SEBI mandates BRSR Core assurance and value-chain ESG disclosures

SEBI's July 12, 2023 circular introduced the BRSR Core format with mandatory reasonable assurance and new value-chain ESG disclosures for India's top listed companies. The phased rollout sets binding, assured sustainability reporting obligations across the top 1000 listed entities and their primary value-chain partners.

SEBI's circular of July 12, 2023 introduced the updated BRSR and a new BRSR Core format, a subset standardising KPIs across nine ESG attributes. From financial year 2023-2024, the top 1000 listed entities must disclose ESG performance using the updated BRSR in their Annual Reports. BRSR Core adds India-relevant KPIs covering job creation in small towns, gross wages paid to women and PPP-adjusted intensity ratios for global comparability. Listed entities must obtain reasonable assurance on BRSR Core attributes from competent agencies free of conflicts of interest.

The regulations affect the top 1000 listed companies, with assurance phased in for the top 150 entities in the initial year and the top 250 thereafter. Assured attributes include GHG, water and energy footprints, circularity, employee well-being and safety, gender diversity, inclusive development, fairness with customers and suppliers, and business openness. Value-chain ESG disclosures apply to the top 250 listed entities on a comply-or-explain basis from FY2024-2025, covering upstream and downstream partners accounting for 75% of purchases or sales.

Listed entities should map BRSR Core attributes, appoint conflict-free assurance providers ensuring no consulting or non-audit services are sold to the company or group, and prepare value-chain data with disclosed scope, assumptions and estimates. The top 150 must obtain reasonable assurance first, the top 250 next. Value-chain limited assurance is required from FY2025-2026. Companies should align reporting timelines and begin engaging primary value-chain partners covering 75% of purchases or sales now to meet the phased deadlines.

Key figure — Value-chain coverage threshold: 75% of purchases or sales