BRSR Core – Framework for assurance and ESG disclosures for value chain
Summary
This circular introduces the BRSR Core framework for assurance and ESG disclosures covering the value chain of listed entities. It mandates reasonable assurance for the top 1000 listed entities based on a phased glide path starting from FY 2023-24. Additionally, it requires ESG disclosures for the value chain by the top 250 listed entities on a comply-or-explain basis.
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The BRSR Core is a sub-set of the BRSR, consisting of a set of Key Performance Indicators (KPIs) / metrics under 9 ESG attributes... The format of BRSR Core for reasonable assurance is placed at Annexure I.
In order to facilitate the verification process, the BRSR Core specifies the data and approach for reporting and assurance. It is however clarified that the approach specified is only a base methodology. Any changes or industry specific adjustments / estimations shall be disclosed.
From FY 2023 – 2024, the top 1000 listed entities (by market capitalization) shall make disclosures as per the updated BRSR format, as part of their Annual Reports.
Listed entities shall mandatorily undertake reasonable assurance of the BRSR Core, as per the glide path specified in the following table: 2023 – 24 Top 150 listed entities; 2024 – 25 Top 250 listed entities; 2025 – 26 Top 500 listed entities; 2026 – 27 Top 1000 listed entities.
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, cumulatively comprising 75% of its purchases / sales (by value) respectively.
Listed entities shall report the KPIs in the BRSR Core for their value chain to the extent it is attributable to their business with that value chain partner. Such reporting may be segregated for upstream and downstream partners or can be reported on an aggregate basis.
The scope of reporting and any assumptions or estimates, if any, shall be clearly disclosed.
ESG disclosures for the value chain shall be applicable to the top 250 listed entities (by market capitalization), on a comply-or-explain basis from FY 2024-25.
The limited assurance of the above shall be applicable on a comply-or-explain basis from FY 2025 - 26.
The Board of the listed entity shall ensure that the assurance provider of the BRSR Core has the necessary expertise, for undertaking reasonable assurance.
The listed entity shall ensure that there is no conflict of interest with the assurance provider appointed for assuring the BRSR Core. For instance, it shall be ensured that the assurance provider or any of its associates do not sell its products or provide any non-audit / non-assurance related service including consulting services, to the listed entity or its group entities.
The Stock Exchanges are advised to bring the provisions of this circular to the notice of all listed entities and also disseminate the same on their websites.
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Source: SecMarx — BRSR Core – Framework for assurance and ESG disclosures for value chain. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.