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Value Chain Disclosure (BRSR)

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Value chain disclosure under BRSR covers ESG performance of upstream and downstream partners contributing at least 2% of total purchases or sales by value.

Definition

Value chain disclosure under BRSR covers ESG performance of the entity’s significant upstream and downstream partners — extending the disclosure boundary beyond the entity’s own operations.

The framework was introduced via the SEBI BRSR Core circular dated 12 July 2023 (SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122) and refined in subsequent SEBI circulars.

Scoping rules

Per current SEBI guidance (subject to circular updates):

  • Value chain partner threshold — partners contributing at least 2% of the entity’s total purchases or total sales by value are within the value-chain partner population
  • Reporting limit — the listed entity may limit its disclosure to 75% of total purchases and 75% of total sales by value, ranked by partner exposure
  • The applicable framework has evolved across multiple SEBI circulars with phased timelines — entities must refer to the latest applicable circular for current effective dates and the precise mechanics

Verification

Value chain disclosures are subject to a separate assessment or assurance regime distinct from the BRSR Core reasonable-assurance scope. Per the December 2024 Industry Standards circular, listed entities may opt for either assessment or assurance for value-chain disclosures, per the standards developed by the Industry Standards Forum (ISF).

Operational implications

For listed entities, value-chain disclosure typically requires:

  1. Partner population mapping — identifying which suppliers and customers cross the 2%-by-value threshold
  2. Engagement infrastructure — outreach to in-scope partners for the prescribed BRSR Core attributes (commonly via supplier portal, supplier survey, or contractual data clauses)
  3. Data integration and reconciliation — combining partner-reported data with the entity’s own data
  4. Documentation of partner refusal or non-response — where in-scope partners do not cooperate

This is typically a multi-quarter operational programme rather than a single reporting-cycle exercise.