NSE Sustainability Unveils ESG Ratings for Indian Companies

The NSE Sustainability Ratings and Analytics, a division of the National Stock Exchange, has taken a pivotal step in promoting sustainable corporate practices across India through the launch of its ESG ratings services for listed companies. This move signifies a key advancement in integrating sustainability into the business fabric of the nation.

Focusing on Environmental, Social, and Governance (ESG) evaluations, NSE Sustainability aims to provide stakeholders with critical insights necessary for making informed decisions. After receiving its registration certificate from the Securities and Exchange Board of India (SEBI), the company has been authorized to operate as a Category I ESG Rating Provider, marking a new chapter in its operations.

NSE Sustainability is fully owned by NSE Indices Limited, itself a wholly owned subsidiary of the National Stock Exchange of India Limited. The organization emphasizes transparency and actionable insights. According to Ashishkumar Chauhan, MD and CEO of NSE, the mission is clear: deliver accurate and unbiased evaluations of corporate sustainability practices to investors, businesses, and regulators alike.

The ESG ratings process involves a meticulous analysis of company policies and practices across various sectors. Adopting a transparent, data-driven, and materiality-based approach, the ratings are in line with both national and international standards, ensuring impartial assessments free from biases related to scale or industry.

This initiative underlines NSE's commitment to innovation in sustainable finance. Aniruddha Chatterjee, CEO of NSE Indices, expressed confidence that the service will establish a benchmark in ESG practices, covering a spectrum of activities including scoring, research, and analysis for global and domestic audiences.

(With inputs from agencies.)