On March 28, 2025, the Securities and Exchange Board of India (SEBI) issued Circular introducing significant measures aimed at enhancing the ease of doing business for listed entities. These measures focus on revising Environmental, Social, and Governance (ESG) disclosures, particularly concerning the value chain, and offer options for either assessment or assurance of Business Responsibility and Sustainability Reporting (BRSR) Core. Additionally, the circular introduces voluntary disclosures related to green credits.
Key Highlights of SEBI’s Circular:
Inclusion of Green Credits in BRSR: SEBI has amended Principle 6 of the BRSR, as outlined in Annexure 16 of the Master Circular dated November 11, 2024. An additional leadership indicator has been incorporated, requiring listed entities to disclose:
- The number of green credits generated or procured by the entity.
- The number of green credits generated or procured by their top ten value chain partners, based on the value of purchases and sales.
Implications for Listed Entities:
Enhanced Transparency: The inclusion of green credits and detailed ESG disclosures will provide stakeholders with a clearer understanding of a company’s environmental impact and sustainability efforts.
Operational Efficiency: The option for assessment or assurance aims to reduce the compliance burden on companies by offering flexibility in how they validate their sustainability reports.
Strategic Collaboration: By extending ESG disclosures to value chain partners, companies are encouraged to engage more deeply with their suppliers and customers on sustainability initiatives, fostering a more comprehensive approach to corporate responsibility.
