Social Audit

  .                                                                      * BIRENDRA  K  JHA  Now entire banking industries in India with effect from 1st June  2023 are binded by the Reserve Bank of India guideline for mandatory audit by the Social Auditor for conducting the "Social Impact Assessment Audit" under para C clause 5 (iii) and para E, for raising "Green Capital". The RBI Guideline "Framework for Acceptance of Green Deposits" gives under Para Clause 2 standard "definitions". This "definitions" say further in the guideline:  "All other expressions unless defined herein shall have the same meaning as have been assigned to them under  any statutory modification or re-enactment  thereto or as used in commercial parlance, as the case may be".   The "Social Impact Assessment" and "Social Impact Assessor" are not defined in the RBI Guideline  Para Clause 2,  the RBI Guideline connects automatically w

                                                        * BIRENDRA K JHA Most of the ESG Auditors,  have no idea, how  carbon emission is audited, which is  accounted from the human resources. Carbon dioxide (CO2) and methane (CH4) are the potent greenhouse gases in the atmosphere. They have large impacts on Earth's radiative forcing and climate. The role of human metabolic emissions has received zero attention throughout the world by the ESG Auditors as well as in the carbon emission control policy.     However, in standard laboratory experiments conducted at Europe, this has widely been demonstrated that in a controlled environmental conditions in a climate chamber, the metabolic emissions from humans play an increasing role in regional and global warming. The average human exhales about 2.3 pounds of carbon dioxide on an average day. This is 840 pound per year or  0.42 ton per year of carbon dioxide.  In this way, any company with total human force of 5000 employees,  shall  exh

  Once 2024 approaches, most of the Indian Companies who have Europe oriented business, shall loose export potential, if not changing to the European Union ESG practices. Other companies are also synchronizing with the ESG Practices including India through the SEBI.  In India no one can say HR Practices are very strong. There are many loopholes and poor practices which impacts workforce. In Axis Bank women's attrition rate is very high.  The Axis Bank has failed in controlling the visual complains on sexual harassment cases against the women employees. In this circumstances if HR and company claims to give women empowerment. This is nothing but an eyewash and greenwash. This is not only the story of the Axis Bank.  But many other companies in India  are adopting the short cut and hanky-panky poor HR practices for cost cutting and easy gateway to the capitalism approach. For them the ESG is burden. But, if such companies  are doing export in any European Union countries, now they sh

Indian Companies whose export markets are European Union should must be alert. The EU has introduced tough law on the ESG Compliance. Current Indian exporters with  $1.3 billion annually, shall loose the Export Market, if Indian Companies are not changing and improving to the European standard. This requires the Indian companies to go with good practice of Internal Audit on the ESG and mandatory annual social audit assurance on the ESG.    *BIRENDRA K JHA                   Indian Companies whose markets are European Union should must be alert. This is time to change. Either perform or get perished. If not changing for ESG compliance, the time shall change and end the business. The EU’s following countries: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden have adopted as Law

The   "Environment Factor" of the Reliance Refinery at Jamnagar is audited here. There are two methane emission points at the Jamnagar Refinery. These two methane emission points are undetected in CRISIL ESG Rating.   How the other two different pillars of the ESG stand here is still unverified, as one can't trust the ESG Rating conducted by the CRISIL.  * BIRENDRA  K  JHA  Reliance Industries Limited is an important Indian multinational conglomerate. Its major business is into petrochemicals with world class refinery at Jamnagar. The Jamnagar refinery complex,  houses some of the world's largest units, such as the Fluidized Catalytic Cracker (FCC), Coker, Alkylation, Paraxylene, Polypropylene, Refinery Off-Gas Cracker (ROGC) and Petcock gasification plants. The Jamnagar refinery was commissioned in 1999. It processes an array of crude oils and produces petroleum products including liquefied petroleum gas (LPG), gasoline, propylene, naphtha, jet fuel, diesel, sulphur 

                                                                                                                                    *BIRENDRA K JHA  You might have come through eye catching advertisements "SBI Magnum Equity ESG Fund best plan,  invest Rs One Lac and get return of Rs 70 Lacs". The social media is filled with such investor provoking advertisements. This is demonstrated here that how the Mutual Fund, operators in India have done negligence in investment funding.  This is demonstrated here,  how  wide scale trust and protection of the interest  of the investors, who look for ESG Compliance, have been compromised. No doubt, the ESG Mutual Fund are promoting greenwash until or unless "consistent, comparable,  and  decision-useful  scheme" as mandated by the SEBI Guideline in protecting the investors are consistently taken by the stakeholders through a third party social audit.     The SEBI has jumped one step further in introducing the concept of the Gree

                                                                    * BIRENDRA K JHA   ( Warning  :  " The Experimental Science Rating Method in Social Audit” is a tool developed by this Social Auditor (the author). This is an intellectual property right protected by this Social Auditor not to be used in any way in any audit including the ESG Audit or the Social Impact Assessment Audit, without the written permission of this Social Auditor. For research paper publication  and academic works credit shall be given to this Social Auditor, with clear name and Membership Number    of the Institute of Social Auditors of India) The CRISIL's ESG Rating of banking sector in 2022 is poor, bad and doubtful. This touches the milestone, that in CRISIL, the people have no skill and quality for sensing the social audit related data correctly which touches the cornerstone of the ESG Rating. Almost similar position may be of the different other rating agencies on the ESG also, which badly r