SEBI has introduced new measures to ease compliance for listed companies regarding ESG (Environmental, Social, and Governance) disclosures, Green Credits, and Sustainability Reporting for Value Chain Partners.

Green Credits:

• A new leadership indicator on green credits (generated and procured) have been added on principle 6. Details of company and its top 10 value chain partners to be disclosed
• Effective for Business Responsibility & Sustainability Reporting (BRSR) from FY 2024-25 onwards.

Assessment vs. Assurance for ESG Reporting:

• Companies can choose between third-party assessment or assurance for BRSR Core reporting.
• 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

ESG Disclosures for Value Chain:

• Reporting for top upstream & downstream partners (covering ≥2% of purchases/sales).
• Disclosures on voluntary basis instead of comply or explain basis from FY 2025-26 instead of FY 2024-25
• Voluntary assessment or assurance from FY 2026-27 instead of FY 2025-26 .
• First-year reporting of past data (FY 2024-25) is kept optional as per the latest circular.
• If a listed entity provides ESG disclosures for value chain, therefore, it shall disclose the percentage of total sales and purchases covered by the value chain partners, respectively, for which ESG disclosure are provided.