December
Instruments & Regulations

SEBI defers ESG disclosure deadline under BRSR framework by one year till FY26

[Source - ET Legal World , 19 December 2024]
Author
Charmi Mehta

Notable because

The Business Responsibility and Sustainability Report (BRSR) is the principal sustainability disclosure standard for listed entities (LEs) in India and comprises two formats: Comprehensive and Core. These are fundamental to corporate net-zero strategy.

BRSR Comprehensive is mandatory for the Top 1000 LEs and requires reporting of Scope 1 and 2 emissions. BRSR Core, applicable to the top 250 LEs, mandates Scope 3 disclosures for 75% of the supply chain, and was due to come into effect from FY2024 onwards.

What to look out for in the months ahead

Scope 3 disclosures are essential to measure financed emissions (by financial institutions). Deferring the BRSR Core mandate delays the cycle of data on supply chain emissions, which is critical for sectoral net-zero strategies.

Recent reports suggest compliance on BRSR Comprehensive has been low despite it being mandatory.

In this context, is delaying the compliance cycle the solution? 

What form will ESG disclosure regulations in India take, considering the low compliance levels so far?