Page 58 - CRISIL ESG Report 2023

Our ESG products and services
CRISIL is committed and well-poised to support the sustainability demand of its clientele. Our ESG analysis, information and insights, evaluations and solutions empower clients and other stakeholders to make decisions with conviction and contribute to sustainable progress globally.
Global ESG investors are focussing on the sustainability credentials of their investments, while regulators are simultaneously enhancing fund labelling and disclosure rules to mitigate greenwashing. Demand for ESG integration is expanding across asset classes including fixed income and alternatives led by institutional investors. Global sustainability reporting regulations are becoming unified and complex, requiring corporations to evaluate and report on a wide range of sustainability topics. As these practices mature, stakeholders are calling for broader and credible non-financial information from both public and private corporations.
CRISIL Global Research and Risk Solutions’ (GR&RS)
supports sell-side houses, asset managers and other financial institutions to address their ESG challenges by augmenting their ESG research capabilities, enhancing quality of credit risk assessment by incorporating ESG factors and addressing issues related to availability bias and data deluge that impact ESG evaluation.
CRISIL’s bespoke research solutions are used by investment research firms to enhance and augment their ESG research capabilities.
In India, CRISIL Ratings explicitly highlights the impact of ESG parameters in rating rationales, especially for entities with access to capital markets (equity and debt) and those reliant on foreign investors for funding.
As a first offering in the CRISIL ESG Research segment in India, ‘ESG Compendium-ESG Gauge’ was released in 2021, wherein we analysed and scored top 225 listed Indian companies. Expanding the horizon of our coverage, during 2022, we analysed and scored 586 companies across 53 sectors in the CRISIL Sustainability Yearbook, 2022 and during 2023, we analysed and scored 1,000 companies across 63 sectors. The scores have enabled the corporates to measure and monitor inherent ESG risk across their financial exposures, both equity and debt.
Also, in line with the Securities and Exchange Board of India’s (SEBI) recent regulatory framework for ESG rating providers (ERPs), CRISIL Ratings Limited has established a wholly-owned subsidiary, CRISIL ESG Ratings and Analytics Limited (CRISIL ESG), to engage in the ERP business. CRISIL ESG has applied for ESG Rating Rating provider license. Post receipt of approval, the current ESG scoring business of CRISIL Limited will be transferred to CRISIL ESG. This proactive approach underscores CRISIL’s commitment to compliance with evolving regulations and its aspiration to be a leader in ESG ratings.
56 ESG Report 2023
Responsible business conduct