 "ICRA ESG Ratings gives its first rating to InCred Financial Services")
ICRA ESG Ratings Limited has assigned its first Environmental, Social, and Governance (ESG) rating to InCred Financial Services, a non-banking financial company.
ICRA ESG received registration as a Category-I ESG Rating Provider (ERP) from the Securities and Exchange Board of India (SEBI) earlier this fiscal. ICRA ESG was formerly known as Pragati Development Consulting Services Limited (PDCSL).
"InCred Financial Services Limited, a Non-Banking Financial Company (NBFC) focused on personal loans, student loans, and business loans, has been assigned a rating of [ICRA ESG] Impact 57, Moderate," said ICRA ESG Ratings Limited (ICRA ESG), a wholly-owned subsidiary of ICRA, in a release.
It further said the ICRA ESG-assigned ratings help investors assess the non-financial risks and opportunities associated with entities and facilitate making better investment decisions, paving the way for a more sustainable and responsible investment landscape.
These ratings also help the rated entity gain a better understanding and diagnostics of its ESG impact and accordingly plan and execute its future sustainability actions, it added.
Commenting on the development, Ramnath Krishnan, MD & Group CEO of ICRA Limited, said the adoption of ESG ratings in India will serve as a catalyst for driving positive change and promoting a more inclusive and environmentally conscious business environment.
"This advancement elevates the ICRA Group to the select ranks of Indian entities delivering holistic risk-monitoring solutions, including ESG ratings and scores. It marks a pivotal step in our commitment to promoting sustainable development and responsible investing," he said.
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ICRA ESG offers Impact, Transition, and Combined ratings to entities as per the regulatory framework prescribed by SEBI, on a rating scale that ranges from 0 - 100.
The ESG Impact Rating reflects the state of a rated entity's ESG profile in terms of the impact that its business activities create on the environment and the society against the backdrop of its governance practices.