The Securities and Exchange Board of India (SEBI) has introduced a new mandate requiring listed companies to provide disclosures related to the ‘Green Credit Program’ under the Business Responsibility and Sustainability Reporting (BRSR) framework. In a recently issued circular, the board said that listed entities and their top 10 value chain partners, determined by the value of purchases and sales, must now disclose green credit figures starting from FY 2024-25. The changes, based on recommendations from an expert committee and public consultations, were approved by SEBI in December 2024. To reduce compliance costs and facilitate sustainability verification, the regulator now allows listed entities to opt for either ‘assessment’ or ‘assurance’ for BRSR core metrics. Additionally, new key performance indicators focus on job creation in smaller towns, business openness, and wages paid to women, among others. The rollout of mandatory assessment or assurance follows a phased approach, applying to the top 250 entities in 2024-25, top 500 in 2025-26 and top 1000 in 2026-27. SEBI has deferred the requirement for ESG value chain disclosures by one year to provide listed entities and their partners additional time to establish measurement and reporting systems. Under the revised rules ESG disclosures for the value chain will be voluntary for the top 250 listed entities from FY 2025-26, while from FY 2026-27 assessment or assurance for these disclosures will also be voluntary
