The Securities and Exchange Board of India issued a formal framework for the issuance and listing of ESG-labelled debt securities on 5 June 2025, extending regulatory oversight to sustainable debt instruments beyond the existing green bond guidelines. The framework applies to debt securities marketed under social, sustainability, and sustainability-linked labels, and mandates detailed use-of-proceeds disclosure alongside independent verification requirements designed to counter greenwashing and purpose-washing risks.
The new framework requires issuers to demonstrate a clear and auditable link between the proceeds of any ESG-labelled instrument and the stated environmental or social objectives at the point of issuance and on an ongoing reporting basis.
CORPORATE SUSTAINABILITY REPORTING
Separately, SEBI already requires the top 1,000 listed entities in India to file Business Responsibility and Sustainability Reports, a mandate in force since 2022-23. A subset of key metrics under the BRSR Core, including greenhouse gas emissions, water and gender diversity data, is subject to third-party assessment or assurance, phased in by market capitalisation.
The top 250 listed entities may disclose the sustainability performance of their value chains on a voluntary basis for 2025–26, with assessment or assurance of those disclosures also voluntary from 2026–27. A de minimis exemption applies for suppliers or customers that account for less than 2% of an entity's purchases or sales.