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July 13, 2023
Summary of the SEBI Circular dated 12/07/2023.
This notification is integrated in our free-to-use website ca2013.com.
Introduction of BRSR Core, a framework for assurance and ESG disclosures for value chain.
Considering the recommendations of the ESG Advisory Committee and consultations from public, SEBI has introduced the BRSR Core, a sub-set of the BRSR, consisting the disclosures and assurance for the value chain of listed entities, on the basis of a set of Key Performance Indicators (KPIs) / metrics under 9 ESG attributes.
Value chain of the listed entities shall encompass the top upstream and downstream partners, cumulatively comprising 75% of its purchases / sales (by value) respectively. Disclosures to such value chain shall be made by the listed company as per BRSR Core, as part of its Annual Report. Reporting of KPIs shall be to the extent it is attributable to their business with that value chain partner, segregating for upstream and downstream partners or can even be reported on an aggregate basis, the scope being clearly disclosed.
· Applicability-
A- From FY 2023 –2024, the top 1000 listed entities (by market capitalization) shall make disclosures as per the updated BRSR format, as part of their Annual Reports.
B- Listed entities to ensure reasonable assurance of the BRSR Core as per the glide path specified below :
Financial Year Applicability of BRSR Core to top listed entities.
(by market capitalization)
2023 – 24 Top 150 listed entities
2024 – 25 Top 250 listed entities
2025 – 26 Top 500 listed entities
2026 – 27 Top 1000 listed entities
A- ESG disclosures for the value chain shall be applicable to the top 250 listed entities (by market capitalization), on a comply-or-explain basis from FY 2024-25 and the limited assurance of the same shall be applicable on a comply-or-explain basis from FY 2025 – 26.
· Assurance provider–
The Board of the listed entity shall ensure that the assurance provider of the BRSR Core has the necessary expertise, for undertaking reasonable assurance and ensure that there is no conflict of interest.
Considering the Indian / Emerging market context, few new KPIs have been identified for assurance. The format of this newly introduced BRSR Core and the revised BRSR format after incorporating new KPIs of BRSR Core is also included in the Master Circular issued on 11th July 2023.
Click here to view the SEBI Circular.
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