Webinar on Social Auditor’s Certification

Unlocking Opportunities: NISM XXIII – Social Auditors Certification Webinar

Discover the potential of becoming a Social Auditor with the newly launched NISM XXIII: Social Auditors Certification Examination. In her 2019 Budget Speech, Finance Minister Nirmala Seetharaman announced the launch of the Social Stock Exchange in India. 

Building on that, SEBI issued ICDR, LODR & AIF regulations through gazette notifications in July 2022. NSE and BSE have already introduced dedicated social stock exchange segments on their platforms.

Under the aegis of The Institute of Chartered Accountants (ICAI), the Institute of Social Auditors of India (ISAI) has been established (https://isai.ca.in/ ) as a Self-Regulatory Organization (SRO).

ISAI will play a crucial role in enrolling, regulating, and developing Social Auditors.

To explore the opportunities and significance of this certification in shaping the future of Social Auditing, please register yourself for the Webinar.

Date and Time : Sat, Jul 22, 2:30 PM – 4:00 PM GMT+5:30

Mode : Online event

SEBI – Regulatory Frame Work

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

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

Social Audit Standards issued by ICAI

Exposure Draft on Compendium of Social Audit Standards issued by ICAI

In order to regulate the profession of Social auditors, the Sustainability Reporting Standards Board of ICAI has developed the draft preface to the social audit standards as specified in the notification dated July 25, 2022 issued by SEBI .

“Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2022” dated July 25, 2022, has been issued in The Gazette of India regarding formation of Social Stock Exchange . The notification defines Social Stock Exchange as “A separate segment of a recognized stock exchange having nationwide trading terminals permitted to register Not for Profit Organizations and/ or list the securities issued by Not-for-Profit Organizations in accordance with provisions of these regulations.”

As per the above notification, The Institute of Chartered Accountants of India (ICAI) has been entrusted with the responsibility of being Self- Regulatory Organization for regulating the profession of Social auditors

In this regard, Sustainability Reporting Standards Board of ICAI has developed following :

• (i) Draft Preface to the Social Audit Standards
• (ii) Draft Framework for the Social Audit Standards
• (iii) Draft Social Audit Standards (SAS) on all the sixteen thematic areas specified in the above mentioned notification.

The downloadable version of the Exposure Draft is available at: https://resource.cdn.icai.org/71191srsb57193.pdf
Comments on this exposure draft are sought by ICAI latest by August 26, 2022

  1. Electronically Click on https://forms.gle/eFUnUZcXFzJzyCRC7 to submit comment online (Preferred method)
  2. Email: Comments can be sent to: sustainability2022@icai.in

Source: https://www.icai.org/post/srsb-ed-compendium-of-social-audit-standards-for-comments