2020 Sustainability
Reporting Trends
in South Asia

(Bangladesh, India, Sri Lanka)

Contents
Disclaimer...................................................................................................................................................................3
Methodology...............................................................................................................................................................4
Introduction.................................................................................................................................................................4
Objective.....................................................................................................................................................................4
Scope...........................................................................................................................................................................4
1. Sustainability reporting trends in South Asia.....................................................................................................5
1.1 Percentage of Reporting Organizations by Country (2019)...............................................................................5
1.2 Segregation of GRI / Non-GRI Reporting Organizations by Country (2019)......................................................6
1.3 Changes in Reporting Organizations by Country (2017-2019)..........................................................................7
1.4 Changes in GRI Reports by Country (2019)......................................................................................................7
2. Sustainability reporting trends in Bangladesh....................................................................................................8
2.1 Percentage of Reporting / Non-Reporting Organizations ..................................................................................8
2.2 Percentage of GRI/Non-GRI Reports.................................................................................................................9
2.3 Segregation of Reporting Organizations by Year...............................................................................................10
2.4 Segregation of GRI Reports by Year..................................................................................................................11
2.5 Segregation of Non GRI and IIRC Framework...................................................................................................11
2.6 Segregation of Reporting Organizations by Sector (2019).................................................................................12
2.7 Key Takeaways..................................................................................................................................................12
3. Sustainability reporting trends in India................................................................................................................13
3.1 Percentage of Reporting / Non-Reporting Organizations...................................................................................14
3.2 Percentage of GRI/Non-GRI Reports.................................................................................................................14
3.3 Segregation of Reporting Organizations by Year...............................................................................................15
3.4 Segregation of GRI Reports by Year..................................................................................................................15
3.5 Changes in BRR and IIRC Reports in India (2017-2019)...................................................................................16
3.6 Division of BRR and IIRC Reports.....................................................................................................................16
3.7 Changes in BRR and IIRC Reports in India by Sector ......................................................................................17
3.8 Sustainability reporting of constituent companies of the Nifty 50 index.............................................................17
3.9 Division of Reports by Framework (2019)..........................................................................................................18
3.10 Non Listed Companies and Trends (2019) ......................................................................................................18
3.11 Key Takeaways.................................................................................................................................................19
4. Sustainability reporting trends in Sri Lanka........................................................................................................20
4.1 Percentage of Reporting/Non Reporting Organizations.....................................................................................20
4.2 Percentage of GRI/Non-GRI Reports.................................................................................................................21
4.3 Segregation of Reporting Organizations by Year...............................................................................................21
4.4 Segregation of GRI Reports by Year..................................................................................................................22
4.5 Division of Non GRI Reports..............................................................................................................................22
4.6 Segregation of Reporting Organizations by Sector............................................................................................23
4.7 Key Takeaways..................................................................................................................................................23
Conclusions................................................................................................................................................................24

Disclaimer

The research presented in this report was conducted internally by
the Global Reporting Initiative’s (GRI) South Asia Regional Hub. This
report is an extension to the OECD Report Collection, which involves
carrying out a series of tasks to increase the value of GRI Sustainability
Disclosure Database (SDD) for external and internal, current andfuture users. The analysis presented in the report aims to determine
the linkage and impact of environmental regulations on sustainability
reporting by evaluating the public listed companies’ reporting trends
in South Asia in the 2014 - 2019 period - specifically looking at theyear 2019. The following applies to all data related to the number ofsustainability reports. The data available in the database is collected by
GRI in collaboration with its data partners and consultants, and captures
all knows reports.
The term ‘GRI reports’ refers to reports that use the GRI Sustainability
Reporting Framework and have a GRI Content Index (report types: G3,
G3.1, and G4). The ‘back-end’ refers to reports which are currently being
processed by the GRI Services team and are not publicly available on
the SDD.

3

Introduction

This report aims to contribute to GRI Sustainability Disclosure Database(SDD) through research and data analysis of the South Asia country
members (Bangladesh, India and Sri Lanka) for internal and external
use - both current and future. This exercise contributes to GRI’s datacollection related to its Theory of Change and to wider organizationaltargets ahead of 2025.

Objective

To analyze to what extend various guidelines and reporting frameworks
are being taken up by organizations in target countries; identify thosethat do not report and understand what prevents them from reporting;find further opportunities for development in those sectors that lack thereporting know-how.
To update the GRI Sustainability Disclosure Database (SDD) and andprovide an analysis of sustainability reporting trends in the region; toincrease awareness of the reporting environment in each country fortargeted outreach; to find sustainability reporting trends in selecteddeveloped countries and identify variables for further expansion anddevelopment of the reporting landscape.

Scope

01

02

Methodology

Indentifying
data gaps

Developed a list of all
publicly listed and nonlisted companies in
the focus countries
and compared this list
with those already in
the SDD.

4

The report collection exercise included the following 3 countries:
Bangladesh, Sri Lanka and India.The collection of new reports involved
only publicly listed companies in Sri Lanka and Bangladesh, and nonlisted companies in India for the year of 2019. The reports collected aremainly for the year of 2019, with references to data collected between
2013-2018. GRI reports include all reports that use the GRI Framework,i.e., annual reports, sustainability reports, integrated reports, etc. Non
GRI reports include reports that do not use the GRI Framework (annual
reports, sustainability reports, etc.).

Datacollection

Primary reports fromeach company, notpresent in the SDD
were collected via
their company
websites.

03
Dataanalysis04

Eachannual/sustainability
report was further
analyzed andregistered in the
database as GRI/
Non-GRI reporting
framework.

05
Data
updates

Data collected was
updated in the
Amsterdam office forfurther classifications
and checks before
being included in
SDD.

Data
uploadData was thenuploaded to SDD toprovide for a real-timedata for country
managers as well asother implementers forinternal and external,
current and future use.

01

Sustainability reporting trends inSouth Asia
1.1 Percentage of Reporting Organizations by Country (2019)
1%
(5)

100%

Reporting
Organizations
Non-Reporting
Organizations

90%
80%

55%
(154)

70%
60%

85%
(271)

50%

99%
(498)

40%
30%

45%
(130)

20%
10%
0%

15%
(49)

Bangladesh
320 Organizations

India
503 Organizations

Sri Lanka
284 Organizations

Findings
The above graph shows the distribution between the reporting and non-reporting organizations in
the three countries for the year 2019. Data includes listed organizations only. We have used Top
500 BSE organizations and five organizations from our partners’ data. As of 2019, a total number oforganizations included in the Colombo Stock Exchange (CSE) and the Dhaka Stock Exchange (DSE)
is 284 and 320 respectively.
The importance of Sustainability Reporting in South Asia1
South Asian countries face numerous ecological and societal issues. Sustainability reporting is an
important tool through which companies can demonstrate that they are doing well and address thesesocietal and environmental issues. Therefore, the importance of sustainability reporting in South Asian
countries is higher compared to countries that are faced with less critical issues - both socially andenvironmentally.

1 https://www.researchgate.net/publication/327848240_Patterns_of_Sustainability_Reporting_in_South_Asia_
Zeeshan_Iqbal

5

SEBI Mandates Business Responsibility Report for the Top 1000 Listed Companies2
One possible reason for India’s high percentage of reporting organizations could be the decision takenby the Securities and Exchange Board of India (SEBI) to mandate the annual Business Responsibility
Report (BRR) for the top 1000 listed companies. As of now, only the top 500 companies are required
to prepare the BRRs. The companies’ ranking is based on the market capitalization in the Bombay
Stock Exchange (BSE) and the National Stock Exchange (NSE). This decision has been made toensure transparency in the environment-related activities and to improve listed companies’ compliancewith the corporate governance norms. The top 1000 listed companies will be based on the market
capitalisation at the end of every financial year, i.e. March.

1.2 Segregation of GRI / Non-GRI Reporting Organizations by Country(2019)
Bangladesh
22% (11)49 Reporting
Organizations

78% (38)

India
15% (74)498 Reporting
Organizations

85% (424)

Sri Lanka
64% (83)

36% (47)

130 Reporting
Organizations

GRI Reports
Non-GRI Reports

Findings
The graph shows the segregation of reporting organizations on the basis of the type of reporting doneby listed companies (GRI/Non GRI). India has the highest number of reporting companies (498) inthe given period. Sri Lanka has the highest percentage (64%) of GRI reports, followed by Bangladesh(22%) and India (15%)

GRI South Asia Charter on Sustainability Imperatives3
Held virtually in July 2020, the GRI South Asia Regional Summit focused on
the post COVID-19 economic recovery and how it could enable a sustainability
transformation in the region. A new Charter on Sustainability Imperatives - one of
the Summit’s outcomes - commits to a decade of action in the region to ensurethat the Sustainable Development Goals (SDGs) are reached on time

Milestone reached asorganizations commit to
support the SDGs
2
3

6

https://news.cleartax.in/sebi-mandates-br-report-for-top-1000-listed-companies/
https://www.globalreporting.org/about-gri/news-center/2020-08-24-charter-for-sustainability-action-in-south-asia/

1.3 Changes in Reporting Organizations by Country (2017-2019)13% 0%
493
498(99%) (99%)

No. of Reporting Organizations

500

400

2019
2018
2017

Findings
The graph shows the change inpercentage of reporting organizationsin the 2018-2019 period. India
experienced the biggest change(+13%) overall, followed by Sri
Lanka (+8%) and Bangladesh (+5%).
Bangladesh experienced a 5%change in companies disclosing the
ESG information from 2017 to 2019.

425
(86%)

300

200

100

109
(37%)

4%

4%
4%
130
121
(45%)
(41%)

1%
49
36
(15%)
31
(10%) (11%)

0Bangladesh

India

Sri Lanka

1.4 Changes in GRI Reports by Country (2019)
GRI Reports in 2019
GRI Reports in 2018
GRI Reports in 2017

Bangladesh

22% (11/49)
30% (11/36)
45% (14/31)

India

15% (74/498)
13% (64/493)
16% (67/425)

Sri Lanka

64% (83/130)
63% (77/121)
66% (73/109)% of GRI Reports(GRI Reports/No. of Reporting Organization)

Findings
A bar chart above shows the percentage of reporting organizations that used the GRI Standards in
2019. All three countries experienced a drop in the number of GRI reports in 2018, but the number
grew again in 2019 - except of Bangladesh, which may be linked to the transition from Guidelines toStandards.

7

02

Sustainability reporting trends in
Bangladesh

•
•
•
•
•
•
•

Stock Exchange: The Dhaka Stock Exchange (DSE)
Total Number of Publicly Listed Organizations: 320
Number of Companies Present in the Sustainable Disclosure Database (SDD): 45
Number of Recurring Organizations (2019): 46
Sample Size Taken for Research: 320
Percentage of Reporting Organizations (2019): 15% or 49 organizations
Percentage of Reporting Organizations using the GRI framework (2019): 22% or 11 out of 49

2.1 Percentage of Reporting / Non-Reporting Organizations
Total Organizations (2019) = 320

15% (49)85% (271)

Reporting Organization
Non-Reporting Organization

8

Findings
The pie chart shows the segregation of Reporting
and Non-Reporting organizations in the 2014-2019
period. The reports are tracked and updated in
the database only if an organization mentions its
commitments and actions taken on sustainability in
its annual and/or separately published sustainability
report, which shows concrete actions taken andtargets achieved in relation to the environment,
the economy, and society more broadly. 15% oforganizations - or 49 out of 320 - have reported atleast once in the determined period.

2.2 Percentage of GRI/Non-GRI Reports
Reporting Organizations (2019) = 49

22% (11)78% (38)

Findings
The pie chart shows the segregation of Reporting
and Non-Reporting organizations in the 2014-2019
period. The reports are tracked and updated in
the database only if an organization mentions its
commitments and actions taken on sustainability in
its annual and/or separately published sustainability
report, which shows concrete actions taken andtargets achieved in relation to the environment,
the economy, and society more broadly. 22% oforganizations - or 11 out of 49 - have reported inaccordance with the GRI framework.

GRI Reports
Non-GRI Reports

Mandates for Sustainability Reporting in Bangladesh’s Banking Sector (2020)4
To attain the global targets set through the Paris Agreement and the broader United Nations
Sustainable Development Goals, the Bangladesh Bank (BB) has kicked off its Sustainable Finance
Policy initiative in December 2020. The idea behind this initiative is for the financial sector (Banks &Fls), being an important economic player, to make appropriate contribution to sustainability.
As a pioneering financial regulatory body, the Bangladesh Bank has been addressing sustainability
issues in its policies and regulations, guiding other banks and financial institutions to accommodate
the Environmental, Social and Governance (ESG) issues in their portfolio and the credit / investment
management. The government’s development plans and commitment to sustainability together with
the Bangladesh Bank’s strategic goals are the major drivers that help shape a comprehensive policy
for sustainable finance led by the Sustainable Finance Department of the Bangladesh Bank.

4https://www.bb.org.bd/mediaroom/circulars/gbcrd/dec312020sfd05.pdf

9

2.3 Segregation of Reporting Organizations by Year
Total Organizations (2019) = 320* 2019 reports are projected as of April 2020

Reporting Organizations
36%
49

No. of Reporting Organizations

50

40
36
31

30

20

20

17
12

10

0

08

2013

2014

2015

2016

2017

2018

2019*

Findings
The bar graph above shows the number of reporting organizations by year.
The number of reporting organizations in Bangladesh has increased by more than 100% between
2016 and 2019, growing from 20 to 49.
WIth the recent collaboration between GRI and Dhaka Stock Exchange, efforts are being made tofurther increase the number of sustainability reports. Subsequent engagement with listed companies
shows greater awareness of sustainability reporting and the GRI Standards

102.4 Segregation of GRI Reports by Year
Total Reporting Organizations (2019) = 49
* 2019 reports are projected as of April 2020

GRI Reports
Non-GRI Reports
49

No. of GRI/Non-GRI Reports

50

40
36
31

30

08
04

0

25

17
12

10

17

20

20

38

09

13
0%

08

04

04

2013

2014

14
08

07

2015

2016

2017

11

11

2018

2019*

Findings
The graph represents the segregation of GRI and Non-GRI reports by year. The 2013 - 2015 period
saw a 100% in the number of GRI reports. The number of reports dropped in 2016, but the following
year saw a 100% increase - possibly because of the introduction of the GRI Standards. The numberof GRI reports saw a decrease in the 2017 - 2019 period, which can be linked to the transition from
Guidelines to Standards.

2.5 Segregation of Non GRI and IIRC Framework
Segregation of
Non GRI Reports (2019)

Segregationof IIRC Reports (2019)

GRI Reports
Standalone IIRC
Annual Report with ESG information
IIRC
ESMS

Findings
The pie chart illustrates the Non
GRI framework for companies
in Bangladesh in 2019. There
are three Non GRI frameworks
that companies follow: theEnvironmental and Social
Management System (ESMS),
the Independently Audited
Report, and the IIRC framework.
We see that most companies
apply the Independently Audited
Reporting framework (27).
Most of the IIRC reports also
have the GRI framework - 9 outof 11 - hence these are counted
as GRI reports.

11

2.6 Segregation of Reporting Organizations by Sector (2019)
No. of Organizations
Financial Services
Manufacturing
Other

SectorTextilesPharmaceuticalUtilities
Construction Material
Chemical
F&B
Oil & Gas
Reporting organization
Non-reporting organization

Automobiles
IT
0

20

40

60

80

100

Findings
The graph represents the division of organizations by sector. The Financial sector has the highest
number of reporting organizations (35), followed by Manufacturing (4), Other (4), and Textiles (2).
Companies that report the least are from IT, Automobile, F&B and Chemical sectors - with zero
reports.

2.7 Key Takeaways•••

Bangladesh had the lowest percentage of reporting organizations (15%) in 2019••

The number of GRI Reports has increased by 250% in the 2013-2017 period.

The 2017 - 2019 period saw a 58% change in the number of reporting organizations.
Outside the GRI framework, the majority of companies follow the Independently Audited and
ESMS and IIRC frameworks.
When it comes to sustainability reporting, the Financial sector has the highest number of reportingorganizations (101), followed by the Manufacturing (65) and Textiles (38) sectors.

Since 2018, the Dhaka Stock Exchange (DSE) and GRI have been working closely to create a
conducive environment for publicly listed companies to report on their impacts. DSE has also
published the Environmental, Social and Governance (ESG) guidance document titled ‘Guidance
for sustainability reporting for listed companies in Bangladesh’ with technical input from GRI. The
Government of Bangladesh5 as well as Bangladesh Bank should come forward and encouragesustainable disclosure practices in the country in accordance with the GRI index. A supervisory board
for regular and proper monitoring of sustainability reporting and its application could be formed.
To standardize sustainability reporting, there is a need to raise awareness of the importance ofsustainability disclosure among investors and customers.

512

http://www.icmab.org.bd/wp-content/uploads/2019/12/5-Sustainability-Reporting.pdf

03

Sustainability reporting trends in
India

•
•
•
•
•
•
•

Stock Exchange: The Bombay Stock Exchange (BSE)
Total Number of Publicly Listed Organizations: 5500
Number of Companies Present in the Sustainable Disclosure Database (SDD): 422
Number of Recurring Organizations (2019): 461
Sample Size Taken for Research: 503
Percentage of Reporting Organizations (2019): 99% or 498 organizations
Percentage of Reporting Organizations using the GRI framework (2019): 15% or 74 out of 498

Evolution of Business Responsibility Reporting in India6
1. In 2009, the Corporate Voluntary Guidelines were set.
2. By 2011, India has endorsed the United Nations Guiding Principles on Business and Human Rights.
3. Also in 2011, MCA issued National Voluntary Guidelines on Social, Environmental and Economical
Responsibilities of Business, which encourage ESG reporting.
4. In 2012, SEBI issued a mandate for Top 100 listed companies by market capitalization to file theBusiness Responsibility Reports (BRR) based on NVGs.
5. In 2015, SEBI extended BRR reporting to Top 500 companies by market capitalization.
6. In 2019, the National Guidelines on Responsible Business Conduct (NGRBS) were released.
Over 60% of the Indian reporting provisions are mandatory7. Specifically, 17 of the 18 reporting
requirements outlined in the Reporting Exchange have a mandatory obligation for disclosure. However,there is no requirement for companies in India to report on any instances of non-compliance. Almost
a quarter of the reporting provisions advocate the disclosure of ESG data through mainstream annual
reports, bringing corporate sustainability to the attention of the investor community. These provisions
advocate wide forms of disclosure and touch on various ESG topics.

6 https://taxguru.in/sebi/amendment-business-responsibility-reporting-brr.html#:~:text=SEBI%20mandates%20
top%20100%20listed,(NGRBC)%20released%20in%202019.
7 https://www.cdsb.net/sites/default/files/sustainability_india_report_web.pdf

13

3.1 Percentage of Reporting / Non-Reporting Organizations
Total organizations (2019) = 498
05 (01%)493 (99%)

Findings
The pie chart shows the segregation ofReporting and Non-Reporting organizations
for the year 2014-2019. The reports aretracked and updated in the database only if anorganization mentions its commitments andactions taken on sustainability in its annual and/or separately published sustainability report,
which shows concrete actions taken andtargets achieved in relation to the environment,
the economy, and society more broadly. 99%
of organizations - or 493 out of 498 - havereported at least once in the determined period.

Reporting organization
Non-reporting organization

3.2 Percentage of GRI/Non-GRI Reports
Total organizations (2019) = 493

69 (15%)424 (85%)

GRI Report
Non-GRI Report

14

Findings
The pie chart shows the segregation of thereporting organizations by reporting frameworks
in the 2014-2019 period. GRI Reports include
all reports that use the GRI framework, i.e.,sustainability and integrated reports. Non GRI
reports include reports that do not use the GRI
framework or cite GRI, and may include annual,sustainability and integrated reports. 15% - or
69 out of 493 reporting organizations - havereported at least once in accordance with the
GRI framework in the determined period.

3.3 Segregation of Reporting Organizations by Year
Total Organizations (2019) = 498* 2019 reports projected as of April 2020

Reporting Organizations
1%

No. of Reporting Organization

500

493

498

2018

2019*

425
400

300

200
151
100

0

98

74

87

2013

2014

2015

2016

2017

Findings
The bar graph represents the number of reporting organizations by year. The number of reportingorganizations has increased by more than 180% from 2016 to 2017 - possibly because of the
new rules which mandated Top 500 listed companies to disclose ESG information. There was nodifference in the number of reporting organizations in the 2018-2019 period.

3.4 Segregation of GRI Reports by YearGRI Reports
Non-GRI Reports

Total Reporting Organizations (2019) = 69
* Reports for 2019 is projected as of April 2020

No. of GRI/Non-GRI Reports

500

400

300
429

424

363
200

09
100
18
0

20

81

18

08%

56

67

80

75

62

64

74

2013

2014

2015

2016

2017

2018

2019*

Findings
The graph represents the segregation of GRI and Non-GRI reports by year. There has been a
43% increase in the number of GRI reports from 2013 to 2015. Then, the number has decreased
substantially by 2017 to then increase again in 2019 - possibly because of new SEBI rules to file BRR
reports for Top 500 companies.
* https://economictimes.indiatimes.com/markets/stocks/news/business-responsibility-reports-must-for-top-500-listedcompanies/articleshow/50311364.cms?from=mdr

15

3.5 Changes in BRR and IIRC Reports in India (2017-2019)

BRR

426

2.5%
15%

370

Integrated reportframework

Type or reporting framework

437

16

1%

18

50%

2019
2018
2017

12
0

100

200

300

400

Findings
The bar graph illustrates changes in Business Responsibility Reports (BRR) and International
Integrated Reporting Framework (IIRC) in the 2017-2019 period. It is possible to see a steadyincrease in BRR and a decrease in IIRC reports.
Since SEBI made the decision to mandate the annual business responsibility report and coveractivities related to the environment and stakeholder relationships to the Top 1000 listed companies,
the rise in BRR reports is expected to follow.

3.6 Division of BRR and IIRC Reports
Segregation of BRR (2019)

Segregation of IIRC (2019)69 (15%)07 (44%)09 (56%)384 (85%)

GRI Reports
Non-GRI Reports

GRI Reports
Non-GRI Reports

Findings
The pie chart shows the division of BRR and IIRC framework by GRI and Non GRI reports in 2019.
While the majority of BRR reports (86%) are Non GRI reports, more than half of IIRC reports are GRI
reports. BRR remains the most prevalent form of disclosing ESG information (75%), followed by GRI(15%), Independent Audited Reports (9%) and IIRC (1%). GRI reports include all reports that use the
GRI framework (annual / sustainability / integrated), and Non GRI reports include those reports thatneither use the GRI Framework nor cite GRI (annual / sustainability / integrated).

16

3.7 Changes in BRR and IIRC Reports in India by Sector
No. of Organizations
Manufacturing
Other
Financial
ChemicalPharmaceutical

SectorUtilities
Construction
Conglomerate
IT
F&B
Technology
Healthcare
Engineering
MiningConsumer goods

Reporting organizations
Non-reporting organizations

Automobile
Logistics
0

10

20

30

40

50

60

70

80

90

Findings
The graph illustrates the division of organizations by sector. The Manufacturing sector has the highest
number of reporting organizations (72), followed by Financial (63), Other (61), and Pharmaceutical (26)sectors. The lowest numbers are in Logistics (5) and IT (2).

3.8 Sustainability reporting of constituent companies of the Nifty 50
index
Nifty 5001(2%)

Segregation ofReporting Frameworks

Segregation of
IIRC Framework

03 (28%)12 (24%)23 (62%)14 (38%)
11 (72%)37 (74%)Companies with public reportCompanies not reviewed
Not available

GRI Reports
IIRC Reports

GRI Reports
Standalone IIRC

Findings• 92% - or 34 out of 37 reports - use the GRI Standards• This report has a limited scope, but it is an important first step to improve the information onsustainable enterprises. Its purpose is to provide a brief summary of sustainability reporting
initiatives taken by the NIFTY50 companies and benchmark them against the best practiceguidelines provided by the World Business Council for Sustainable Development (WBCSD).
Furthermore, the team has also developed and used an evaluation framework based on the
sector-specific knowledge and expertise.

17

3.9 Division of Reports by Framework (2019)
Total organizations (2019) = 503
Standalone BRR
GRI
Not ReportingStandalone IIRC
Independent annual reportwith CSR activities

384 (76%)

74 (15%)37 (7%)
6 (1%)
5 (1%)

Findings
The pie chart illustrates the division of reports by framework in 2019. The BRR remains thedominant framework. Companies did also disclose ESG information through a CSR report - this is inaccordance with the Companies Act 2013.

3.10 Non Listed Companies and Trends (2019)
Segregation by listed andnon-listed companies
ListedNon-listed

Segregation by reporting andnon-reporting companies
ReportingNon-reporting

5

0

503

5

Segregation by GRI and
Non GRI reports
GRI
Non-GRI

Segregation by GRI Frameworks
GRI Standards
G4
GRI Citation

3

1

1

Findings
The above pie charts provide an illustration of 2019 trends observed in non-listed companies. Our
partners provided the data on five companies, all of which are reporting companies. Furthermore, allfive companies use the GRI framework - three out of five use the GRI Standards, and other two theG4 framework and GRI Citation respectively.

18

3.11 Key Takeaways• Although India has a high percentage of reporting organizations - 99% as

observed in 2019 - the percentage of those that use the GRI framework is thelowest among three countries, standing at 15% as of 2019.

• The 2018 - 2019 period saw an increase in the number of BRR reports as well asreports that use the GRI framework, and a decrease in IIRC framework.

• The 2018 - 2019 period also saw a 1% increase in organizations that undertake
sustainability reporting.

• 13% of BRR reports follow the GRI guidelines, and nine out of 16 IIRC frameworks
apply GRI citation.

The GRI linkage documents are designed to help organizations fulfill multiple reporting requirements. The
GRI Standards and SEBI BRR Framework linkage document aims to help companies understand how therequirements in the SEBI BRR Framework are connected to the GRI Standards. The information provided
allows companies to prepare a sustainability report based on the GRI Standards and, at the same time,comply with the SEBI BRR Framework.
By making use of both the GRI Standards and the SEBI BRR Framework, a company can meet a growing
demand for sustainability information, increase transparency, and build trust and stronger relationships with
its stakeholders.

19

04

Sustainability reporting trends in
Sri Lanka

•
•
•
•
•
•
•

Stock Exchange: The Colombo Stock Exchange (CSE)
Total Number of Publicly Listed Organizations: 284
Number of Companies Present in the Sustainable Disclosure Database (SDD): 130
Number of Recurring Organizations (2019): 122
Sample Size Taken for Research: 284
Percentage of Reporting Organizations (2019): 45% or 130 organizations
Percentage of Reporting Organizations using the GRI framework (2019): 64% or 83 out of 130

4.1 Percentage of Reporting/Non Reporting Organizations
Total organizations (2019) = 284

130 (45%)154 (55%)

Reporting organizations
Non-Reporting organizations

20

Findings
The pie chart shows the segregation ofReporting and Non Reporting organizationsin the 2014 - 2019 period. The reports aretracked and updated in the database only if anorganization mentions its commitments andactions taken on sustainability in its annual and/or separately published sustainability report,
which shows concrete actions taken and targets
achieved in relation to the environment, theeconomy, and society more broadly. 55% - or
130 out of 284 organizations - have reported atleast once in the determined period.

4.2 Percentage of GRI/Non-GRI Reports
Total organizations (2019) = 130

Findings
The pie chart shows the segregation of thereporting organizations by reporting frameworks
in the 2014-2019 period. GRI Reports include
all reports that use the GRI framework, i.e.,sustainability and integrated reports. Non GRI
reports include reports that do not use the GRI
framework or cite GRI, and may include annual,sustainability and integrated reports. 64% - or
83 out of 130 reporting organizations - havereported at least once in accordance with the
GRI framework in the determined period.

47 (36%)83 (64%)

GRI Reports
Non-GRI Reports

4.3 Segregation of Reporting Organizations by Year
Total Organizations (2019) = 284* 2019 reports projected as of April 2020

Reporting Organizations

140
7.5%
130
121

120
107

No. of Reporting Organizations

100

93

79

80

60

54

40
28
20

0

2013

2014

2015

2016

2017

2018

2019*

Findings
The bar graph represents the number of reporting organizations by year. The number of reportingorganizations has increased by more than 140% in the 2014 - 2019 period, from 54 to 130
organizations. The joint work and efforts of GRI and the Colombo Stock Exchange (CSE) seek toincrease the number of sustainability reports produced in Sri Lanka.

21

4.4 Segregation of GRI Reports by Year
Total Reporting Organizations (2019) = 130* 2019 reports projected as of April 2020

GRI Reports
Non-GRI Reports

140

120

47
100

44

No. of GRI/Non-GRI Reports

36
07%

80

53
60
48

40

20

29

73

15
25

31

83

77

40

13
0

2013

2014

2015

2016

2017

2018

2019*

Findings
The graph illustrates the segregation of GRI and Non GRI reports by year. The 2013 - 2019 period
saw a 500% increase in GRI reports produced. The 100% jump in number of GRI reports from2016 to 2019 can be partially attributed to the introduction of the GRI Standards. While there are
no regulations currently in place that require companies to incorporate sustainability reporting into
their operations, the 2013 Voluntary Code of Best Practice on Corporate Governance, issued by
the Securities and Exchange Commission of Sri Lanka and the Institute of Chartered Accountants,
requires disclosure on sustainability.

4.5 Division of Non GRI Reports
Segregation of reporting frameworks
IIRC
Annual report with ESG info

Segregation of IIRC framework

59
30

76

10
7

GRI Reports
Annual integrated reports
Standalone IIRC

Findings
The above pie charts illustrate the division of Non GRI frameworks in Sri Lanka in 2019. The IIRC
framework remains the most popular Non GRI framework.
Out of 76 IIRC reports, 78% (59) include GRI reference reports and as such are registered as
GRI reports. 13% of reports cite the IIRC framework and are categorized as the Annual Integrated
Reports. 9% are standalone IIRC reports.

22

No. of Organizations

4.6 Segregation of Reporting Organizations by Sector

Financial
Manufacturing
Manufacturing
Other
Agro

SectorF&B
Real Estate
Healthcare
Utilities
Conglomerate
Construction
ChemicalReporting organizations
Non-reporting organizations

Automobile
Printing
0

10

20

30

40

50

60

70

80

90

Findings
The graph represents the division of organizations by sector. The Financial sector has the highest
number of reporting organizations (40), followed by Agro (17), Other (15) and Manufacturing(15) sectors. Sectors that see very limited number of reports from companies are Printing andConstruction (2), and Automobile and Chemical (3).

4.7 Key Takeaways
Sri Lanka’s commendable SR journey8•

In Sri Lanka, most corporate governance practices are based on the British practices andare largely recommended through voluntary codes. The codification of Sri Lanka’s corporate
governance practices was commenced by the Institute of Chartered Accountants of Sri Lanka(ICASL). Their first code related to the financial aspects of corporate governance was released in
2003. In 2008, a code of best practices was developed by ICASL together with the Securities andExchange Commission, and was further revised in 2013 and 2017. The latter revision of the code
focused on emerging challenges and a greater importance of the capital market in Sri Lanka.

•

The Colombo Stock Exchange (CSE) has received an International Standards of Accounting andReporting award (ISAR) 2020. The award was presented in recognition of CSE’s engagement with
GRI in driving corporate transparency in Sri Lanka and promoting sustainability reporting among
listed companies through a series of workshops, events and roundtables, as well as the publicationof ESG Guidance document for listed companies.

•

Through a series of engagement initiatives, CSE and GRI have helped listed companies in Sri
Lanka discover the business case for sustainability reporting. This collaboration made it possible
for CSE to deliver internationally renowned ESG reporting expertise and know-how to those
involved in the preparation of financial reports.

8

https://ro.uow.edu.au/cgi/viewcontent.cgi?referer=&httpsredir=1&article=4678&context=theses

23

05

Conclusions

24•

India takes the lead in the total number of sustainability reports, whereas Sri Lanka has the highest
number of GRI reports.

•

Bangladesh had the highest percent change in the number of sustainability reports in the 2018 - 2019
period, whereas Sri Lanka had the highest percent change in the number of GRI reports during thesame period.

•

Sri Lanka is the only country experiencing a steady increase in the number of GRI reports produced.
At the same time, the number of sustainability reports in all three countries follows a linear growthtrajectory.

•

The GRI framework is the most widely used for Environmental, Social and Governance (ESG)
reporting across all countries.

•

The BRR and IIRC frameworks are the most popular frameworks in all three countries.

•

According to the State of ESG report in India, 92% - or 35 out of 37 reports - use the GRI Standards.

•

Sri Lanka has the highest number of IIRC reports.

•

The Financial and Manufacturing sectors are the most prominent in terms of the number of reporting
companies in all three countries.

This publication has been funded by the AustralianGovernment through the Department of Foreign Affairs
and Trade and the Government of Sweden. The views
expressed in this publication are the author’s alone
and are not necessarily the views of the AustralianGovernment nor the Government of Sweden.
GRI would like to thank the Department of Foreign Affairs
and Trade (DFAT) of the Australian Government and theGovernment of Sweden for funding this project.

For more information:
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Barbara Strozzilaan 336
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