In a significant policy development aimed at enhancing environmental transparency, the Government of India has mandated that all public limited companies must now disclose their supply chain emissions as part of their sustainability and financial reporting. This directive, issued jointly by the Ministry of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI), will come into effect from April 1, 2028, and will be integrated into the expanded Business Responsibility and Sustainability Reporting (BRSR Core) framework.

Under the new rules, listed public companies are required to report Scope 3 emissions, which include indirect greenhouse gas (GHG) emissions resulting from procurement, transportation, product usage, and end-of-life disposal associated with their value chains. These disclosures must be detailed, sector-specific, and verified by independent environmental auditors, in line with international standards such as the GHG Protocol and Task Force on Climate-related Financial Disclosures (TCFD). Companies must include this data in their annual BRSR filings and publish it on their official websites to ensure public accessibility and investor scrutiny.

To support implementation, the government will roll out guidance manuals, digital reporting templates, and a dedicated ESG Disclosure Helpdesk, while offering training sessions for sustainability officers and auditors. Non-compliance will attract penalties under the Companies Act and SEBI LODR Regulations, and may result in ESG rating downgrades or loss of eligibility for green financing instruments. Environmental analysts and institutional investors have widely welcomed the move, calling it a transformative step toward climate accountability, supply chain transparency, and alignment with global sustainability mandates. The rule is expected to reshape procurement practices, encouraging companies to work with vendors that also adhere to low-emission standards.