Data Readiness for BRSR Core: What Value Chain Partners Must Do?

Starting FY 2025–26, listed companies must disclose details on the 9 Key Performance Indicators (KPIs) of the BRSR Core framework for their major value chain partners. If your company is a supplier or a distributor of goods or services to such entities, you may already be asked for this data. This blog highlights the key compliance actions value chain partners need to take to generate and share the required information.

What is the role of Value Chain Partners in BRSR Reporting?

Sustainability is a collective responsibility. Efforts by a handful of listed companies alone cannot mitigate the harmful effects of climate change. Over time, every business must adopt sustainable practices within its operations. With this in mind, SEBI has mandated the inclusion of BRSR Core KPIs relating to supply chain partners in the BRSR reports of listed entities. The intent is to build awareness and encourage smaller companies to adopt sustainability measures, creating a wider impact across the ecosystem. The compliance framework is being introduced through a phased glide path and is currently voluntary, allowing companies, along with their suppliers and distributors, adequate time to establish the necessary processes and controls.

9 KPIs of BRSR Core Framework

What Value Chain Partners Must Do?

For smaller companies, generating the data required under the BRSR Core framework may seem challenging. Yet, ignoring it could result in a direct loss of business from listed entities. At the same time, adopting these sustainability practices can unlock long-term cost savings and attract new customers. It is therefore prudent to take responsibility. The following step-by-step approach will help in generating the requisite data for BRSR Core:  

1. Implement the necessary policies in the company

This is the first and most critical step for any company. Preparing a policy and obtaining approval from the Board of Directors demonstrates recognition of the issue and signals commitment to stakeholders, thereby building trust. To generate the required data under the KPIs, companies must have clear policies and procedures in place on matters such as sexual harassment, cyber security, and others.

What are the necessary policies related to BRSR Core framework?

1. Anti-Bribery and Anti-Corruption Policy

2. Waste Management Policy

3. Health and Safety Policy

4. Prevention of Sexual Harassment of Women at Workplace (POSH) Policy

5. Data Privacy and Information Security Policy

2. Gain understanding of the GHG Protocol Corporate Standard

Calculating Greenhouse Gas (GHG) emissions is one of the most important yet challenging parts of the framework. Companies can either build basic knowledge of the GHG Protocol or take the help of experts to get this right. To make it easier, SEBI has introduced the Spend-Based Method, which helps companies quickly estimate their GHG emissions.

Spend Based Methodology for GHG Emissions

3. Liaison with waste recyclers and EOL Processors

BRSR Core places strong emphasis on data related to the management of operational waste generated by a company. It requires reporting quantitative details across eight distinct categories of waste, each separately disclosed. Managing this internally can be a challenging task, and companies are encouraged to engage professional service providers such as waste recyclers and End-of-Life processors. These partners handle collection, distribution, recycling, and disposal, ensuring not only reliable data for KPI 3 reporting but also the adoption of robust waste management practices for the company.

 4.   Develop internal procedures for collecting quantity data

Companies must establish internal systems and designate data stewards to capture key quantitative information, including:

a. Fuel usage in operations and company-owned vehicles, along with distance travelled by such vehicles (KPI 1).

b. Water inlet and outlet meter readings (KPI 2).

c. Electricity consumption recorded at various company meters (KPI 1).

d. Electricity sourced from renewable/non-renewable sources (KPI 3).

e. POSH complaints lodged, and complaints upheld (KPI 6).

f. Incidents of cyber security breaches and cases of customer data compromise (KPI 9).

Robust internal controls must be in place to validate the accuracy and reliability of this collected data.

5. Track Injury related absenteeism for LTIFR data

Lost Time Injury Frequency Rate (LTIFR) is a key metric for evaluating workplace safety. Companies must begin tracking absenteeism caused by workplace injuries, specifically recording the number of days employees are unable to report to duty after an incident. This data will form the basis for calculating total time lost due to injuries and will be used in determining LTIFR under KPI 5.

6. Purchase Distribution across Trading Houses, Related Parties, MSMEs & Small Producers

Company purchases—including all types of procurement such as raw materials, spares, services, and capex items—should be arranged supplier-wise in descending order of value, with each supplier categorized as Trading House, Related Party, MSME, or Small Producer. This classification will enable calculation of each category’s percentage contribution to total purchases, as required under KPIs 7 and 9.

7. Sales Distribution across Dealers/Distributors, Related Parties

Company sales across all products should be arranged customer-wise in descending order of value, with each customer classified as either Dealer/Distributor or Related Party. This categorization will help determine the percentage contribution of each group to total sales, as required under KPI 9.

8. Employee-wise Wages with Classification by Employment Type, Gender, and Location

The company’s Employee Benefit Expense must be aligned with the BRSR Core definition of wages, excluding retirement benefits, ESOPs, and staff welfare expenses for permanent employees. All employees should be classified by employment type (permanent/non-permanent), gender, and job location. This is essential because wages of non-permanent employees also count towards calculating the percentage of wages paid to females under KPI 6. Likewise, wages of both permanent and non-permanent employees must be included when determining the percentage of wages paid in small towns relative to total wages, as required under KPI 7.

Action Items for Value Chain Partners under BRSR Core

KPI 1 – Green House Gas Footprint

· Track fuel usage and distance travelled by company-owned vehicles.

· Record electricity consumption at each meter.

· Build understanding of the GHG Protocol or engage a consultant.

· Use SEBI’s Spend-Based Method for easier estimation.

KPI 2 – Water Footprint

· Install meters to record water inlet and outlet readings.

· Maintain logs for validation and reporting.

· Use SEBI’s Spend-Based Method for easier estimation.

KPI 3 – Energy Footprint

· Ascertain electricity consumption from renewable and non-renewable sources

KPI 4 – Waste Management Practices

· Develop / Review policy on Waste Management

· Engage professional recyclers/End-of-Life processors for collection, recycling, and disposal.

KPI 5 – Employee Wellbeing and safety

· Develop / Review policy on Employee Health and Safety

· Track absenteeism due to workplace injuries

KPI 6 – Gender Diversity in Business

· Develop /Review policy on Prevention of Sexual Harassment of Women at Workplace (POSH)

· Maintain records of POSH complaints filed and upheld.

· Ascertain Wages as defined in BRSR Core from Employee Benefit Expense (exclude retirement benefits, ESOPs, staff welfare).

KPI 7 and 9 – Inclusive Development and Openness of Business

· Arrange purchases (raw materials, services, spares, capex, etc.) supplier-wise in descending order of value.

· Categorize suppliers as Trading Houses, Related Parties, MSMEs, or Small Producers.

· Classify customers as Dealers/Distributors or Related Parties.

· Classify wages by employee category and job location.

KPI 8 – Fairness in engagement with Customers and Suppliers

· Policy on cyber security and data protection

· Track instances of cyber security breaches and cases of customer data compromise.