Measures to facilitate ease of doing business with respect to framework for assurance or assessment, ESG disclosures for value chain, and introduction of voluntary disclosure on green credits.
Summary
This circular amends SEBI LODR Regulations and the Master Circular to facilitate ease of doing business regarding ESG disclosures. It introduces voluntary disclosure on green credits and allows listed entities to choose between assessment or assurance for BRSR Core. Additionally, it defers value chain ESG disclosures by one year and revises the applicable thresholds for partners.
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Based on recommendations of the Expert Committee for Facilitating Ease of Doing Business and pursuant to public consultation, the Board decided to revise various provisions regarding ESG disclosures for value chain, provide an option to undertake ‘assessment’ or ‘assurance’ for BRSR Core and ESG disclosures for value chain, and introduce disclosure on green credits.
The provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in this regard have been amended vide Gazette ID CG-MH-E-28032025-262027 dated March 28, 2025.
In Principle 6 of BRSR, provided under Annexure 16 of the aforementioned master circular, an additional leadership indicator (i.e. an eighth leadership indicator) shall be included seeking disclosures on green credits in the following format - '8. How many Green Credits have been generated or procured: a. By the listed entity b. By the top ten (in terms of value of purchases and sales, respectively) value chain partners'
The provisions under this Section shall be applicable for BRSR disclosures for FY 2024-25 and onwards.
It is specified that “assessment” refers to third-party assessment undertaken as per the standards developed by the Industry Standards Forum (ISF) in consultation with SEBI.
Listed entities shall mandatorily undertake assessment or assurance of the BRSR Core, as per the glide path specified in the following table: Financial Year Applicability of BRSR Core to top listed entities (by market capitalization) 2023 – 24 Top 150 listed entities 2024 – 25 Top 250 listed entities 2025 – 26 Top 500 listed entities 2026 – 27 Top 1000 listed entities
The Board of the listed entity shall ensure that the assessment or assurance provider of the BRSR Core has the necessary expertise, for undertaking assessment or assurance.
The listed entity shall ensure that there is no conflict of interest with the assessment or assurance provider appointed for assessing or assuring the BRSR Core. For instance, it shall be ensured that the assessment or assurance provider or any of its associates do not sell its products or provide any non-audit / non-assessment / non-assurance related service including consulting services, to the listed entity or its group entities.
the column “Data & Assurance Approach” shall be read as: “Data & Assessment or Assurance Approach”.
Disclosure may be provided if certificates from vendors have been relied upon for assessment or assurance of KPIs on waste management.
Disclosures for value chain shall be made by the listed company as per BRSR Core, as part of its Annual Report. For this purpose, value chain shall encompass the top upstream and downstream partners of a listed entity, individually comprising 2% or more of the listed entity's purchases and sales (by value) respectively. However, the listed entity may limit disclosure of value chain to cover 75% of its purchases and sales (by value) respectively.
ESG disclosures for the value chain shall be applicable to the top 250 listed entities (by market capitalization), on a voluntary basis from FY 2025-26.
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Source: SecMarx — Measures to facilitate ease of doing business with respect to framework for assurance or assessment, ESG disclosures for value chain, and introduction of voluntary disclosure on green credits.. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.