IEEFA Recommends Stronger Climate Transition Disclosures Under SEBI's BRSR

New Delhi, Jul 21 (KNN) The Institute for Energy Economics and Financial Analysis (IEEFA) has proposed a two-phase roadmap to strengthen climate transition disclosures under the Securities and Exchange Board of India's (SEBI) Business Responsibility and Sustainability Reporting (BRSR) framework.

In a report titled Strengthening BRSR for Climate Transition Plan Disclosures in India, IEEFA said the proposed reforms aim to improve transparency for investors and lenders while aligning Indian sustainability reporting with global frameworks such as the IFRS Sustainability Disclosure Standards and the Transition Plan Taskforce (TPT) framework.

Two-Phase Disclosure Framework Proposed

Under Phase 1, IEEFA has proposed a Transition Plan Snapshot Disclosure, which would reorganise existing BRSR information into a structured summary to provide investors with a clearer and more comparable assessment of companies' climate transition preparedness without creating significant additional compliance requirements.

Phase 2 proposes the introduction of 23 priority disclosure metrics in two stages, covering areas such as net-zero targets, climate scenario analysis, capital allocation for transition initiatives, Scope 3 emissions, value chain climate engagement and just transition planning.

According to the report, the first batch of 13 metrics consists largely of information already available with major companies, while the remaining metrics would be introduced as corporate reporting capabilities improve.

Phased Implementation Suggested

IEEFA recommended beginning implementation with companies in high-emission sectors among the top 500 listed entities, before gradually extending the requirements to the top 1,000 listed companies.

The report noted that although some leading Indian companies voluntarily disclose elements of climate transition planning, overall corporate reporting remains fragmented, backward-looking and insufficiently integrated with financial planning.

Supports Net-Zero And Sustainable Finance Goals

According to the report, the proposed framework would support India's updated Nationally Determined Contributions (NDCs) and help companies remain competitive in attracting global investment.

IEEFA said structured climate transition disclosures would also improve decision-making for investors and lenders, promote sustainable finance and support India's estimated USD 22.7 trillion investment requirement to achieve its 2070 net-zero emissions target.

(KNN Bureau)