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illuminem summarises for you the essential news of the day. Read the full piece on Responsible Investor or enjoy below:
🗞️ Driving the news: India’s Securities and Exchange Board (SEBI) is undertaking a review of its ESG disclosure requirements for listed companies, a move welcomed by domestic asset managers as “pragmatic and forward-thinking”
• The review aims to address concerns about the complexity and feasibility of current rules, particularly for smaller firms and supply chain reporting obligations.
🔭 The context: Since 2022, SEBI has mandated ESG disclosures for the top 1,000 listed companies. In 2023, it extended requirements to the top 250 firms to report on 75% of their supply chains by FY2025–26. • However, industry feedback highlighted challenges in meeting these obligations, leading SEBI to delay implementation and now reconsider the framework
🌍 Why it matters for the planet: India's reassessment of ESG disclosure rules reflects a global trend of balancing robust sustainability reporting with practical implementation. Ensuring accurate and meaningful • ESG disclosures is vital for investors and stakeholders to assess corporate sustainability performance and risks effectively
⏭️ What's next: SEBI's review, set to commence next month, will focus on creating a more nuanced and capacity-building approach to ESG disclosures
• This includes potentially easing requirements for smaller companies and providing adequate time for firms to develop accurate measurement capabilities
• The outcome may lead to revised guidelines that maintain transparency while being attainable for a broader range of companies
💬 One quote: "The disclosures have to be honest disclosures and there has to be a capacity to measure (accurately). Because if they turn out to be only paper disclosures or false disclosures, then it is going to create another set of problems." — Tuhin Kanta Pandey, SEBI Chairman
📈 One stat: India has mandated ESG disclosures from the top 1,000 listed companies by market capitalisation ... –23, with plans to extend supply chain reporting to the top 250 firms covering 75% of their supply chains by FY2025–26
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