About ESG Ratings

Our ESG ratings provide an opinion on the issuer's ESG performance by assessing its exposure to ESG risks, impact on environment and society, its internal governance factors, and ability to manage such ESG risks and opportunities over the medium term. ESG Ratings are assigned on a scale of 0 to 100.

The assessment is based on a proprietary framework comprising over 500 key performance indicators (KPIs) for each rated entity. The rating considers all material ESG parameters in the relevant sector and how well these are managed by the rated entity compared with peers. It involves cross-sector, relative benchmarking of entities operating in India using domestic benchmarks and considering relevant global best practices.

For a parameter to be considered 'material', filters are applied from both risk (how it may negatively impact a company's financial risk and return profiles) and impact (how it may impact the country’s ESG landscape) perspectives.The assessment is based on quantitative and qualitative disclosures made by the company.

In line with SEBI ERP Regulations, Crisil ESG Ratings & Analytics Ltd also offers Core ESG Rating, based on an assessment of third-party assured (BRSR Core disclosures) or audited data disclosed by the rated entity.

The rating exercise also embeds a transition assessment* by evaluating the track record of the company in addressing ESG risks and its initiatives aimed at improving ESG risk management.

ESG ratings and Core ESG ratings (together with underlying public ESG data, detailed pillar-level and sub-pillar level scores and detailed rating report) can be subscribed to by investors such as banks, asset management companies (AMCs), financial institutions, insurance companies, foreign institutional investors, pension funds and retail investors as well as issuers.

The ratings can be used for investing and lending decisions, ESG risk monitoring, evaluating best practices among peers, and identifying opportunities.

Note: ESG 'score' and 'rating' are used interchangeably and are not different from each other.

* Crisil ESG Ratings & Analytics Ltd incorporates transition assessment centrally in its ESG ratings and Core ESG ratings. Hence, Combined Score and Core Combined Score are not published separately, in line with the SEBI ERP regulations. Refer to detailed methodology document for further details.