Sebi proposes changes to the Business Responsibility and Sustainability Reporting BRSR framework.
Key Proposed Changes:
Integration of the Green Credit Program:
- Companies and their value chain partners can generate Green Credits by planting trees on waste or degraded lands and river catchment areas.
- These credits will now be included as a leadership indicator under Principle 6 of the BRSR, which focuses on environmental respect and restoration.
Redefinition of Value Chain (VC) Partners:
- The new definition covers significant partners, specifically those involved either upstream or downstream, who individually constitute 2% or more of the company’s purchases or sales by value.
- Reduces compliance burdens by limiting the scope to significant partners only.
Reporting Flexibility:
- For FY 2024-25, reporting on value chain partners in the annual report is voluntary.
- Companies can opt to report either an assessment or assurance of their ESG data under the BRSR framework. This choice aims to reduce the regulatory burden and costs associated with the assurance process.
Adjustments to BRSR Core: Companies now have the flexibility to choose between assessment and assurance for the nine Key Performance Indicators (KPIs) under the BRSR Core, which focuses on ESG factors.
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