May 19, 2024
How to implement BRSR Core across your supply chain?

SEBI's Business Responsibility and Sustainability Reporting (BRSR) mandate has taken a significant step forward. While the top 1000 companies have been required to file BRSR reports for the past two years, this year brings an expansion of the initiative. Now, the top 250 companies must also include the top 75% of their supply chain partners in the reporting process by requiring them to complete the BRSR Core questionnaire. This presents a unique opportunity for companies to collaborate with their suppliers and promote sustainability throughout their entire supply chain. And it’s not only the regulators, even customers and investors looking at a company’s sustainability disclosures have started requiring supply chain engagement. 

However, navigating this new requirement can be complex. This blog will guide you through implementing BRSR Core amongst your value chain partners, establishing a robust value chain sustainability program, and fostering a long-term vision for environmental and social responsibility.

What is BRSR Core?

Is SEBI's BRSR Core reliable and effective? - either/view

The BRSR Core is a sub-set of the BRSR, consisting of a set of Key Performance Indicators (KPIs) under 9 ESG attributes:

  1. Green-house gas (GHG) footprint
  2. Water footprint
  3. Energy footprint
  4. Embracing circularity - details related to waste management
  5. Enhancing Employee Wellbeing and Safety
  6. Enabling Gender Diversity in Business
  7. Enabling Inclusive Development
  8. Fairness in Engaging with Customers and Suppliers
  9. Open-ness of business

How to Build an Effective Supply Chain Sustainability Program

Supply Chain Sustainability: Why Is it Important for Your Business?

Integrating BRSR Core into your supplier management strategy requires a structured approach. Here are some key steps to consider:

  1. Supply Chain Sustainability Strategy: The first step is to create a holistic supply chain sustainability strategy. Before you roll out the assessments amongst your suppliers, consider the supply chain sustainability requirements from your customers and investors or Ecovadis as well. You can also include the principles from your Sustainable Procurement Policy and Supplier Code of Conduct.
  1. Build Alignment: Build alignment with your suppliers by providing them training on your supply chain sustainability strategy and their role in it. BRSR Core requires your suppliers to provide  Scope 1 and 2 emissions data - that can be a technical topic. Build a partnership with them to guide them through the technicalities of ESG. 
  1. Share Assessments: For the purpose of the BRSR Core you need annual data from your suppliers, so ensure you roll out the assessments accordingly. You should also give your suppliers atleast a month to share a correct and complete response.
  1. Dialogue: Don’t end the engagement as soon as you receive the response. Build a dialogue to identify ways in which your suppliers can improve their performance year on year. If they don’t have processes to capture any particular type of ESG data, guide them through it. 

Best Practices

5 sustainable practices to follow for an eco-friendly environment, ET  HealthWorld

1. Communication and Collaboration

  • Clearly communicate the BRSR mandate and its implications to your supply chain partners. Explain the BRSR Core questionnaire and its purpose.
  • Provide training and support to your suppliers to help them understand the BRSR Core questions, especially the technical topics of Scope 1 and 2 emissions and how to complete them accurately.
  • Establish open communication channels to address any questions or concerns your suppliers may have.

Phased Approach

  • Don’t limit your supply chain sustainability strategy to the top 75% of your suppliers, extend it to your entire supply chain over time. 

Leveraging Technology Platforms

  • Award winning platforms like the Oren Sustainability Hub can streamline the BRSR Core implementation process. These platforms offer features such as:some text
    • Online assessment management: These platforms can act as a single source of truth of all your supplier’s sustainability data. Suppliers can access and complete the BRSR Core questionnaire through the platform itself without the need for you to circulate and collect multiple excel sheets.
    • Data collection and analysis: These platforms can aggregate and analyse data from suppliers, providing valuable insights into your overall supply chain sustainability performance.
    • Integrated reporting: You will just need one platform to create your company’s BRSR report and collect BRSR Core data from your suppliers, simplifying compliance processes.
    • Ease for suppliers: These platforms are extremely easy to use, not only for you but also for your suppliers as they simplify complex topics like Scope 1, 2 and 3 emissions, water intensity, waste intensity etc. 

Incentivizing Participation

  • Explore ways to incentivize your suppliers to actively participate in the Supply Chain Sustainability program. This could involve offering early payment discounts, extending contract lengths, or providing access to training resources.
  • Recognize and reward suppliers who demonstrate strong sustainability practices.

Continuous Improvement

  • Regularly review and update your implementation strategy based on feedback from suppliers and your own assessments.
  • Use the data collected through the program to identify areas for improvement within your own operations and those of your suppliers.

The Oren Sustainability Hub is built for companies of all sizes. Our team of supply chain sustainability experts will create a custom supply chain sustainability program for your company and assist you in executing it throughout your supply chain. The platform will assist you to manage real-time data and work towards supplier performance improvement.

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