Lok Sabha Question No. 1267 (UNSTARRED), answered on 2025-07-28
Subject: Steps to Align ESG Norms with Global Network
Ministry: CORPORATE AFFAIRS
Asked by: Shri Amrinder Singh Raja Warring

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 1267

ANSWERED ON MONDAY, July 28, 2025/Sravana 6, 1947 (Saka)

## STEPS TO ALIGN ESG NORMS WITH GLOBAL NETWORK

## QUESTION

1267.   SHRI AMRINDER SINGH RAJA WARRING:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a)  whether  the  Government  plans  to  make  BRSR  (Business  Responsibility  and Sustainability Report) mandatory for non-listed companies above a threshold turnover;
- (b) the steps being taken by the Government to align India's ESG norms with global frameworks like ISSB or EU-CSRD;
- (c)  the  mechanisms  put  in  place  to  monitor  greenwashing  in  corporate  ESG disclosures; and
- (d) whether the Government has launched capacity-building programmes for SMEs on sustainability compliance;

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS   AND MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS [SHRI HARSH MALHOTRA]

(a)  &  (b)  No  Sir.  The  National  Voluntary  Guidelines  on  Social,  Environmental  and Economic  Responsibilities  of  Business' (NVGs)  were  revised  by  MCA  and  new principles called the National Guidelines on Responsible Business Conduct (NGRBCs) were released in March, 2019. Subsequently, the Ministry of Corporate Affairs (MCA) constituted a Committee on Business Responsibility Reporting, of which SEBI was a member, for finalizing sustainability reporting formats, based on the framework of the NGRBCs. Based on the recommendations of the Committee, extensive stakeholder consultation,  in  2021,  SEBI  mandated  the  top  1000  listed  companies  (by  market capitalization)  to  make  ESG  disclosures  as  per  the  Business  Responsibility  and Sustainability Reporting (BRSR) from FY 2021-22 on a voluntary basis and mandatorily from FY 2022 - 23. The remaining listed entities, including the entities which listed their specified securities on the SME Exchange, may voluntarily disclose the Business Responsibility and Sustainability Report. The Committee, in its report, had inter-alia taken  note  of  international  reporting  frameworks  as  well  as  global  trends  in sustainability reporting. At the same time, needs of India's specific socio -economic and environmental challenges were kept in mind while formulating BRSR and therefore BRSR allows for inter-operability with internationally accepted reporting frameworks i.e. those listed entities which prepare and disclose sustainability reports (as part of annual  report)  based  on  internationally  accepted  reporting  frameworks  can  crossreference the disclosures made under such framework to the disclosures sought under the BRSR. Further, in case the data sought in the reporting format is already disclosed in the annual report, the listed entity can provide a cross-reference to the same.

(c) In order to mitigate risks of greenwashing, vide circulars dated July 12, 2023 and March 28, 2025, SEBI has introduced BRSR Core, which contains a limited set of critical / core Key Performance Indicators (KPIs), for which listed entities shall need to obtain assurance/ assessment, as per the specified glide path beginning with the top 150 listed entities (from FY 2023 -24), top 250 listed entities (from FY 2024-25), top 500 listed entities (from FY 2025-26) and applicable to the top 1000 listed entities from FY 2026-27. Further, SEBI has also introduced ESG disclosures for the value chain of top250 listed entities on a voluntary basis from FY 2025 - 26 and assurance/ assessment of the same on a voluntary basis from FY 2026 - 27.

SEBI vide (i) circular dated February 03, 2023 prescribed certain dos and don'ts that an issuer of green debt security must ensure to avoid the occurrence of greenwashing and (ii) circular dated February 06, 2023, inter-alia, specified appointment of a third party reviewer/ certifier for a green debt security for post-issue management of the use of proceeds from the green debt security and verification of the internal tracking and impact reporting. The said requirement of appointing a third party reviewer/ certifier is applicable on a 'comply or explain' basis for a period of two years from April 01, 2023. These provisions are now incorporated in Chapter IX-A and Chapter IX respectively of the Master Circular for issue and listing of Non-convertible Securities, Securitised Debt Instruments,  Security  Receipts,  Municipal  Debt  Securities  and  Commercial  Paper dated May 22, 2024.

Furthermore,  in  December  2024,  Industry  standards  on  BRSR  Core  have  been formulated by the Industry Standards Forum ('ISF') comprising of representatives from three  industry  associations,  viz.  ASSOCHAM,  CII  and  FICCI,  under  the  aegis  of  the Stock Exchanges, in consultation with SEBI. The standards aim to facilitate effective implementation  of  the  disclosure  requirements  under  BRSR  Core,  promote  ease  of doing  business  and  bring  about  standardization  in  implementation  of  BRSR  Core. Moreover, to increase transparency, as per BRSR Core, ESG disclosures for the value chain have been introduced for the top 250 listed entities (by market capitalization), on a comply-or-explain basis from FY 2024-25. The limited assurance of the same shall be applicable on a comply-or-explain basis from FY 2025 - 26.

(d) The Ministry of MSME implements the World-Bank supported Central Sector Scheme 'Raising  and  Accelerating  MSME  Performance' (RAMP).    Under  the  aegis  of  this scheme, capacity building programmes and workshops are being organized for MSMEs, Industry Associations, State Government officials and other stakeholders in Environmental, Social and Governance compliance.   State/UT Governments have also been provided grants under RAMP for conducting ESG Workshops.

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