Introduction
The Securities and Exchange Board of India (SEBI) has taken a significant step in strengthening India’s ESG reporting framework by including the Green Credit Program within its Business Responsibility and Sustainability Report (BRSR) requirements. This inclusion comes under Principle 6 of the BRSR, which emphasizes environmental protection and restoration of natural resources.
This update, applicable from FY 2024–25, requires companies to report efforts contributing to the generation of Green Credits—making it the first time SEBI has tied regulatory ESG disclosures to a quantified environmental incentive model.
What are Green Credits?
The Green Credit Program (GCP) is a government-backed market-based mechanism aimed at encouraging voluntary environmental action. Green Credits represent measurable outcomes from activities that positively impact the environment.
Under this program, individuals, companies, and institutions are rewarded for carrying out eco-restorative actions such as:
- Tree plantations on degraded or deforested lands
- Rejuvenation of river catchment areas
- Other activities as notified by the Ministry of Environment, Forest and Climate Change (MoEFCC)
These Green Credits can potentially become tradable in the future, similar to carbon credits, adding financial value to environmental responsibility.
Why This Matters
With this update, SEBI is moving beyond policy-based ESG disclosures and pushing for impact-based reporting. Companies will now need to go beyond narrative statements and demonstrate real environmental contributions through measurable outcomes.
This change sends a strong message to corporates that tangible climate action is no longer optional—it’s an integral part of mainstream sustainability reporting.
Moreover, this shift is aligned with India’s broader environmental goals, including commitments made under the Paris Agreement and Nationally Determined Contributions (NDCs).
What Companies Should Start Doing
To stay ahead of compliance and position themselves as ESG leaders, companies need to start preparing now. Here’s how:
- Review Current Initiatives: Examine ongoing CSR and sustainability programs to identify any that align with the Green Credit framework.
- Initiate Qualifying Activities: Begin planning new environmental programs—such as afforestation or wetland restoration—that generate Green Credits.
- Build Internal Tracking Systems: Ensure your ESG reporting systems can measure, record, and validate environmental impacts.
- Collaborate Across Value Chain: Engage suppliers and partners who may be involved in implementation or who benefit from shared environmental action.
This isn’t just a compliance issue—it’s a chance to tell a compelling sustainability story backed by data.
How ESG360 Can Support You
At ESG360, we help businesses translate sustainability goals into actionable, reportable, and regulatory-compliant initiatives. In light of SEBI’s latest update, we can assist your company in:
- Identifying and mapping activities aligned with the Green Credit Program
- Integrating Green Credit reporting into your BRSR Core and Comprehensive disclosures
- Ensuring data accuracy and assurance-readiness through robust systems and templates
- Building internal capabilities through ESG-focused training sessions
Whether you’re a listed company preparing for BRSR or an organization aspiring to align with best practices, our expertise ensures you’re always ESG-ready.
Want to Get Started?
The inclusion of Green Credit disclosures in the BRSR framework is a forward-looking step that places environmental impact at the heart of ESG compliance. If you’re unsure how to integrate this into your reporting process, now is the right time to start.
📧 Email us at info@esg360.in
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Let’s turn compliance into impact—and reporting into responsibility.