SEBI ESG Disclosure

SEBI, the Securities and Exchange Board of India, has released a circular introducing the BRSR Core framework, aiming to enhance assurance and ESG (Environmental, Social, and Governance) disclosures for listed entities' value chain. The circular informs all listed entities and recognized stock exchanges about changes made to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The BRSR Core is a part of the Business Responsibility and Sustainability Report (BRSR) and includes a set of Key Performance Indicators (KPIs) related to 9 ESG attributes. These KPIs are customized for the Indian and emerging market context and cover aspects like job creation, business openness, and wages paid to women. The BRSR format has been updated to incorporate these new KPIs.

According to the circular, the top 1000 listed entities based on market capitalization must follow the updated BRSR format for disclosures, starting from the financial year 2023-2024. The implementation of the BRSR Core will occur in phases, with the top 150 entities required to comply in 2023-2024, followed by the top 250 entities in 2024-2025, the top 500 entities in 2025-2026, and the top 1000 entities in 2026-2027.

Additionally, the circular introduces ESG disclosures for the value chain, requiring listed entities to report BRSR Core KPIs for their major upstream and downstream partners. The reporting should be transparent, clearly indicating the scope, assumptions, and estimates. This requirement applies to the top 250 listed entities based on market capitalization from the financial year 2024-2025.

The circular emphasizes that listed entities must ensure the assurance provider for the BRSR Core possesses the necessary expertise and has no conflict of interest. It also instructs stock exchanges to disseminate the circular's provisions to all listed entities and publish it on their websites. #esgreporting#sebi#reporting

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