India's Sebi mandates stricter ESG disclosures: vague climate commitments will no longer pass muster

Amarjeet Singh, whole-time member of India's Securities and Exchange Board (Sebi), states that vague climate and sustainability commitments will no longer be acceptable for listed companies. In an interview with Business Today, Singh explains that climate risk is now a financial risk that affects business models, asset valuations, and long-term growth. Sebi has mandated sustainability disclosures through the BRSR framework for the top 1,000 listed entities and is pushing for consolidated data and sector-specific reporting to improve decision-usefulness for investors. Sebi has also implemented a framework for ESG debt securities including green, social, and sustainability-linked bonds, aiming to create credible channels for capital directed toward sustainable outcomes. The regulator is working on rules for ESG rating providers as well. Singh emphasizes that the BRSR framework is not static and will evolve with market maturity, investor needs, and global developments while staying grounded in Indian realities.