With regulatory emphasis intensifying around ESG disclosures, the Securities and Exchange Board of India (SEBI)-mandated Business Responsibility and Sustainability Reporting (BRSR) framework is evolving rapidly. Indian listed companies are entering a pivotal phase of ESG disclosure evolution. Here are the top changes coming into effect:
1)Expanded reasonable assurance/assessment mandate for BRSR Core: From FY 2026-27, the top 1,000 listed companies will be required to provide third-party “assessment or assurance” of their BRSR Core disclosures.
2)Value-chain Partners ESG disclosures relaxation: ESG disclosures covering upstream and downstream partners (those accounting for ≥2% of purchases or sales) has been made as voluntary from the initial mandatory requirements starting FY 2025-26, with assurance/assessment required from FY 2026-27.
3)New leadership indicator Green Credits: Under Principle 6 of the BRSR, companies must disclose green credits generated or procured by the entity and their top-10 value chain partners.
4)Industry-specific standards released: The Industry Standards Forum (ISF) has issued “Industry Standards on Reporting of BRSR Core” (20 Dec 2024) to standardise disclosure across sectors.
5) Phased rollout by market-cap tier:
FY 2023-24: Top 150 companies
FY 2024-25: Top 250 companies
FY 2025-26: Top 500 companies
FY 2026-27: Top 1,000 companies must comply with full or reasonable assurance/assessment, and so on…
If your company is listed (or in the supply chain of a listed company), now is the time to ramp up ESG data systems, baseline key operational metrics, engage value chain partners, and plan for credible assurance/assessment.
If your company is not a listed company yet, let’s understand how ESG reporting like BRSR creates value more than just compliance:
1)BRSR aligns with global ESG disclosure norms (like GRI, SASB, TCFD), making it easier for investors, PE funds, and ESG-themed funds to evaluate the companies.
2)Regular measurement of energy, water, waste, socially related expenses & other KPIs highlights inefficiencies in operations & control.
3)The value chain-related disclosures build resilience and traceability to mitigate key differentiators during supply disruptions.
4)BRSR data helps the leadership team understand climate, social, and governance risks and integrate them into Enterprise Risk Management systems for better scenario planning towards carbon pricing, regulatory shifts, social license risks, etc.
Let’s shift from mere “compliance” to “value creation” with ESG reporting.
Let’s connect and discuss how we can help you achieve your goals! Contact us today to get started info@conserveconsultants.com | Call 9190030 97071 | Visit https://lnkd.in/dThYxcG2
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