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Key Points

The National Stock Exchange has launched a groundbreaking ESG rating service through its subsidiary NSE Sustainability. This innovative platform will comprehensively assess companies' environmental, social, and governance practices using transparent, data-driven methodologies. The ratings aim to provide investors and stakeholders with accurate, unbiased insights into corporate sustainability performance. By setting new industry benchmarks, NSE Sustainability is positioning itself as a critical player in advancing sustainable business practices in India.

Key Points: NSE Launches Pioneering ESG Ratings for Corporate Sustainability

  • NSE subsidiary receives SEBI certification for ESG ratings
  • Provides transparent, data-driven sustainability evaluations
  • Aims to set benchmarks in sustainable finance
  • Offers objective corporate performance insights
2 min read

NSE subsidiary launches ESG rating services for listed companies

NSE Sustainability introduces comprehensive ESG rating services to evaluate corporate environmental, social, and governance performance across Indian industries.

"NSE Sustainability's mission is to provide stakeholders with accurate, comprehensive and unbiased evaluations of corporate sustainability practices. - Ashishkumar Chauhan, MD and CEO, NSE"

Mumbai, June 6

NSE Sustainability Ratings and Analytics, a subsidiary of the stock exchange NSE, has launched ESG ratings services for listed companies.

It marks a significant milestone in advancing sustainable business practices in India.

NSE Sustainability focuses on assessing Environmental, Social, and Governance (ESG) performance, providing stakeholders with vital information to make informed decisions.

The company NSE Sustainability said in a statement Friday it received its certificate of registration from the Securities and Exchange Board of India (SEBI) to operate as a Category I ESG Rating Provider (ERP).

As a wholly owned subsidiary of NSE Indices Limited, which is, in turn, a wholly owned subsidiary of the National Stock Exchange of India Limited (NSE), NSE Sustainability embodies the principles of transparency and actionable insights.

Ashishkumar Chauhan, MD and CEO, NSE, said, "NSE Sustainability's mission is to provide stakeholders, including investors, businesses, regulators and the public, with accurate, comprehensive and unbiased evaluations of corporate sustainability practices."

The ESG ratings are derived from thoroughly evaluating company practices, policies, and disclosures across relevant sectors and industries.

NSE Sustainability said in the statement it employs a transparent, data-driven, and materiality-based ESG ratings methodology aligned with both national and international standards and best practices.

By integrating a wide array of parameters, NSE Sustainability ensures its ESG ratings reflect a balanced and objective perspective, free from biases related to size, scale, or industry.

Aniruddha Chatterjee, CEO, NSE Indices, said "The launch of ESG ratings by NSE Sustainability Ratings and Analytics Ltd underscores our commitment to innovation in sustainable finance and we believe that our ESG ratings, data and analytics will set a benchmark in advancing ESG practices across industries."

In addition to ESG ratings services, NSE Sustainability will be actively involved in a range of associated ESG-related activities including but not limited to scoring products, and research activities incidental to ESG ratings, for domestic and international dissemination.

- ANI

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Reader Comments

R
Rahul K.
This is a great initiative by NSE! With growing awareness about climate change and corporate responsibility, ESG ratings will help investors make better choices. Hope this brings more transparency in how companies actually perform beyond just profits. 👍
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Priya M.
Finally! Indian investors need proper ESG metrics. Many companies claim to be sustainable but don't walk the talk. NSE's credibility should ensure these ratings are trustworthy. Will be interesting to see which sectors score well and which need improvement.
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Arjun S.
Good move but implementation will be key. Hope they don't make it too complex with bureaucracy. Also, ratings should consider India-specific challenges - we can't directly copy western ESG standards. Our development needs are different.
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Sneha R.
As someone working in corporate sustainability, this is much needed! But will small and mid-cap companies be able to afford these ratings? Hope NSE provides some support to MSMEs who want to improve their ESG performance but lack resources.
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Vikram D.
ESG is the future of investing! This will push Indian companies to be more responsible. Especially important for manufacturing and energy sectors. But NSE should ensure ratings can't be gamed - we've seen greenwashing happen abroad.
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Neha P.
Hope this leads to real change and not just another compliance checkbox. Would love to see how companies scoring high on social parameters actually treat their employees and local communities. That's the true test of sustainability! 🙏

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