SEBI Postpones ESG Disclosure Deadline Under BRSR Framework to FY26.

Banking & Finance

The Securities and Exchange Board of India (SEBI) has announced a one-year deferment of the Environmental, Social, and Governance (ESG) disclosure deadline for value chain partners of listed companies. The new deadline has been shifted from Financial Year 2024-25 (FY25) to Financial Year 2025-26 (FY26). This decision was made during SEBI's 208th Board meeting held in Mumbai, Maharashtra.


      - The ESG disclosures for value chain partners will continue to remain 'voluntary' rather than transitioning to the 'comply-and-explain' requirement.

      - SEBI has deferred the applicability of ESG disclosures for "assessment or assurance" to FY27, instead of the earlier stipulated FY26.

      - The decision aims to facilitate ease of compliance for listed companies and their value chain partners in meeting the Business Responsibility and Sustainability Reporting (BRSR) framework requirements.

Main Point :-   (i) SEBI's board has decided to narrow the scope of value chain disclosures to include only the top upstream and downstream partners of a listed company contributing 2% or more to the company's purchases or sales (by value), allowing companies to limit these disclosures to 75% of their total purchases and sales by value.

      (ii) Under Principle 6 of the BRSR, listed companies and their top 10 value chain partners must disclose green credits created or procured, promoting sustainability practices.

(iii) SEBI will implement third-party assessments for BRSR Core disclosures starting FY25 for listed companies and FY27 for their value chain, following standards developed by the Industry Standards Forum (ISF).
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Chairperson : Madhabi Puri Buch
Headquarters : New Delhi
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