Sebi Approves Crisil’s ESG Ratings Unit for ESG Scoring

Sebi approves Crisil ESG Ratings & Analytics as a Category 1 provider of ESG ratings.

  • Sebi approves Crisil ESG Ratings & Analytics as a Category 1 provider of ESG ratings.
  • Crisil’s ESG scoring business, tracking over 1,000 companies, will now operate under its subsidiary.
  • ESG scores guide investors in selecting sustainable companies, with Sebi mandating certification for foreign agencies.

The Securities and Exchange Board of India (Sebi) has granted approval to Crisil ESG Ratings & Analytics as a Category 1 provider of environmental, social, and governance (ESG) ratings. Following Sebi’s amendment of regulations last year, Crisil’s ESG Ratings unit was incorporated, and its ESG scoring business, covering over 1,000 companies across 65 sectors, will now operate under its subsidiary.

Amish Mehta, Managing Director and CEO of CRISIL Ltd, expressed the significance of Sebi’s approval, highlighting the increasing importance of independent ESG ratings in financial markets. These ratings support decision-making for issuers and investors, directing funds towards sustainable growth in the Indian economy.

Sebi’s approval also mandates certification for foreign agencies providing ESG rating services to entities within India. ESG scores, indicating a company’s sustainability and ethical practices, have gained traction among investors, guiding asset managers in selecting companies aligned with their ESG criteria.