ESG rating of 80% Indian firms just 'adequate' or 'below average': Analysis

Firms did better in environmental (E) parameter compared with social and governance (G), says Crisil Research

Indian companies have to catch up when it comes to the environmental, social, and governance (ESG) disclosures, ranking modestly in a ranking for disclosures and risk management.

The analysis by Crisil Research shows 20 per cent of 586 Indian companies were in the ‘strong’ and ‘leadership’ matrix. Nearly 80 per cent or 464 companies were placed as ‘weak’, ‘below average’ and ‘adequate’.

The good news is that most companies saw an improvement in their ESG scores driven by better disclosures and improved performance on various parameters, says Crisil.

“Leaders on ESG have demonstrated a clear commitment towards sustainability, and have