Capital markets regulator Sebi has proposed to include disclosure pertaining to the ‘Green Credit Program’ by listed companies under the Business Responsibility and Sustainability Reporting(BRSR) framework.
The Green Credits can be generated by a listed company and its value chain partners through plantations of trees on waste or degraded lands and river catchment areas.
In its consultation paper, Sebi has proposed that ‘green credits’ generated by the listed company and the value chain partners can be added as a leadership indicator under Principle 6 of BRSR, which states that businesses should respect and make efforts to protect and restore the environment.
“Inclusion in BRSR shall incentivise listed entities and their value chain partners to participate in the generation of green credits by following environmentally sustainable activities,” Sebi said.
The disclosure is also in line with the Ministry of Environment, Forest and Climate Change notification issued in February 2024.
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