Information technology and financial services players are the most environmental, Social, and governance (ESG) compliant companies in the country, and second-largest software exporter Infosys scoring the highest on the key metric, according to scores prepared by Crisil.
Companies in oil and gas, chemicals, metals and mining, and cement companies have lower ESG scores, reflecting high natural-resource intensity, and thereby higher emission levels, extractive use of natural resources, potential adverse environmental and community impact, and generally more moderate levels of disclosure, it said.
“ESG is already playing a material role in the decisions of governments, regulators, investors, lenders, and corporates. This will not only transform the investment management industry but also redefine corporate India’s approach to risk management for sustainable value creation,” Crisil’s MD and CEO Ashu Suyash said.
Scores for 225 companies computed by the agency pointed to scope for improvement on gender diversity as women’s representation both on the boards and workforce remains low at 17 per cent, independent directors and reliance on renewable sources of power, among others.
Infosys tops the list, with a score of 79 on 100, while among the financial sector players, Kotak Mahindra Bank has a score of 75. There are many IT companies and also financial sector companies having an overall ESG score in the 70s.
“Our assessment is based on quantitative and qualitative disclosures of firms. As this is an objective evaluation based on publicly available information, the quality of disclosures made is an important determinant of the overall score,” its COO Amish Mehta said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.