ESG disclosures for the worth chain will be relevant to the highest 250 listed entities on a comply-or-explain foundation from FY25.
The committee felt the definition of ‘worth chain’ wanted to be rationalised to cowl solely important companions. Accordingly, worth chain companions could be redefined to incorporate these upstream and downstream companions of a listed entity, individually comprising 2 per cent or extra of the listed entity’s purchases or gross sales (by worth), respectively.
For FY25, the primary yr of reporting ESG disclosures for the worth chain, reporting earlier yr numbers might be voluntary.
Inexperienced Credit generated by the corporate and the worth chain companions might be a further management indicator added below BRSR. This is in mild of the Ministry of Surroundings, Forest and Local weather Change notification dated February 22.
About BRSR, the time period “assurance” might be substituted with “evaluation or assurance”. This may present flexibility to listed entities to undertake both evaluation (which is cost-effective and never burdensome) or assurance (which can be requested by traders/purchasers of listed entities), stated a SEBI round on Wednesday.
SEBI mandated the highest 1,000 listed corporations to file BRSR as a part of their annual report from FY22-23 onwards. In 2023, it launched the BRSR Core framework for assurance and ESG disclosures for the worth chain.
BRSR Core is a sub-set of the SEBI BRSR format. BRSR Core consists of a number of extra key efficiency indicators below 9 ESG attributes.
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