Social Audit

                                                                          * BIRENDRA K JHA "Social Risk" is an important part of the ESG. Many ESG Managers, have little expertise over the "Social Risk", which definitely covers the Human Resource best practice and compliance of Human Right with Labor Law.    ESG, is not alone the mission to "reduce the environment risk". Expert says violation of good HR and labor law practices are generating more carbon emission. When European Commission has tightened the nose of the strong ESG practices, then in this situation, company reporting poor ESG, shall be allowed to enter the European market ? Never, the European Commission shall blacklist such companies to operate in their European  territory.   In this condition,  shall Samsung also be able to gain entry in the European Market? This is mind blowing.  Samsung is suspected of having breached ESG good practices. It has poor history in controlling "Social Risk&

                                                                          *BIRENDRA K JHA  Social Auditor, has wide expertise  to audit the "Non-Financial Business".  Audit of climate-change is the business of first pillar of the ESG. The poor, ESG compliance has raised several litigation. This litigation has raised immediate punishment to the directors of company for filing wrong ESG reporting in the BRSR.  This litigation has touched the corner stone of following types of ESG litigation. Somewhere there is failure of ESG compliance and somewhere failure to account  correctly the ESG related emission. This mandates complete audit and assurance by independent auditor on the the ESG.  Here, ESG litigation is discussed on the first pillar "Environment". In Social pillar, which is dealing with human resource practice, labor law practice and human right practices have a wide array of judicial impacts running from lower courts to the Hon'ble Supreme Court. This is wi

  Mumbai town, is vulnerable site from the threat of high sea level. It has potential of damaging the banking business situated at Mumbai. But in the banking sector while disclosing BRSR report, this ESG risk  is missing. There is no contingency plan to handle this risk. This is one example of several other missing high ESG risks in the BRSR disclosure submitted to SEBI  by the Indian Banks * BIRENDRA K JHA  I visited a big branch of ICICI Bank at Delhi-NCR sometimes back. I found "5S" policy hanging in a clip placed in an isolated corner at bank, with lot of dust on it. In reality, policy is there but practice is missing. This is not the story of ICICI Bank alone. The condition of government sector banks are more poor and worst. One can't expect a systematic culture of "5S" here. You ask director level people sitting here in bank about the "5S". They start looking here and there! They try to skip their face! They try to avoid this question! This is sk

                                                                       * BIRENDRA  K JHA The thrust of the Companies Act, 2013 on businesses,  puts fiduciary duties on the Directors of a Company under Section 166,  requiring them to promote the objects of the company for the benefit of its members as a whole, and in the best interests of the company, its employees, the shareholders, the community and for the protection of environment. If this mandate is read clearly then it requires the director to follow strictly, the Complaints/Grievances'  on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct, based on reasonable assurance & audit. A large number of top Indian companies have been getting third-party audit-assurance on their sustainability reports under the voluntary reporting regime as well as mandatory. The crux is that, if BRSR is presented for disclosure with the annual report, it should must incorporate SEBI mandatory

                                                                              * BIRENDRA K JHA   So far, what I know about the Adani,  the top leadership Mr. Gautam Adani, is very law adherent person. He has great respect for the social conscious business. People sitting in the downside or even sitting in the board of directors if are not doing their  job properly, then this is a gap point.   It requires complete training of people from top to bottom in the field of ESG skill. This is completely lack of skill,  at Adani, where  ESG practices are not managed correctly. Regular ESG Audit has become ever more essential tool for the companies to remain in business.  A regular thorough ESG Audit,  allows to identify corporate strategies gaps. A qualified ESG Auditor, tracks down key environmental, social, and governance indicators. This needs the ESG Auditor, to collect company's ESG program from multiple sources using his "professional skepticism" approach in collecting data.

* BIRENDRA K JHA  "Many HR Managers think that ESG is a technical job. No,  ESG is a tool for considering social concerns including equality, human rights, and labor relations. Hence,   this is pure HR job,  which involves, social dimension of handling the human resource compliance to the environmental compliance including the labor  related issues and problems. The HR Managers have failed to understand the job description of the ESG profile. They are shifting the ESG job from there own shoulders to the   other shoulders".  The high rate of carbon emission is a panic alarm for the regulatory authority. In most of the Indian companies, if ESG part is seriously audited, then the  result is very grim. Most of the ESG Auditors are not properly trained in human resource practices, so they are unable to audit effectively the "Social" pillar in the ESG Part and capture the gaps in the ESG practices. Many environmental compliance issues are related with the social administr

  .                                                                      * 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