Sebi contains Inexperienced Credit score Program beneath BRSR framework, ETCFO
Capital markets regulator Sebi on Friday determined to incorporate disclosure pertaining to the ‘Inexperienced Credit score Program’ by listed corporations beneath the Enterprise Accountability and Sustainability Reporting (BRSR) framework. The Inexperienced Credit might be generated by a listed firm and its worth chain companions via plantations of timber on waste or degraded lands and river catchment areas.
In its round, Sebi mentioned that ‘inexperienced credit’ generated by the listed firm and their high 10 worth chain companions might be added as a management indicator beneath Precept 6 of BRSR, which states that companies ought to respect and make efforts to guard and restore the setting.
This new requirement will probably be relevant for BRSR disclosures ranging from FY 2024-25 and onwards.
The disclosure can be in step with the Ministry of Setting, Forest and Local weather Change notification issued in February 2024.
As well as, Sebi has redefined ‘worth chain companions’, which now embody the 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.
Nevertheless, corporations can restrict their disclosure to cowl 75 per cent of their purchases and gross sales.
If an organization discloses ESG details about its worth chain, additionally it is required to reveal the proportion of complete gross sales and purchases coated by this info.
For the primary yr of worth chain ESG (environmental, social and governance) disclosures (FY 2025-26), Sebi mentioned that corporations can select whether or not or to not report information from the earlier yr (FY 2024-25).
From FY 2025-26, the highest 250 listed corporations (by market capitalization) can voluntarily disclose ESG info associated to their worth chain. From FY 2026-27, the evaluation or assurance of those disclosures will probably be voluntary, Sebi mentioned.
As regards to BRSR Disclosures and ESG reporting, Sebi mentioned that the highest 500 listed entities will probably be required to bear BRSR Core evaluation/assurance in FY 2025-26. This can develop additional in FY 2026-27 to incorporate the highest 1,000 listed entities to advertise broader sustainability reporting throughout a bigger phase of the company sector.
BRSR Core contains key efficiency indicators (KPIs) for 9 ESG areas, with new indicators related to India, reminiscent of job creation in small cities and wages paid to girls.
