Tag: Governance

Industry Update – MoHFW Notification

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Compounding of Offences under Drugs and Cosmetics Act , 1940 for Pharma and Drug Manufacturers

Ministry of Health and Family Welfare has released a gazette notification notifying the new rules that may be called the Drugs and Cosmetics (Compounding of Offences) Rules, 2025. The rules are framed by the Central Government using the powers conferred by the Drugs and Cosmetics Act, 1940.

The notification introduces rules under an existing act, under section 33 of the Drugs and Cosmetics Act, 1940 (23 of 1940).

These rules provide a framework for “compounding of offences” under the Drugs and Cosmetics Act, 1940. This means that instead of going through full prosecution, certain offences might be resolved by paying a specified amount (compounding amount). The rules outline the process for applying for compounding, the authorities involved, and the conditions for granting immunity from prosecution.

Key highlights of the Drugs and Cosmetics (Compounding of Offences) Rules, 2025 notification:

Compounding of Offences: The primary focus is to establish rules for compounding certain offences under the Drugs and Cosmetics Act, 1940, offering an alternative to traditional prosecution.  

Application Process: The rules detail how an applicant (a company or person involved in the pharma industry) can apply for compounding of an offence. This can be done before or after prosecution begins.  

Compounding Authority: The notification defines the “compounding authority” and how they are appointed by the Central or State Government to manage the compounding process.  

Procedure: It outlines the step-by-step procedure the compounding authority must follow, including gathering reports and making decisions on whether to allow compounding.  

Immunity from Prosecution: The rules explain the conditions under which the compounding authority can grant immunity from prosecution to an applicant.  

Withdrawal of Immunity: The notification also specifies the circumstances under which this granted immunity can be withdrawn.  

Form for Application: The inclusion of a specific form for applying for compounding of offences

Why the need for “Compounding of Offences” ?

The Jan Vishwas (Amendment of Provisions) Act, 2023, aims to decriminalize various offenses in 42 Central Acts, enhancing ease of doing business and living by reducing compliance burdens. It accomplishes this by removing imprisonment and/or fines in many provisions, replacing them with penalties or enhancing existing fines. 

Key features and objectives of the Jan Vishwas Act include:

  • Decriminalization:The Act decriminalizes 183 provisions across 42 Central Acts, which are administered by 19 Ministries/Departments. 
  • Enhanced Ease of Doing Business:The Act aims to simplify compliance for businesses by removing or modifying existing criminal penalties. 
  • Trust-Based Governance:By decriminalizing certain offenses, the Act seeks to foster a more trust-based environment for businesses. 
  • Pragmatic Penalties:The Act introduces mechanisms for adjudicating officers and appellate authorities, ensuring penalties are commensurate with the severity of the offense. 
  • Flexibility in Enforcement:The Act allows for compounding of certain offenses, providing an alternative to full-fledged prosecution. 
  • Focus on Specific Acts:The Act addresses provisions in various Acts, including those related to intellectual property, media, and other sectors. 

Drugs and Cosmetics Act, 1940 Amendment: The Drugs and Cosmetics Act, 1940 is one of the acts amended by the Jan Vishwas Act.

Implementation of Jan Vishwas Act’s Intent: The Drugs and Cosmetics (Compounding of Offences) Rules, 2025, can be seen as a mechanism to implement the changes brought about by the Jan Vishwas Act to the Drugs and Cosmetics Act, 1940. It provides the specific procedures and framework for how these offenses will be dealt with, in alignment with the intent of decriminalization and promoting ease of doing business.

Overall, the Jan Vishwas Act aims to create a more business-friendly and less punitive environment by decriminalizing certain offenses and rationalizing legal provisions across various sectors. 

Hence the new Rules on Compounding of Offences under Drugs & Cosmetics Act may have originated from the recent amendments made to Jan Vishwas (Amendment of Provisions) Act 2023.

In essence, the Jan Vishwas Act provides the legislative amendment to allow for decriminalization, and the Drugs and Cosmetics (Compounding of Offences) Rules, 2025, provides the procedural rules for implementing that change through compounding of offenses.

Click to read the Notification

Information Updates

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GRI Launches New Biodiversity Reporting Standard

The Global Reporting Initiative (GRI), one of the leading organizations promoting standardized ESG reporting releases updated Biodiversity Standard (GRI 101: 2024) to help companies disclose their biodiversity impacts and management measures.

This new standard provides a comprehensive framework for companies to report on their biodiversity impacts and take action to address them, contributing to a global effort to conserve and protect biodiversity.

Key Points:

  • New standard aligns with recent global biodiversity initiatives like Kunming-Montreal Framework and TNFD recommendations.
  • Enables reporting on:
    — Supply chain impacts
    — Location-specific impacts with detailed site information
    — Direct drivers of biodiversity loss (land use, climate change, etc.)
    — Impacts on society and human rights
    — Management of these impacts
  • Standard effective January 2026, early adopter pilot starting now.

Source:https://www.esgtoday.com/gri-launches-new-biodiversity-reporting-standard/

Source: https://www.esgtoday.com/

Holistic AI E-book

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The State of Global AI Regulations in 2024

The year 2022 was pivotal for artificial intelligence (AI), culminating in the emergence of ChatGPT and Microsoft’s subsequent discussions to invest $10 billion in OpenAI. With the AI market projected to grow to $500 billion in 2024, regulatory efforts have intensified in tandem with AI’s rapid adoption.

“The State of Global AI Regulations in 2024,”, a comprehensive guide released by Holistic AI ,sheds light on the following:
a. current state of the global AI landscape,
b. Key developments and anticipating trends in businesses
c. AI governance and its implications

Click here to read the AI Ebook

Source:https://www.holisticai.com/papers/the-state-of-ai-regulations-in-2024

Sustainability – Mega opportunity

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In sustainability, a mega opportunity for Indian banks

As India passes the reins of the G20, it has signalled an unwavering dedication to combating global environmental and sustainability challenges. The G20 sustainability working group meetings have spotlighted key pillars: harnessing climate finance, embracing the sustainability development goals (SDGs), and nurturing the financial ecosystem’s capacity.

In parallel, India’s nationally determined contribution commitments to reduce greenhouse gas emissions and the ambitious 2070 net zero emissions target unveil a grand vision of fortifying climate resilience and nurturing sustainable growth.

The big gap: funding the shift to a greener future

Nevertheless, there is a considerable gap between the financial requisites for these ambitions and the current landscape–making for a significant opportunity for India’s banking sector to tap into.

The G20 Leaders declaration underscores the importance of sustainable finance, highlighting needs like for developing countries, blended finance instruments, and reforming multilateral institutions.

Worldwide, banks are increasingly integrating sustainability into their operations. Many have committed substantial funds for sustainability and are transitioning away from fossil fuel financing. They’re also innovating with sustainable finance products like green bonds and leveraging technology for broader customer outreach and lower carbon footprints

While India’s banking sector has begun its ESG journey, it’s still navigating the challenges of balancing sustainability with developmental needs. Drawing from global trends and G20 insights, Indian banks can harness ESG for value creation. By integrating sustainability considerations and technology-driven decision-making, they can champion environmental and social transformation in India’s financial realm.

Indian banks have a pivotal role in driving social change, achieving national objectives, and expanding their lending portfolios.

Their success hinges on accessing global capital, innovating for new segments, and prioritizing digitalization and ESG integration in decision-making.

Achieving these objectives not only promises financial success but also positions Indian banks as leaders in the sustainability transition.

Click here to read the article

source: https://www.livemint.com/

SEBI – Regulatory Frame Work

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Sebi – Regulatory Framework for value chain ESG disclosures for listed entities

Sebi came out with a regulatory framework for listed entities on ESG disclosures on supply chain and assurance.

Sebi has introduced BRSR Core, a sub-set of the BRSR (Business Responsibility and Sustainability Report), comprising nine Key Performance Indicators (KPIs) for several E, S and G factors that need to be assured. Under the framework, large listed companies will have to make disclosures and obtain assurance as per ‘BRSR Core’ for their value chain.

Keeping in view the relevance to the Indian market context, few new KPIs have been identified for assurance such as job creation in small towns, openness of business and gross wages paid to women. Further, for better global comparability, intensity ratios based on revenue adjusted for purchasing power parity have been included.

In addition, the Securities and Exchange Board of India (Sebi) has introduced disclosures and assurance for the value chain of listed entities, as per the BRSR Core. In the supply chain, Sebi said that ESG disclosures according to the BRSR Core for the top 250 companies on a comply-or-explain basis will start from 2024-25, with assurance beginning the following year, according to a circular.

Disclosures for the value chain will be made by the listed company as per BRSR Core as part of its annual report. In this regard, the value chain would encompass the top upstream and downstream partners of a listed entity, cumulatively comprising 75 per cent of its purchases or sales by value, respectively.

As per Sebi, listed entities will have to report the KPIs in the BRSR Core for their value chain to the extent it is attributable to their business with that value chain partner. Such reporting may be segregated for upstream and downstream partners or can be reported on an aggregate basis. Sebi also said the board of the listed entity will have to ensure that the assurance provider of the BRSR Core has the necessary expertise for undertaking reasonable assurance. Further, the listed entity would have to ensure that there is no conflict of interest with the assurance provider appointed to assure the BRSR Core. For instance, it needs to be ensured that the assurance provider or any of its associates do not sell its products or provide any non-audit related service, including consulting services, to the listed entity or its group entities

Click here to View the SEBI Notification

Source: https://www.moneycontrol.com/news/business/sebi-puts-in-place-regulatory-framework-for-value-chain-esg-disclosures-for-listed-entities-10948501.html

Industry information update – ESG on construction industry

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ESG for transformational affordable housing

Environment, Social and Governance are the three facets that characterise sustainable responsible investing for any organisation.

The rise of ESG standards in construction industry is expected to create a resilient and successful marketplace with long-term benefits fo stakeholders through a coordinated attempt to reduce the negative impacts on the environment.

The ESG framework for construction projects is developed in similar lines to the green building certification requirements, making green buildings a subset of it. The following are the key ESG parameters considered for any construction project:

EnvironmentalSocialGovernance
Energy savings and carbon emissions offsetLabour health, safety and environmentEnforcement of labour laws
Waste and Water managementGender inclusion Awareness of staff welfare and benefits
Resource efficiency through reducing, reusing, and recyclingCommunity engagement and buyer satisfactionFair payment terms and company policies
Occupant well-being and indoor environment comfort  

ESG provides a holistic strategy to enable a builder to gain understanding on the negative environmental and social impacts of their housing projects. For example, construction waste generated on site must be segregated and disposed of in a responsible manner.

Additionally, safety signages should be displayed in the local language of the construction workforce and mandating usage of PPE for them

It also enables the typically first-generation developers in the affordable housing segment to strengthen their corporate governance policies. For example, maintaining regularised wages and working hours for construction workers on site. Provision of a creche facility at the construction site to educate the construction worker’s children along with enforcing relevant policies to strengthen the prohibition of child & forced labour practices.

Infusing the concepts of ESG to create best practices for the construction sector will further help in achieving India’s climate target to reduce Emissions Intensity of its GDP by 45 % by 2030. This will further be a small step towards achieving India’s long-term goal of reaching net zero by 2070.2

So far India’s climate mitigation actions have been mostly financed from domestic resources. However, to address the challenge of climate change and achieve the Nationally Determined Contributions (NDC), there is a need for new and tailor-made funding required. Such funding opportunities are now coming in form of green bonds and climate finance from Development Finance Institutions to Indian banks and NonBanking Financial Companies (NBFCs).

The role of ESG is crucial to achieve the targets under India’s Panchamrit plan. To achieve this, real estate investors and lending companies should ensure that financing is aligned with positive and measurable climate, social and environmental co-benefits

Source:https://bfsi.economictimes.indiatimes.com/news/nbfc/esg-for-transformational-affordable-housing/101451819

Industry Information Update – ESG

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ESGpedia registry ensures suppliers hold accredited ISO certifications, helping companies manage global supply chain sustainability

Asia’s leading environmental, social, and governance (‘ESG’) data and technology solutions company, STACS, announced that its platform ESGpedia can help corporates manage supply chain sustainability by ensuring that suppliers hold accredited ISO certifications. The latest progress involves collaboration with International Accreditation Forum’s (‘IAF’) global certificate database IAF CertSearch and Quality Trade.

Global leader in solar innovation and channels, Maxeon Solar Technologies (‘Maxeon’), is onboard as a corporate representative in the live use case, and is making further progress in its supplier sustainability monitoring using ESGpedia.

Maxeon first commenced utilising holistic data and digital solutions on STACS’s ESGpedia to monitor the sustainability performance of suppliers in Maxeon’s end-to-end supply chain last October 2022.

In the latest development, ESGpedia platform enables Maxeon to ensure that suppliers within its supply chain meet Maxeon’s corporate sustainability requirements of being ISO-compliant.

A company’s supply chain accounts for majority of its scope 3 emissions. With rising regulatory, consumer, and investor scrutiny, companies like Maxeon have implemented corporate sustainability measures to manage its supply chain sustainability and decarbonise – and this is where monitoring comes in place to ensure the success of these initiatives.

Lindsey Wiedmann, Chief Legal & Sustainability Officer at Maxeon, said: “As part of our company’s purpose of Powering Positive Change™, Maxeon screens suppliers carefully and requires them to be ISO-certified. The goal of our partnership with ESGpedia by STACS is to achieve a one-stop holistic view of all relevant ISO certificates of current suppliers in one portfolio on a single data registry.”

In the latest collaboration, ESGpedia connects directly with IAF CertSearch, powered by Quality Trade, to retrieve valid accredited ISO certificates. Validity of certificates is dependent on numerous factors such as expiry or any updates in the company’s sustainability commitment.

Established by the IAF, IAF CertSearch is a global database of 900,000+ verified and accredited ISO Certificates obtained from various accreditation and certification bodies. ESGpedia then harmonises the ISO certificates data into standardized company ESG profiles, and organises Maxeon’s current suppliers’ ESG profiles into a single portfolio for ease of verification and monitoring by Maxeon. Based on various factors, Maxeon is also able to gain full transparency of which suppliers across their entire supply chain hold valid accredited certifications and be alerted when there is a change to the status of any certification, helping Maxeon manage supply chain risk.  

Sharon Yuen, Chief Commercial Officer at STACS, said: “With ESGpedia, we support corporates’ net zero journey and help them manage their supply chain sustainability and scope 3 emissions, to stay ahead of regulations, future-proof, and strengthen their competitive edge. A digital solution is especially key for companies like Maxeon with more complex supply chains and regional suppliers. We are therefore delighted to be collaborating with International Accreditation Forum and Quality Trade, and furthering our partnership with corporates like Maxeon through ESGpedia, to help them ensure the overall green-ness of their supply chains.”

Emanuele Riva, Chair at International Accreditation Forum, said: “The IAF CertSearch database helps businesses, asset owners and regulators know exactly which organisations in their supply chains, portfolios and networks hold valid accredited certifications.”

Rajesh Maheshwari, IAF Database Management Committee Chair, said “There has never been a more important time to know your suppliers, customers, and investees meet international standards, particularly in the area of ESG. The database quells fears of greenwashing as it records and provides transparency of the validity of certifications.”

Nigel Johnston, Chief Executive Officer at Quality Trade, said: “Businesses, asset owners and regulators require swift and reliable exchange of information to operate in today’s digital environment. We look forward to working with STACS to ensure valid accredited certification information can be aggregated and easily accessed on ESGpedia, helping organisation such as Maxeon to achieve their sustainability goals.”

Earlier this year in May (23 May 2023), the latest ESGpedia platform version was launched at its one-year milestone since its deployment in May 2022, with greater data coverage, solutions and analytics, and the ESCAP Sustainable Business Network (‘ESBN’) Asia-Pacific Green Deal for Businesses digital assessment.

Available at no cost on ESGpedia, the digitalised and simplified self-assessment tool is designed to lower the barriers to entry for corporates and SMEs to kickstart their sustainability journey through a form of an easy and guided program towards sustainability, and to report metrics that are aligned with stakeholders’ needs for consistent, comparable, and shareable data.

This helps suppliers who have yet embarked on sustainability or any certifications to start easily with a simplified and guided program, to attain their ESBN Asia-Pacific Green Deal badge to showcase their sustainability commitment to corporates like Maxeon.

For further information, please contact:

STACS (www.stacs.io)
Grace Lim, Senior Marketing Manager
Email: grace.lim@stacs.io

Source: https://stacs.io/esgpedia-registry-ensures-suppliers-hold-accredited-iso-certifications-helping-companies-manage-global-supply-chain-sustainability/

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