BRSR Reporting Timeline: What You Need to Do Before the Next Filing
With environmental, social, and governance (ESG) goals becoming central to sustainable business practices, it has become important to incorporate green corporate strategies. Today, multiple Indian businesses are in the process of aligning themselves with Business Responsibility and Sustainability Reporting (BRSR). It is important to note that the Securities and Exchange Board of India (SEBI) has updated the BRSR framework with a goal to promote transparency as well as accountability when it comes to sustainability. For companies that are prepping for the next filing, here is what these changes entail:
Key Updates for FY 2025-26
1. Value Chain Disclosures
SEBI requires the top 250 listed companies to report their ESG metrics covering 75% of their upstream and downstream value chains. This also entails suppliers as well as customers who contribute 2% or more to the company's purchases and sales by value. However, these changes are voluntary and SEBI has deferred mandatory reporting to FY 2025-26.
2. Assurance Requirements
Phased assurance mandates have been introduced by SEBI in order to ensure the transparency and credibility of these ESG disclosures. Starting FY 2023-24, the top 150 companies that are listed would be obtaining assurance on BRSR disclosures. This requirement will expand to the top 1,000 companies by FY 2026-27. However, businesses have been given the freedom to choose their third-party assessment or assurance for BRSR Core reporting, as per standards developed by the Industry Standards Forum (ISF) in consultation with SEBI. This is where Fitsol comes in. Fitsol can help companies comply with BRSR guidelines and reporting formats.
3. Extended Review Timelines
As there are predictable challenges, SEBI has extended the review period for ESG rating providers from 10 to 45 days following the publication of BRSR reports. This will help give businesses sufficient time for thorough evaluation and to improve operational efficiency.
Action Plan for Compliance
1. Begin Early with Data Collection and Stakeholder Engagement
Timely preparation is important. It is important to initiate data collection and stakeholder engagement promptly in order to meet reporting deadlines. This will help you identify data gaps, streamline workflows, as well as engage relevant stakeholders. This will also help you minimize last minute compliance delays.
2. Map Your Value Chain
SEBI mandates 75% coverage requirement for upstream and downstream value chain disclosures. This makes it integral for businesses to understand and analyze their supply chains. Start by mapping critical partners—especially those contributing 2% or more to your total purchases or sales. These stakeholders also need to begin gathering ESG data
3. Assurance Planning
Third party assurance is a big part of BRSR process. Select credible assurance providers early so that you can get the verification of disclosures done on time. Engaging with assurance providers in advance facilitates a smoother assurance process and helps in addressing any issues proactively.
4. Leverage Expertise
Partner with specialists like Fitsol to streamline data management and reporting processes. Fitsol offers comprehensive solutions, from real-time emissions tracking to data-driven decarbonization strategies, ensuring compliance and advancing your sustainability goals.
While you might feel that navigating through these BRSR requirements can be a complex process, Fitsol, a number one decarbonization partner can help simplify it. It offers end-to-end solutions to drive ESG reporting and enhance sustainability performance. Our expertise in real-time emissions monitoring, intelligent data analytics, and strategic decarbonization planning positions us to support your organization in achieving its ESG objectives effectively.