As the globe battles climate change and its adverse effect on the sustainability of life and business on the planet, investors and lenders now also want to know a company’s performance on environmental, social and governance (ESG) factors besides financial ratings. This has turned ESG ratings into a new growth opportunity for rating agencies. Last year Acuite Ratings & Research launched ESGRisk.ai to provide ESG ratings to India’s top listed companies. Sankar Chakraborti chairman, ESGRisk.ai & group CEO, Acuité Ratings & Research tells Krishna Kant from Business Standard why ESG scores matter to investors.
Financial ratings and their implications are