Pheonix Ltd is among top 200 companies in terms of market capitalization of various companies listed on the stock exchanges. While discussing ESG disclosures in the Board meeting, CEO of the Company, asks Sini, the Compa

As per the SEBI's Master Circular dated November 11, 2024 amended vide SEBI's Circular dated March 28, 2025, ESG disclosures for the value chain shall be applicable to the top 250 listed entities (by market capitalization), on a voluntary basis from FY 2025-26 where for the first year of reporting ESG disclosures for value chain, reporting of previous year numbers shall be voluntary and the assessment or assurance shall be applicable on a voluntary basis from FY 2026-27. Disclosures for value chain shall be made by the listed company as per BRSR Core, as part of its Annual Report. For this purpose, value chain shall encompass the top upstream and downstream partners of a listed entity, individually comprising 2% or more of total purchases and sales (by value). However, the listed entity may limit disclosure of value chain to cover 75% of its purchases and sales (by value), respectively. If a listed entity provides ESG disclosures for value chain, then it shall disclose the percentage of total sales and purchases covered by the value chain partners, respectively, for which ESG disclosure are provided. Listed entities shall report the KPIs in the BRSR Core for their value chain to the extent it is attributable to their business with that value chain partner. Such reporting may be segregated for upstream and downstream partners or can be reported on an aggregate basis. The scope of reporting and any assumptions or estimates, if any, shall be clearly disclosed. In view of the above, since Pheonix Ltd is among Top 250 listed entities, ESG disclosures on value chain are applicable on a voluntary basis from FY 2025-26. On the basis of data given in the problem, percentage of total Purchases has been computed as under: Supplier Value (₹ in crore) % of Total Purchases A 300 30 B 200 20 C 150 15 D 100 10 E 50 5 F 30 3 G 20 2 H 10 1 Starting from the top Upstream partners, it can be observed that Suppliers A to G individually contribute 2% or more of total purchases and are in scope of ESG disclosures. However, cumulatively, Suppliers A to G contribute 98% of total purchases and hence, the Company may choose to limit disclosure to the top suppliers covering 75%, that is up to supplier D.