SEBI Update - Measures to facilitate ease of doing business with respect to framework for assurance or assessment, ESG disclosures for value chain, and introduction of voluntary disclosure on green credits.

SEBI issued the circular regarding Measures to facilitate ease of doing business with respect to framework for assurance or assessment, ESG disclosures for value chain, and introduction of voluntary disclosure on green credits.

The following has been stated

Green Credits In Principle 6 of BRSR, provided under Annexure 16 of the aforementioned master circular, an additional leadership indicator (i.e. an eighth leadership indicator) shall be included seeking disclosures on green credits in the following format - “8. How many Green Credits have been generated or procured: a. By the listed entity b. By the top ten (in terms of value of purchases and sales, respectively) value chain partners

The provisions under this Section shall be applicable for BRSR disclosures for FY 2024-25 and onwards.

Assessment or Assurance The BRSR Core consists of Key Performance Indicators (KPIs) under 9 ESG attributes .New KPIs include job creation in small towns, openness of business, gross wages paid to women, etc. For global comparability , intensity ratios based on revenue adjusted for Purchasing Power Parity (PPP) have been introduced.The format for assessment or assurance is detailed in Annexure 17A .“Assessment” refers to a third-party review undertaken as per Industry Standards Forum (ISF) standards, developed in consultation with SEBI . The requirement for assessment or assurance of BRSR Core will be phased in based on market capitalization:

Financial Year Applicability 2023 – 24 Top 150 listed entities 2024 – 25 Top 250 listed entities 2025 – 26 Top 500 listed entities 2026 – 27 Top 1000 listed entities

Appointment of Assessment or Assurance Provider

The Board of the listed entity must ensure the assessment or assurance provider has the necessary expertise .

Conflict of Interest Restrictions:

The provider must not sell products or provide non-audit/non-assessment/non-assurance services , including consulting , to the listed entity or its group companies

Amendments to Reporting Formats

Annexure 16 (Disclosure Requirements):

Point 14: Name of assessment or assurance provider .

Point 15: Type of assessment or assurance obtained .

Annexure 17A (Format of BRSR Core):

Column “Data & Assurance Approach” revised to “Data & Assessment or Assurance Approach” .

Sr. No. 4 – Waste Recovery Parameter:

Disclosures must specify if ven