SEBI Eases Timeline for ESG Rating Reviews Post-BRSR Publication

SEBI has relaxed the timeline for ESG rating reviews following the release of Business Responsibility and Sustainability Reporting (BRSR). ESG Rating Providers now have up to 45 days for review post-BRSR publication. SEBI acknowledges operational challenges and adjusts the framework to ensure compliance remains manageable.

The Securities and Exchange Board of India (SEBI), in a move to facilitate smoother business operations, announced a relaxation in the timeline for ESG (Environmental, Social, and Governance) rating reviews after the publication of Business Responsibility and Sustainability Reporting (BRSR).

ESG Rating Providers (ERPs) are now required to conduct a review of ESG ratings no later than 45 days after the BRSR publication. This extension follows a representation by ERPs regarding operational challenges in adhering to the initially tight 10-day timeframe.

The immediate applicability of this framework aligns with SEBI's decision last December to defer ESG disclosure deadlines for value chain partners, allowing a transition from voluntary ESG reporting to the comprehensive 'comply-and-explain' approach by FY26.

(With inputs from agencies.)