI: since FY 2022–23 the top 1,000 listed companies by market capitalisation must file it with their annual report — statement I is wrong.

• The BRSR covers environmental, social and governance (ESG) performance — emissions, energy and water use, employee welfare, community impact, ethics — measured against the National Guidelines on Responsible Business Conduct; these disclosures are largely non-financial — statement II is correct.

• SEBI has added 'BRSR Core' with assured key indicators and extended it to the value chain of large companies.

• The purpose is to let investors assess sustainability risks beyond the financial statements.

• Hence II only, option (b).

Why the other options are wrong

(a) I only: Statement I is wrong: SEBI, not the RBI, mandates the BRSR, and only for the top 1,000 listed firms.
(c) Both I and II: Statement I is wrong, so both cannot be correct.
(d) Neither I nor II: Statement II is correct: BRSR disclosures are largely non-financial ESG data.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2025, held on 25 May 2025. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.