Sebi Postpones ESG Disclosure Deadline to FY26

The Securities and Exchange Board of India (Sebi) has delayed the mandatory ESG disclosure for value chain partners of listed companies by one year, now set for FY26. This change allows businesses to better adapt to the Business Responsibility and Sustainability Reporting requirements, encouraging a sustainable business environment.

The Securities and Exchange Board of India (Sebi) has announced a one-year deferral for the mandatory ESG disclosure deadlines for value chain partners of listed companies. Originally set for FY25, the new deadline is now FY26, providing businesses with additional time to comply with the Business Responsibility and Sustainability Reporting (BRSR) requirements.

The decision, approved on Wednesday, shifts ESG reporting from a 'comply-and-explain' status to a voluntary basis until FY26. Sebi's board has also instituted several relaxations and updates to ESG disclosures, focusing on easing the regulatory burden on companies and fostering a business-friendly environment.

This phased approach aims to strike a balance between immediate action and adaptability, as noted by Smitha Shetty, Regional Director, APAC, at Achilles Information. The initiative encourages companies to foster sustainability across their value chains, thereby contributing to a greener future for India.

(With inputs from agencies.)