SEBI Adds Green Credits Disclosure to BRSR, Defers Value-Chain Norms

SEBI has revised the LODR Regulations 2015 to add a voluntary green-credits leadership indicator within the BRSR framework and defer value-chain disclosure requirements by one year. Indian listed entities gain a recognised channel for reporting environmental contributions while facing a phased, market-cap-based timeline for mandatory BRSR Core assurance.

Following a December 18, 2024 decision based on Expert Committee recommendations and public consultation, SEBI formalised revisions to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A new BRSR leadership indicator lets listed entities voluntarily disclose green credits generated or procured, covering both the entity and its top ten value-chain partners by purchase and sales value. Companies may now choose between assessment or assurance for BRSR Core and value-chain ESG disclosures, with provisions applicable for BRSR disclosures from financial year 2024-25.

The changes affect SEBI-listed entities under a phased, market-capitalisation-based rollout. Mandatory assessment or assurance of BRSR Core began with the top 150 listed entities in FY 2023-24 and extends progressively to the top 1000 listed entities by FY 2026-27. Value-chain disclosures apply to the top 250 listed entities on a voluntary basis from FY 2025-26, with assessment or assurance of these value-chain disclosures also voluntary from FY 2026-27. Smaller listed businesses benefit from the one-year deferral and revised value-chain partner threshold.

Affected listed entities should map their reporting obligations to the phased BRSR Core assurance timeline running through FY 2026-27 and decide whether to pursue assessment or assurance for Core and value-chain disclosures. Companies should establish systems to track green credits generated or procured across the entity and its top ten value-chain partners ahead of voluntary FY 2025-26 reporting. Firms should also review the partial modifications to the Master Circular on Listing Obligations and Disclosure Requirements to confirm updated compliance steps.

Key figure — BRSR Core assurance scope: top 1000 listed entities by FY 2026-27