India Ratings launches ESG relevance disclosure on rated firms
![](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2021/12/e91a85302241029a112826bbecaafa20.jpg)
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Ratings agency India Ratings and Research (Ind-Ra) on Thursday launched its integrated disclosure that shows how environmental, social, and governance (ESG) factors impact individual credit rating decisions.
These disclosures will be a part of rating action commentaries for all entities having listed securities whose ratings will be assigned or reviewed effective from January 1, 2022.
ESG factors determine a company's impact on society and environment. It gives a non-financial glimpse on the prospects of future opportunities and risks to the business.
"The ESG disclosures, which will be incorporated by Ind-Ra's analytical teams, would transparently and consistently communicate both the relevance and materiality of ESG elements to the rating decision," Ind-Ra said.
"The E, S and G relevance can be both positive and negative and will be sector based and entity specific. The disclosures are drawn from Sustainability Accounting Standards Board's (SASB) Global Sustainability Framework with a total of 14 factors."
As per Ind-Ra, these factors are fundamental factors in the ESG journey of any entity and would help it to make the disclosures specific wherever these have a relevance to the rating.
"Ind-Ra relies on the information shared by the rated company including, but not limited to, public sources as part of its rating exercise.
"Our focus is purely on a fundamental credit analysis and so our ESG Relevance Disclosures are solely aimed at addressing ESG in that context."
![](https://portfolio.investmentguruindia.com/uploads/news/Nilesh Shah, Managing Director at Kotak Mahindra Asset Management Co. Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Mining Sector_438.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/IPO 6.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/yes bank_78.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Gv_Couple_Tourism.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Shiping_123.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/real estate 25.01.2024.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Amara Raja Batteries Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Signature 2.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Amara Raja Batteries Ltd.jpg)