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Now, stakeholders want the businesses to show how they manage environmental, social and governance (ESG) issues. The Securities and Exchange Board of India (SEBI) has updated the rules for BRSR reporting. It is done to make sustainability disclosures clearer and more useful. They want your business to work the way top companies do.
These updates affect many businesses and it is important for you to understand what has changed and how it may impact your reporting journey.
Let’s see the updates.
What is SEBI BRSR Reporting and Why Does it Matter
Business Responsibility and Sustainability Reporting (BRSR) is a structured framework. It is introduced by SEBI. It is done to help your business show how it handles ESG clearly. It replaced the older Business Responsibility Report (BRR).
Under BRSR reporting, the company tells how it uses energy and water, cares for employees, follows rules and helps the community. The aim is to show transparent ESG information to people who care about your business. It can be investors and other stakeholders.
SEBI’s framework has also introduced BRSR Core. It focuses on important numbers (KPIs) to see how well a company is doing in sustainability. These rules make sure businesses give clear and similar ESG information.
Who Must Do BRSR Reporting
Originally, BRSR reporting is mandatory for the top 1000 listed companies in India by market capitalisation. These companies must give a report every year. It shows what they do, how they are managed and how they handle each ESG rule.
There is also BRSR Core reporting, which needs to be checked by someone outside the company. This is done step-by-step:
● The top 150 companies had to do it first
● Now SEBI is slowly making more companies do it by the year 2026 to 27
These steps give businesses time to collect the right data and get ready for their BRSR reporting.
Regulatory Updates in BRSR Reporting
SEBI has recently made new updates to BRSR reporting. These updates are meant to make it easier for businesses to follow the rules while still giving clear and trustworthy ESG information.
1. Value Chain ESG Disclosures
One big change you can see now is the ESG reporting for a company’s value chain. SEBI updated how businesses report ESG data for their partners. Now, businesses must include partners that make up at least 2% of their purchases or sales. In the first year, using last year’s data is optional. This gives you time to get ready.
2. Green Credit Disclosure
Another update is about “green credits.” These come from activities in which you help the environment. It can be like planting trees. Businesses and their top 10 value chain partners can now report green credits under the BRSR rules. This helps you to show clearly how you contribute to and work for the environment.
3. Assessment or Assurance
Businesses must get their ESG data checked. SEBI now allows two options:
● Assessment
● Assurance
These checks follow the standards and rules of the Industry Standards Forum (ISF) with SEBI. Using outside rules can make your data more reliable.
4. Timeline Adjustments and Voluntary Reporting
Some rules are not required at first. For example, you do not have to report last year’s value chain ESG data in the first year.
These easy steps help you get ready before full BRSR reporting is needed.
What Companies Should Do for BRSR Reporting
To align with the latest BRSR reporting requirements, companies should consider the following:
● Make Data Systems Strong: You need to have good systems to collect correct ESG data. Include data from your value chain partners too.
● Know Important Issues: Find out which sustainability issues matter most for your business and stakeholders.
● Plan for External Check: Decide if you will use an assessment or an assurance check for your ESG reports.
● Work With Stakeholders: Talk to your teams and partners to get accurate ESG information. You need to understand what others expect from your company.
Following these steps helps you make clear reports. It shows how your business cares about sustainability.
Benefits of Following BRSR Updates
Following the new BRSR reporting rules helps your business in many ways. You can:
● Build trust with investors and stakeholders
● Improve your sustainability practices
● Stay competitive
● Prepare for future rules
By focusing on these benefits, your business can become more reliable and trusted.
Summarising
SEBI made new rules for BRSR reporting. They want businesses to be more open about sustainability. But it also gives them time to get ready. The main changes you can see are:
● Value Chain ESG Disclosures
● Green Credit Disclosure
● Assessment or Assurance
● Timeline Adjustments and Voluntary Reporting
These changes will guide how companies share ESG data.
If you follow these new rules and plan early, your business can show that you are trustworthy to your investors and stakeholders.
