ESG compliance becoming key to supply-chain competitiveness, says expert

New Delhi: Environmental, Social and Governance (ESG) compliance is no longer limited to large listed companies, and is increasingly becoming essential for businesses seeking to remain competitive in domestic and global supply chains, sustainability expert Anuj Mathur said.

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Mathur, founder of city-based Centre for Sustainable Governance Advisory (CSGA), told reporters here that SEBI data showed only a handful of companies in Rajasthan were complying with BRSR norms.

The Business Responsibility and Sustainability Reporting (BRSR) framework under the Securities and Exchange Board of India (SEBI) mandates ESG disclosures for listed companies in a standard format.

He said large companies were increasingly asking suppliers, including small and mid-sized manufacturers, to provide data on emissions, labour, water use and other sustainability parameters.

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"ESG is becoming the basic price of entry into serious supply chains," Mathur said.

He said companies should track sustainability data throughout the year instead of treating BRSR as a year-end compliance exercise.

Credible ESG data would increasingly influence access to green financing and international contracts, besides determining the competitiveness of Indian manufacturers in markets such as Europe, he said.

Mathur said Rajasthan's small manufacturers would also need to strengthen their ESG reporting systems as global sustainability and carbon-related requirements become stricter.

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