Fandoro Newsletter: January Edition

This edition explores pivotal sustainability trends reshaping global priorities, accompanied by Fandoro’s expert perspective. From SEBI’s updated BRSR Core framework for ESG reporting to India’s bold mandate for locally produced solar cells, we spotlight the key initiatives influencing the sustainability landscape.

We also focus on India’s Digital Personal Data Protection Act, 2023, and the Rules of 2025, which establish a robust regulatory framework for safeguarding personal data in the digital age, along with insights on how businesses can ensure compliance.

At Fandoro, we’re excited to introduce new platform features designed to enhance your organization’s sustainability efforts.

Read on to discover more about these developments and their impact on your sustainability journey.

Global Sustainability Updates – Key Developments from Around the World

1. Fostering Sustainability: Exploring the Ease of Business with BRSR

Fandoro’s View - SEBI’s amendments to the BRSR Core framework mark a significant shift in ESG reporting practices for Indian businesses. Previously, value chain disclosures required immediate assurance, creating challenges for companies with complex supply chains. The new framework offers flexibility by deferring mandatory assurance for value chain disclosures to FY 2026-27 while making them voluntary until FY 2025-26. This phased approach gives companies time to establish robust data collection and assurance mechanisms.

The expansion of the disclosure scope to cover 75% of purchases and sales by value represents a more comprehensive approach to supply chain sustainability. The introduction of the Carbon Accounting Proxy (CAP) methodology simplifies emission estimation, particularly for businesses lacking granular data. Additionally, integrating green credits incentivizes environmental restoration, aligning with national tree plantation initiatives. These changes not only reduce compliance pressure but also encourage meaningful corporate participation in sustainability efforts, signalling a more pragmatic regulatory direction from SEBI.

Source: https://www.sebi.gov.in/media-and-notifications/press-releases/dec-2024/sebi-board-meeting_90042.html or https://www.sebi.gov.in/legal/circulars/dec-2024/industry-standards-on-reporting-of-brsr-core_90091.html

2. SBTi Updates Decarbonization Frameworks for Oil, Gas, Chemicals, and Power Sectors to Align with 1.5°C Climate Goals

Fandoro’s View - The Science Based Targets initiative’s (SBTi) updates set a clear pathway for aligning these high-emission industries. Together, these sectors contribute over 70% of global greenhouse gas emissions, with the oil and gas industry alone responsible for nearly 85% of CO? emissions. The updates introduce sector-specific methodologies, emphasizing methane emissions reductions—key since methane has 80 times the warming potential of CO? over 20 years—and the integration of low-carbon technologies like green hydrogen and renewable energy.

For businesses, this signals the need for capital-intensive shifts,such as transitioning to renewable feedstocks, upgrading grid infrastructure, and adopting advanced leak detection systems. Investors are likely to view these updates as a litmus test for long-term resilience, favouring companies that embed sustainability into their operations. Companies that fail to act risk financial penalties, stranded assets, and reputational harm as regulatory scrutiny tightens and markets shift towards sustainable solutions. On the upside, proactive businesses stand to attract $1.6 trillion in green financing expected by 2030, build competitive advantage, and solidify stakeholder trust. These frameworks are a call to action for innovative, scalable climate solutions across industries.

Source: https://sciencebasedtargets.org/news/sbti-updates-plans-for-three-sectoral-standards-oil-and-gas-chemicals-and-power

3. Sustainable Packaging: Council Signs Off on New Rules for Less Waste and More Re-use in the EU

Fandoro’s View - The EU has taken a significant step by adopting new regulations on packaging and packaging waste, marking a shift from the previous framework, which had limited success in reducing environmental impacts. The new rules set binding re-use targets, restrict single-use plastic packaging and require a minimum percentage of recycled content in packaging materials. Previously, the EU Packaging and Packaging Waste Directive, adopted in 1994 and revised multiple times, failed to effectively tackle the growing waste problem. Now, with these updated regulations, the EU aims for a drastic reduction in packaging waste, with binding re-use targets like 40% for transport and sales packaging by 2030. These changes will drive industries to rethink packaging designs, making them more sustainable, recyclable, and aligned with circular economy principles. The regulation’s impact will be widespread, reducing waste, curbing plastic pollution, and setting a clear path for businesses to adopt more sustainable practices by 2040.

Source: https://www.consilium.europa.eu/en/press/press-releases/2024/12/16/sustainable-packaging-council-signs-off-on-new-rules-for-less-waste-and-more-re-use-in-the-eu/?

4. India Mandates Use of Locally Made Solar Cells in Clean Energy Projects from June 2026

Fandoro’s View - In a strategic step to strengthen its domestic solar manufacturing industry, India has mandated the use of locally made solar cells in clean energy projects starting from June 2026. This regulation builds on earlier efforts but takes a decisive approach to reduce dependency on imports, especially from China, which accounted for 62.6% of India's solar imports, valued at $3.89 billion in 2023. The mandate aims to address trade imbalances, accelerate local production, and meet the rising demand for 40 GW of solar cells annually by 2026.

The policy's impact will be transformative, driving investments, creating 50,000 jobs, and fostering innovation within India’s solar sector. It also aligns with the country’s ambitious 500 GW renewable energy target by 2030, contributing to energy security, reducing carbon emissions, and advancing India's clean energy transition. By reducing reliance on external supply chains, this move positions India to lead in sustainable energy development while bolstering its economy and environmental goals.

Source: https://energy.economictimes.indiatimes.com/news/renewable/india-mandates-use-of-locally-made-solar-cells-in-clean-energy-projects-from-june-2026/116169279?

Regulatory Announcement: Navigating the Digital Personal Data Protection Act, 2023 & Rules, 2025

This is a landmark legislation to establish a comprehensive framework for safeguarding personal data in digital formats. This Act aims to protect individual privacy while facilitating data processing for lawful, legitimate, and specified purposes. It provides clear guidelines for the collection, storage, processing, and sharing of personal data.

Why Was the DPDP Act Introduced?

The introduction of the DPDP Act addresses several critical needs:

1. Digital Transformation: With the rapid digitalization of services across India, vast amounts of personal data are generated, necessitating a robust regulatory framework to manage data processing.
2. Legal Vacuum: India lacked a standalone data protection law. The Information Technology Act, 2000 provided limited safeguards, which were insufficient to address modern-day privacy challenges.
3. Global Standards: To align with global data protection norms (e.g., GDPR in the EU) and foster trust in international digital trade, India required a robust data protection framework.
4. Data Breaches and Misuse: Increasing incidents of data breaches, identity theft, and misuse of personal information highlighted the urgency for comprehensive data protection laws.

Background and Current Status

The Ministry of Electronics and Information Technology (MeitY) released the draft Bill for public consultation. After cabinet approval in July 2023, the Bill was passed in Parliament, and the Act was formally enacted on August 11, 2023.

Key Highlights:

• The Act regulates digital personal data, including offline data that is later digitized, ensuring broad applicability.
• It emphasizes principles like consent, data minimization, and security while aligning with global standards.
• On January 3, 2025, MeitY released the Draft DPDP Rules, 2025, inviting public feedback until February 18, 2025.

Implementation Timeline:

The Act will be enforced in phases over the next 6–12 months, following the establishment of an independent regulatory agency and finalization of detailed rules.

Implications for Businesses

The DPDP Rules introduce several obligations for businesses, referred to as Data Fiduciaries, to ensure responsible handling of personal data. Key requirements include:

1. Consent Management: Businesses must secure clear and informed consent from individuals (Data Principals) before processing personal data.
2. Data Minimization and Storage Limitation: Organizations must collect only necessary data and erase it once its purpose is fulfilled.
3. Data Security: Adequate security measures must be implemented to prevent breaches, with mandatory notifications for affected parties in case of a breach.
4. Children's Data Protection: Processing personal data of children (under 18) requires parental consent and prohibits profiling or targeted advertising.
5. Grievance Redressal: Businesses must establish mechanisms to address grievances related to data processing activities.

Compliance Measures for Businesses

To align with the DPDP Act, businesses should:

• Review Policies: Update data protection policies to reflect the Act’s provisions.
• Implement Consent Mechanisms: Develop systems to manage and enable the withdrawal of consent.
• Enhance Data Security: Adopt measures like regular security assessments and staff training.
• Prepare for Breach Response: Establish protocols for detecting, reporting, and mitigating breaches.
• Ensure Children's Data Compliance: Adhere to specific requirements for processing children’s data.

The Way Forward

As the DPDP Act comes into force, businesses must prioritize compliance to avoid penalties and reputational risks. Engaging with legal and data protection experts, coupled with staying informed on future guidelines, will ensure a seamless transition to the new regulatory landscape.

The Digital Personal Data Protection Act, 2023 is a pivotal milestone in India's data protection journey, emphasizing the need for businesses to uphold privacy rights and build trust in the digital economy.

Want to know how the DPDP Rules impact your business? Contact us at [email protected].

What’s New at Fandoro?

• Multi-Location and Subsidiary Entities Access: Centrally manage ESG data across multiple locations and subsidiaries, ensuring seamless collaboration and consistent performance tracking.
• Customized ESG Metrics by Industry: Align your ESG metrics with industry-specific priorities to address unique challenges and maximize impact.
• NGO Collaboration with Businesses: Connect with NGOs to implement impactful social and environmental initiatives that align with your organizational goals.
• Pre-screening and Categorization: Pre-screening and categorization of potential investments to determine a "go/no-go" decision on investment and ESG due diligence.

These cutting-edge features are designed to elevate your ESG strategy, streamline operations, and strengthen your commitment to sustainable development.

Looking Ahead – The Future of Sustainability with Fandoro

At Fandoro Technologies, we believe sustainability drives growth, innovation, and meaningful impact, and we are committed to helping organizations navigate ESG challenges, unlock opportunities, and build a sustainable future through customized solutions like ESG due diligence, impact assessments, SDG integration, and along with AI-powered tools that streamline reporting and strengthen stakeholder engagement.

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