No, the green credits line in the BRSR is voluntary. A SEBI circular dated 28 March 2025 introduced a voluntary green credits disclosure indicator from financial year 2024-25, covering green credits generated or procured by the listed entity. It is a disclosure line, not an obligation to acquire anything.
Green credits entered the Business Responsibility and Sustainability Report through the same circular that eased the value chain requirements, and the two changes are often confused with each other.
What was introduced
The SEBI circular dated 28 March 2025 added a voluntary green credits disclosure indicator, applying from financial year 2024-25. It covers green credits generated or procured by the listed entity. Coverage extends to the top ten value chain partners from financial year 2026-27.
The two things it is not
- It is not a requirement to obtain green credits. The indicator asks an entity to disclose credits it generated or procured. An entity that generated and procured none discloses that position.
- It is not part of the assurable BRSR Core set. BRSR Core comprises nine defined attributes, and green credits is not among them, so this line does not attract the reasonable assurance or third-party assessment requirement.
Where it sits relative to other instruments
Green credits are distinct from the emissions accounting that drives the greenhouse gas footprint attribute of BRSR Core. Disclosing procured green credits does not alter reported Scope 1 or Scope 2 emissions, which are measured per the GHG Protocol Corporate Accounting and Reporting Standard. Presenting credits as a reduction against those figures would misstate the emissions attribute.
Reading the disclosure
Because the line is voluntary, an absent green credits disclosure carries no compliance implication. It indicates only that the entity chose not to report on an optional indicator.
Sources: SEBI circular, 28 March 2025
The BRSR guide covers the voluntary indicators. BRSR reporting services covers disclosure decisions for listed entities.