capital market regulator SEBI has proposed to impose disclosure rules regarding ‘green credit’ program for listed companies. This proposal has been made under the Business Responsibility and Environment-Friendly Reporting Initiative (BRSR). Companies can generate ‘green credit’ by planting trees in barren lands and river catchment areas. The Securities and Exchange Board of India (SEBI) in its consultation paper has said that ‘green credits’ earned by the listed company and the value chain participant can be added as a stewardship indicator under Principle Six of the BRSR.
will help save the environment
This provision states that companies must take steps to conserve and restore the environment to its original state. “Joining the BRSR will incentivize listed entities and their value chain partners to participate in the generation of green credit by pursuing environment-friendly sustainable activities,” Sebi said. And in accordance with the notification of the Ministry of Climate Change. Further, SEBI has proposed to redefine ‘value chain participant’. Under this, the production and distribution partners of the listed entity will now need to be included.
Ask for suggestions from people till June 12
Also, individuals holding two percent or more stake in the purchase or sale of the listed entity by value will also be included. It will be voluntary for listed companies to make ESG (environmental, social and corporate governance) disclosures about value chain partners for the first time in their annual reports for FY 2024-25. Based on the recommendations of an expert committee headed by SK Mohanty, former whole-time member, SEBI, these proposals are aimed at facilitating ease of doing business under the BRSR framework. SEBI has sought suggestions from people on the proposals till June 12.
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