India Inc improves ESG compliance: CRISIL

Indian companies have improved their standard in complying with environmental, social and governance (ESG) norms, according to ratings company Crisil.

An ESG risk assessment of 586 Indian companies across 53 sectors, based on fiscal 2021 data, indicates an improvement in the ESG scores of a majority of them compared with the previous year, driven by better disclosures and improved performance on various parameters, it said.

“Leaders on ESG have demonstrated a clear commitment towards sustainability, and have consistently delivered superior performance,” Crisil managing director Amish Mehta said.


In contrast, those in the ‘weak’ and ‘below-average’ categories have poor disclosures and inadequate ESG risk-management practices, he said.

This is visible especially in renewable energy consumption, gender diversity and board independence.

A comparison of the performance of 225 companies that were analysed for the previous year as well, 14 showed a significant positive deviation (more than 5-point increase in score) and three a notable negative deviation (more than 5-point decline), the ratings company said.

Overall, the latest assessment placed 14 companies in the ‘leadership’ category, 108 in the ‘strong’ category and 73 in the ‘below average’ and ‘weak’ categories.