In a major move that underscores India’s commitment to sustainable growth, the Securities and Exchange Board of India (SEBI) has now included Green Credits disclosure in the Business Responsibility and Sustainability Reporting (BRSR) framework. This integration marks a significant step toward mainstreaming sustainability performance within corporate India.

The BRSR, introduced by SEBI in 2021, mandates India’s top 1,000 listed companies to disclose their ESG performance across nine principles aligned with the National Guidelines on Responsible Business Conduct (NGRBC). The introduction of green credits into this framework signals a pivotal shift:

• Enhanced accountability: Companies will now need to disclose their participation in green credit-generating activities, bringing more transparency to their environmental claims.
• Strategic integration: It encourages corporates to align sustainability with business strategy by incentivizing measurable environmental outcomes.
• Investor confidence: ESG-focused investors gain deeper insights into companies’ environmental impact, helping them make more informed decisions.

Why It Matters?

India has committed to achieving net-zero emissions by 2070. Initiatives like green credits not only catalyze innovation and green entrepreneurship but also provide a credible, trackable mechanism for corporates to contribute to national sustainability goals.

The integration into BRSR ensures that environmental contributions are not just token gestures but are documented, reported, and evaluated alongside financial metrics—thereby leveling up the ESG narrative in India.

What’s Next?

With the policy ecosystem evolving, corporates may soon look at building internal green credit strategies, investing in regenerative projects, and leveraging technology to track and report these efforts.