NSE Sustainability Pioneers ESG Ratings to Drive Eco-conscious Investments in India

NSE Sustainability Ratings and Analytics, a former arm of the National Stock Exchange (NSE), has unveiled its new ESG ratings services aimed at publicly traded companies. This initiative is set to play a pivotal role in boosting sustainable business operations within India.

The entity is focused on evaluating Environmental, Social, and Governance (ESG) performance metrics, crucial for stakeholders who seek to make well-informed decisions. Announcing this on Friday, the subsidiary confirmed that it secured a Category I ESG Rating Provider (ERP) registration from the Securities and Exchange Board of India (SEBI).

As a fully owned subsidiary of NSE Indices Limited, which belongs to National Stock Exchange of India Limited, NSE Sustainability champions transparency and offers actionable insights. Ashishkumar Chauhan, MD and CEO of NSE, emphasized that the mission is to deliver accurate, comprehensive, and unbiased assessments of corporate sustainability to a wide range of stakeholders.

The ESG ratings derive from a meticulous evaluation of company policies and practices across various sectors. The firm adopts a data-driven, materiality-aligned methodology consistent with global standards to ensure unbiased ratings.

NSE Sustainability's comprehensive ratings incorporate diverse parameters, offering an impartial overview devoid of biases linked to company size or industry. Aniruddha Chatterjee, CEO of NSE Indices, stated that launching ESG ratings affirms their dedication to pioneering sustainable finance. Their ratings, data, and analytics aim to set industry benchmarks.

Beyond ESG ratings, NSE Sustainability plans to engage in related activities, including scoring projects and ESG-focused research, with an eye on both domestic and global markets.

(With inputs from agencies.)