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illuminem summarises for you the essential news of the day. Read the full piece on Mongabay or enjoy below:
🗞️ Driving the news: India’s market regulator SEBI has issued new ESG disclosure norms that redefine which suppliers and customers listed companies must include in their sustainability reports
• Under the updated rules, value chain partners accounting for 2% or more of a company’s purchases or sales must be included in ESG reporting, covering up to 75% of total transactions
• The rules also mandate reporting on green credits, aligning corporate disclosures with India’s Green Credit Programme
🔭 The context: SEBI’s updated Business Responsibility and Sustainability Reporting (BRSR) framework—now referred to as BRSR Core—requires the top 1,000 listed companies to disclose ESG data across nine critical areas
• The latest revisions build on consultations held in 2024 and are designed to harmonise Indian ESG disclosures with global standards while easing compliance burdens for smaller businesses in vast, fragmented supply chains
• Reporting for value chain partners becomes voluntary in 2025–26 and will be assessed from 2026–27
🌍 Why it matters for the planet: By expanding ESG reporting to include key value chain actors, SEBI’s revisions push corporate accountability deeper into supply networks where much of the environmental and social impact occurs—especially in sectors like garments, automobiles, and resource extraction
• Simultaneously, the inclusion of green credit disclosures supports broader efforts to scale market-based environmental incentives and improve visibility into how companies are using CSR funds for environmental action
⏭️ What's next: The top 250 listed entities will begin voluntary ESG reporting for value chain partners in the 2025–26 financial year, with third-party verification encouraged from 2026–27
• SEBI’s changes also anticipate stronger regulatory integration, including potential amendments to the Companies Act for ESG oversight at the board level
• A Parliamentary Standing Committee has recommended formalising ESG responsibilities for directors and introducing independent ESG committees, signaling potential legal reforms ahead
💬 One quote: “If ESG disclosures are limited to listed companies alone, we miss the broader picture. The regulator must ensure that the entire value chain adheres to the same ESG standards.” – Shubhashis Dey, Member, SEBI ESG Advisory Committee
📈 One stat: Under the new rules, ESG disclosures must now cover value chain partners responsible for at least 2% of purchases or sales, up to 75% of a company’s total trade value
See on illuminem's Data Hub™ the sustainability performance of Tata Steel and its peers: Adani Group, GAIL India Ltd.
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