ESG Compliance in India: Meaning, Benefits, Audit Process and Reporting Guide
ESG Value Chain Reporting
Supply-chain ESG reporting has become an important development for Indian businesses.
SEBI's current framework makes ESG disclosures for the value chain voluntary for the top 250 listed entities from FY 2025-26. Associated assessment or assurance is also voluntary.
For companies choosing to report value-chain information, SEBI defines the relevant scope around significant upstream and downstream partners. Partners individually accounting for 2% or more of purchases or sales by value may fall within the identified scope, while reporting entities can limit coverage to 75% of purchases and sales respectively.
This development is particularly important for MSMEs and private manufacturers.
Even when a supplier does not directly fall under mandatory BRSR requirements, its listed customer may request ESG information from it.
Developing basic ESG data systems today can therefore make it easier to respond to customer sustainability questionnaires in the future.
Conclusion
ESG compliance in India is becoming increasingly important as regulators, investors, lenders and corporate customers demand more reliable sustainability information.
For India's top listed companies, BRSR has already created a structured reporting framework. For private businesses, exporters and MSMEs, ESG preparedness can help meet supply-chain expectations and prepare the organisation for future sustainability requirements.
The key is to start with reliable data.
Businesses should measure their energy, emissions, water, waste, workforce and governance performance systematically and maintain supporting documentation throughout the year.
Green Permits helps Indian businesses develop practical ESG and sustainability compliance systems, including ESG gap assessments, environmental compliance reviews, carbon accounting, BRSR support and sustainability reporting.
Need Help with ESG Compliance, BRSR or Sustainability Reporting?
Website: https://www.greenpermits.in
Phone: +91 78350 06182
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