Crisil ESG Ratings & Analytics Limited (Crisil ESG Ratings) is registered with SEBI as a ‘Category 1’ ESG rating provider.
Crisil ESG Ratings offers ESG ratings and Core ESG ratings. Our ratings are 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 a period of time.
It reflects both ESG risk and impact as we adopt a double materiality approach, which considers sustainability issues as material, both when it significantly impacts the environment or society, and also when it presents a risk to the company itself. This comprehensive approach ensures that our ESG ratings reflect a holistic evaluation of a company’s sustainability performance.
ESG ratings assessment involves cross-sector, relative benchmarking of entities operating in India on a scale of 0-100.
Additionally, in the case of Core ESG ratings, the assessment is based only on third-party assured or audited data as part of BRSR (Business responsibility and sustainability report) disclosures by the rated entity.
Our ratings are designed to help subscribers measure and monitor inherent ESG factors across their financial exposures - both equity and debt - as well as monitor ESG risk and impact, evaluate best practices among peers, and identify opportunities.
We use a proprietary ESG rating framework to assess over 500 key performance indicators (KPIs) and rate companies in ~65 sectors . The assessment is based on publicly available information released by companies through their websites, and information from exchange filings, annual reports, investor presentations and sustainability reports, among others. It also factors in material ESG information in the public domain through reliable sources, such as data reported by industry associations, regulators and government agencies. The assessment is based on quantitative and qualitative disclosures. Each company under our coverage is monitored on a continuous surveillance basis for ESG material events that could potentially lead to a change in scores.
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.
To subscribe to our ESG ratings and Core ESG ratings please click here.
Note: ESG 'score' and 'rating' are used interchangeably and are not different from each other.
* Crisil ESG Ratings 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.
