Indian companies consistently score below global peers on ESG ratings — not because of poor performance, but because of poor disclosure and governance structures. We help boards build robust ESG governance frameworks and systematically improve scores across CRISIL, Sustainalytics, MSCI, S&P Global, and CDP.
SEBI’s BRSR framework requires boards to demonstrate policy coverage, oversight mechanisms, and accountability across all 9 NGRBC principles. ESG rating agencies evaluate governance as a core pillar. Investors increasingly link ESG governance quality to capital allocation decisions.
SEBI LODR Regulation 34(2)(f) mandates BRSR in the annual report. BRSR Section B requires board-level policy confirmation for each NGRBC principle. SEBI’s ESG Advisory Committee has recommended enhanced governance disclosures, anti-greenwashing guidelines, and ESG rating regulation. Companies without formal governance structures face regulatory risk.
Institutional investors (domestic mutual funds, FIIs, pension funds) use ESG ratings for screening and portfolio weighting. Companies in the NIFTY ESG indices must maintain minimum governance scores. Poor ESG governance leads to exclusion from ESG-themed funds, higher cost of capital, and reduced access to sustainability-linked financing.
Indian companies often have better sustainability practices than their ESG scores reflect. The gap is driven by inadequate disclosure quality, missing governance structures (no formal ESG committee), lack of measurable targets, and weak integration of ESG into enterprise risk management. Closing this gap is a disclosure challenge, not an operational one.
Effective ESG governance starts at the board. We help companies structure oversight, define responsibilities, and embed sustainability into corporate decision-making.
Board ESG/sustainability committee charter, terms of reference, composition guidelines, meeting cadence, and reporting lines to the full board. Aligned with NGRBC Principle 1 and SEBI LODR governance requirements. We design the committee to cover all 9 BRSR principles with appropriate expertise.
Comprehensive governance document covering roles and responsibilities from plant to board — sustainability steering committee, functional ESG owners (HR, EHS, procurement, legal), KPI ownership (RACI matrix), data flows, reporting cadence, and escalation protocols.
Board ESG competency assessment and skills matrix. Director training programme covering regulatory landscape (BRSR, SEBI, RBI), fiduciary obligations, climate risk, investor expectations, and governance best practice. Customised board-level ESG masterclass.
Integrate ESG KPIs into executive compensation frameworks. Performance metrics design (emission intensity, safety rates, diversity ratios), threshold calibration, and payout structures aligned with the company’s sustainability targets. Increasingly expected by rating agencies and proxy advisors.
Embed ESG risks into enterprise risk management (ERM). ESG risk taxonomy, risk appetite statement, ESG risk register with likelihood/impact assessment, board risk dashboard, and integration with internal audit plan. Covers climate risk, regulatory risk, social licence risk, and supply chain risk.
Anti-corruption policy, whistle-blower mechanism, conflict of interest protocols, related-party transaction oversight, and regulatory compliance monitoring. Directly feeds BRSR Principle 1 (Ethics, Transparency & Accountability) disclosures.
ESG ratings drive index inclusion, investor screening, and cost of capital. We deconstruct each rating agency’s methodology and build disclosure strategies to close the gap between actual performance and reported score.
India’s leading domestic ESG rating. Evaluates environmental, social, and governance performance with India-specific methodology. Drives NIFTY ESG index inclusion. We provide methodology deconstruction, disclosure gap analysis, and annual score improvement roadmap.
ESG Risk Rating measuring unmanaged ESG risk. Material ESG issues, management quality, and controversy exposure. Indian companies often lose points on management quality — fixable through governance documentation and policy disclosure. Lower score = better.
Industry-adjusted A to CCC rating scale. Key Issues framework with governance, product safety, and environmental metrics. Indian companies typically lose points on corporate governance, supply chain labour, and chemical safety. Scale: CCC–B–BB–BBB–A–AA–AAA.
Corporate Sustainability Assessment driving Dow Jones Sustainability Index inclusion. Industry-specific questionnaire (60–100 questions). Peer benchmarking, score trajectory modelling, and annual response management.
Climate Change, Water Security, and Forests questionnaires. Scored D to A. Score improvement requires structured climate governance, SBTi-aligned targets, and detailed Scope 1/2/3 disclosure. We support response preparation and score trajectory from D/C band to B/A band.
ISS ESG Corporate Rating, FTSE Russell ESG Score, Refinitiv ESG Score, and EcoVadis. Each has unique methodology. We help prioritise which ratings matter most for your investor base and build a unified disclosure strategy.
Identify which ESG rating agencies currently rate your company and which are most relevant to your investor base. Review current scores, peer rankings, and historical trends. Map rating methodologies to your existing disclosures and identify the highest-impact improvement areas.
Deep-dive into each priority rating agency’s methodology. Identify the specific indicators, weightings, and evidence types that drive scores. Map disclosure gaps — the difference between what you do and what you disclose. This is where most Indian companies lose points.
Build a targeted disclosure improvement plan. Prioritise by impact (which disclosures move the score most), feasibility (data availability, policy readiness), and timeline (quick wins vs medium-term structural changes). Align disclosure strategy across BRSR, annual report, website, and questionnaire responses.
Execute the disclosure strategy. Prepare questionnaire responses, update website sustainability content, enhance BRSR narrative, and publish policies. Track rating agency assessment cycles. Monitor score changes and adjust strategy annually. Contest factual errors in rating assessments.
120-question assessment to baseline governance disclosures across all 9 NGRBC principles. Identifies gaps that affect both BRSR and ESG ratings.
Start free →Structured guidance for CDP Climate Change, Water Security, and Forests questionnaires. Improve your CDP score systematically.
Launch tool →42 board-ready ESG policies mapped to BRSR Section B. Policies are the single highest-impact disclosure for multiple rating agencies.
Download free →GHG emissions mapping — critical for CDP score improvement and BRSR Core environment attributes. Scope 1, 2, and 3.
Launch tool →Gender diversity assessment for board composition, workforce diversity, and pay equity — key governance metrics across all ESG rating agencies.
Launch tool →Track 75+ regulatory deadlines including BRSR filing, rating questionnaire windows, CDP submission, and SEBI compliance dates.
View calendar →BRSR disclosures are the data foundation for ESG ratings in India
Identify material ESG topics that matter most to rating agencies and investors
Measurable targets are a key rating driver across all agencies
Third-party assurance strengthens rating agency confidence in your data
There is no explicit SEBI mandate requiring a separate board ESG committee. However, BRSR requires board-level policy confirmation for all 9 NGRBC principles, and SEBI LODR mandates corporate governance disclosures that increasingly overlap with ESG governance. Practically, all ESG rating agencies evaluate the presence and effectiveness of board-level ESG oversight. Having a formal ESG committee (or expanding the CSR committee’s mandate) is now a baseline expectation for top 500 companies.
The major agencies rating Indian listed companies include: CRISIL ESG Ratings (domestic, S&P subsidiary), Sustainalytics (Morningstar), MSCI ESG Ratings, S&P Global CSA (DJSI), CDP (climate, water, forests), ISS ESG, FTSE Russell, and Refinitiv (LSEG). CRISIL is the most relevant for domestic investors and NIFTY ESG index inclusion. For FII/global investor exposure, Sustainalytics and MSCI are the most referenced.
Disclosure-driven improvements (policies, governance structures, questionnaire responses) can be implemented in 3–6 months and typically show score improvement in the next rating cycle (annual for most agencies). Substantive performance improvements (emission reductions, diversity targets, safety improvements) take 12–24 months to flow through. A realistic target is a 1–2 notch improvement per year for a company starting from a low base, with diminishing returns at higher levels.
Three main reasons: (1) Disclosure quality — Indian companies do many ESG activities but don’t disclose them in the format and language rating agencies expect. (2) Governance gaps — lack of formal ESG committees, missing ESG-linked executive compensation, and weak ESG risk integration. (3) Target setting — few Indian companies have published quantified, time-bound sustainability targets. These are all fixable through advisory intervention without requiring operational changes.
Yes, increasingly. All major ESG rating agencies evaluate whether ESG performance is linked to executive pay. This is also a growing expectation from institutional investors and proxy advisors. Best practice includes 10–20% of variable compensation linked to ESG KPIs (safety, emissions, diversity, governance). The KPIs should be measurable, auditable, and aligned with the company’s published sustainability targets.
Book a consultation to discuss board ESG governance design or ESG rating improvement strategy.