CRISIL’s ESG Ratings Unit Receives SEBI Approval

SEBI’s approval of CRISIL ESG Ratings & Analytics as a Category 1 ESG ratings provider marks a significant step forward for environmental, social, and governance (ESG) assessments in India’s financial landscape. This recognition underscores the rising importance of independent ESG ratings in guiding sustainable practices for issuers and investors.

CRISIL began its ESG ratings journey in 2021, assessing over 1,000 companies across 65 sectors. With CRISIL ESG Ratings established as a subsidiary, the focus on ESG scoring intensifies, aligning with global standards while considering India’s sector-specific nuances.

SEBI’s regulatory framework requires transparent methodologies from certified ESG rating providers, including criteria publication and proportional weighting of ESG factors.

SEBI’s approval not only validates CRISIL’s ESG expertise but also paves the way for foreign agencies seeking to offer ESG rating services in India. ESG ratings are essential tools for asset managers and investors, facilitating informed decisions in line with sustainability goals and ethical considerations.