The Securities and Exchange Board of India (SEBI) rolled out significant changes to its Business Responsibility and Sustainability Reporting (BRSR) framework on 18th December 2024. These reforms are not merely procedural updates; they represent a paradigm shift in how organizations disclose their Environmental, Social, and Governance (ESG) metrics. At KathaVista, where storytelling meets impactful reporting, we see these updates as an excellent opportunity for organizations to create sustainability narratives that resonate deeply with their stakeholders.

What is the BRSR Framework?

The BRSR framework is SEBI’s initiative to standardize ESG reporting in India. It was introduced to provide investors and stakeholders with insights into how businesses integrate sustainability into their operations. The BRSR focuses on ESG parameters under nine principles, such as ethics, governance, environmental stewardship, and equitable resource distribution. These disclosures help businesses showcase their commitment to responsible growth while fostering transparency and trust.

The recent reforms to the BRSR aim to streamline compliance requirements while encouraging organizations to prioritize quality over quantity in their sustainability reporting. Let’s explore these changes in detail.

Decoding the Key Changes

1. Extended Timelines for Value Chain Disclosures

What Changed: The requirement for ESG disclosures related to the value chain has been deferred by one year. It will now apply from FY 2025-26 instead of FY 2024-25. Furthermore, assurance requirements for these disclosures have been extended to FY 2026-27.

What It Means: This extension gives companies more time to prepare their systems for tracking and reporting data along their value chains. Gathering comprehensive ESG metrics for suppliers, distributors, and other stakeholders can be complex and resource intensive. By allowing an additional year, SEBI ensures that organizations can adopt these measures without rushing, leading to more accurate and meaningful disclosures.

2. Voluntary Reporting for Value Chains

What Changed: Value chain disclosures are now voluntary, replacing the previous “comply-or-explain” model.

What It Means: Companies can decide how and when to disclose ESG data about their supply chain. This voluntary approach reduces the immediate compliance burden while enabling organizations to focus on areas most relevant to their operations.

3. Reduced Scope of Value Chain Reporting

What Changed: Companies must now disclose data only from their top upstream and downstream partners. These partners must individually account for at least 2% of the entity’s total purchases or sales, and disclosures should collectively cover 75% of purchases and sales by value.

What It Means: By narrowing the scope, SEBI ensures that companies concentrate on significant contributors to their value chains. This targeted approach reduces the workload and encourages companies to highlight their impact on core business partners.

4. Leadership Indicators for Green Credits

What Changed: A new indicator has been added to Principle 6 of the BRSR, requiring companies to disclose Green Credits generated or procured.

What Are Green Credits? These credits represent measurable reductions in carbon emissions or other environmental benefits, often used to offset a company’s environmental impact.

What It Means: This update incentivizes businesses to innovate and invest in sustainability practices. Highlighting Green Credits in reports allows companies to showcase their environmental leadership, aligning with India’s broader goals for reducing carbon emissions.

5. Optional Reporting of Previous-Year Data

What Changed: Companies are not required to disclose previous-year data for the first year of value chain reporting.

What It Means: This change provides flexibility for organizations implementing BRSR requirements for the first time, ensuring that historical data gaps do not become a roadblock.

6. Third-Party Assessments for Credibility

What Changed: SEBI now permits “assessment or assurance” for ESG disclosures. Assessments will involve third-party evaluations, following standards developed by the Industry Standards Forum (ISF) in consultation with SEBI.

What It Means: This shift increases flexibility while ensuring that reported data is credible and reliable. Independent assessments lend authenticity to ESG disclosures, boosting investor confidence.

Why These Changes Matter

Empowering Corporates

The phased implementation and voluntary approach allow companies to adopt these reforms without undue pressure. This empowers businesses to align their ESG strategies with long-term goals, rather than focusing solely on compliance.

Engaging Stakeholders

Transparency builds trust. These updates encourage companies to disclose meaningful data that resonates with stakeholders, including investors, employees, and customers. By focusing on the most relevant aspects of their value chains, businesses can create stronger narratives around their sustainability efforts.

Driving Competitive Advantage

As ESG becomes a global priority, Indian companies need to align with international standards to remain competitive. The revised BRSR framework positions Indian businesses to attract global investments by demonstrating their commitment to sustainability.

Implications for Sustainability Storytelling

SEBI’s BRSR reforms highlight the growing importance of ESG narratives in corporate reporting. For businesses, this is an opportunity to go beyond numbers and tell compelling stories about their sustainability journeys.

Turning Green Credits into Stories

Green Credits can become a focal point for showcasing a company’s environmental innovation. For example, a manufacturing company that invests in renewable energy could highlight how these efforts contribute to Green Credit generation and, ultimately, carbon neutrality.

Focusing on Value Chain Impact

Companies can create focused narratives about their influence on core business relationships by narrowing the scope to key upstream and downstream partners. For instance, a retail company could detail how it works with suppliers to improve waste management practices.

Building Trust Through Assessments

Third-party assessments enhance credibility. Companies can share stories about their partnerships with industry leaders or auditors, demonstrating their commitment to transparency and accountability.

How KathaVista Can Help

At KathaVista, we understand that sustainability reports are not just compliance documents—they are tools for engagement and inspiration. Here’s how we can help you leverage SEBI’s reforms to elevate your reporting:

• Data Simplification: We translate complex ESG metrics into clear, relatable insights.


• Narrative Crafting: Our team excels in turning regulatory disclosures into impactful stories.


• Visual Excellence: We create visually compelling reports that captivate stakeholders.


• Strategic Guidance: From Green Credits to value chain disclosures, we help you navigate SEBI’s requirements with ease.

Looking Ahead

The clock is ticking toward FY 2025-26, and proactive preparation is key. SEBI’s emphasis on phased compliance, leadership indicators, and credible assessments, announced on 18th December 2024, signals a future where sustainability reporting is as much about inspiration as it is about information.

With KathaVista by your side, your reports will meet regulatory standards and stand out as beacons of innovation and commitment.

Are you ready to redefine the art of reporting? Contact us to get started.