ESG ratings increasingly influence investment decisions, index inclusion, and corporate reputation in India. Understanding how ratings work and how to improve your score is critical for listed companies.
SEBI Regulation of ESG Rating Providers
From July 2023, SEBI regulates ESG rating providers (ERPs) in India. Key requirements include:
- Registration with SEBI under the ESG Rating Provider framework
- Standardised methodology disclosure
- Rating based on verified data (BRSR filings)
- Core and additional ratings differentiation
Major ESG Rating Providers for Indian Companies
- CRISIL ESG — India-specific ratings used by domestic investors
- S&P Global CSA — Drives DJSI inclusion
- MSCI ESG — Widely used by global institutional investors
- Sustainalytics — Risk-based ESG ratings
- CDP — Climate-specific scoring (A to D-)
How to Improve Your ESG Rating
- File comprehensive BRSR — Include Leadership indicators, not just Essential
- Get BRSR Core assurance — Assured data scores higher
- Disclose Scope 3 — Even estimates show maturity
- Set targets — SBTi or internal reduction targets demonstrate commitment
- Respond to CDP — Climate and water questionnaires
Start improving your ESG performance with our free BRSR assessment.