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Informist, Wednesday, Dec. 18, 2024

--SEBI defers ESG disclosures for value chain of listed cos by 1 yr to FY26 

--SEBI: ESG disclosures for value chain of listed cos to be voluntary 

MUMBAI – The Securities and Exchange Board of India on Wednesday approved a proposal deferring environmental, social and governance disclosures for the value chain partners of listed companies by one year to 2025-26 (Apr-Mar), and the assessment of these disclosures to FY27. Earlier, the value chain partners were required to make ESG disclosures from FY25 and its assessment was needed to be done in FY26. 

The SEBI board, in its meeting on Wednesday, also approved a proposal to make ESG disclosures for value chain partners "voluntary", instead of the earlier requirement of "comply-and-explain". The market regulator has also reduced the scope of the value chain to cover the top upstream and downstream partners of a listed entity, individually comprising 2% or more of the listed entity's purchases and sales by value, respectively. The listed entity will also be able to limit disclosure of the value chain to cover 75% of its purchases and sales by value, respectively, SEBI said.

Further, the market regulator has made reporting of the previous year's numbers "voluntary" in the case of the first year of reporting of ESG disclosures for the value chain. It also approved substitution of "assurance" with "assessment or assurance" in SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding the Business Responsibility and Sustainability Report. "'Assessment' will be third-party assessment undertaken as per standards to be developed by the Industry Standards Forum (ISF) in consultation with SEBI. This would be applicable for BRSR Core disclosures for listed entities and value chain from FY 2024-25 and FY 2026-27 onwards, respectively," SEBI said.  End

Reported by Darshan Nakhwa 

Edited by Avishek Dutta

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