The Securities and Exchange Board of India (SEBI), during its 208th board meeting, introduced a series of pivotal measures aimed at enhancing the ease of doing business with respect to Business Responsibility and Sustainability Report (BRSR) and Environmental, Social, and Governance (ESG) disclosures. These measures mark a significant shift towards simplifying compliance requirements while maintaining the momentum of sustainability initiatives in India. Here’s a closer look at the approved changes:

Key Outcomes of SEBI’s 208th Board Meeting:

1. ESG Disclosures for Value Chain:
   To reduce compliance complexity for listed entities and their value chain partners, SEBI has deferred the mandatory ESG disclosures for the value chain by one year. These disclosures will now be applicable from FY 2025-26, with the associated “assessment or assurance” required from FY 2026-27. Additionally, the disclosure requirements for the value chain have been made voluntary, replacing the earlier ‘comply-or-explain’ mandate.
2. Refined Scope of Value Chain Reporting:
   SEBI has rationalized the scope of value chain disclosures, limiting them to the top upstream and downstream partners contributing 2% or more of a listed entity’s purchases and sales by value. Listed entities may also choose to cap their value chain disclosures to cover 75% of total purchases and sales, ensuring a focused yet comprehensive approach to ESG reporting.
3. First-Year Reporting Relaxation:
   For the first year of ESG disclosure implementation, reporting previous year’s data will be voluntary, providing companies with additional flexibility as they adapt to the new requirements.
4. Leadership Indicators in BRSR:
   A new leadership indicator has been introduced under Principle 6 of the BRSR framework. This will enable listed entities and their top 10 value chain partners to disclose details of Green Credits generated or procured, highlighting their contributions to environmental sustainability.
5. Assessment or Assurance:
   The term “assurance” has been updated to “assessment or assurance”, allowing for third-party assessments based on standards developed by the Industry Standards Forum (ISF) in consultation with SEBI. This change applies to BRSR Core disclosures starting FY 2024-25 for listed entities and FY 2026-27 for value chain disclosures.
6. Framework for ESG Rating Providers (ERPs):
   To improve operational efficiency and transparency for ESG Rating Providers (ERPs), SEBI has implemented measures to synchronize the release of ESG rating reports to subscribers and rated issuers, streamline appeal processes, and regulate activities under other financial sector authorities. These changes aim to enhance credibility and stakeholder trust in ESG ratings.

How ESG360 Can Support You:

At ESG360, we specialize in helping companies navigate the evolving ESG and BRSR landscape with confidence and ease. With SEBI’s revised framework emphasizing third-party assessments and value chain disclosures, our comprehensive solutions ensure your company stays ahead of the curve. Here’s how we can assist:

• Data Collection Simplified: Our expertise in collecting and streamlining data across your value chain ensures compliance with the latest SEBI mandates while maintaining a focus on operational efficiency.
• End-to-End ESG Assurance: ESG360 provides robust assessment and assurance services aligned with the Industry Standards Forum’s guidelines, offering you peace of mind and regulatory clarity.
• Custom Training and Advisory: Stay informed with our expert-led training programs on BRSR, ESG, and sustainability, designed to empower your teams with actionable insights and strategic guidance.

SEBI’s proactive measures underscore the growing importance of ESG in India’s corporate governance framework. Partner with ESG360 to leverage these changes as opportunities for enhanced transparency, sustainability, and long-term growth.

Explore how we can elevate your ESG journey at www.esg360.in or reach out to us today!