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NSE Sustainability Introduces ESG Ratings Framework for Listed Companies to Enhance Corporate Transparency.

Banking & Finance | Dated: 10 Jun 2025

On 6 June 2025, NSE Sustainability, a wholly owned subsidiary of NSE Indices Limited based in Mumbai, Maharashtra, launched Environmental, Social, and Governance (ESG) ratings for listed companies to drive innovation in sustainable finance.

🎯 Key Highlights:

  • - The company has also received a Category I ESG Rating Provider (ERP) registration certificate from the Securities and Exchange Board of India (SEBI), authorizing it to operate as an official ESG rating agency.
  • - NSE Sustainability aims to deliver reliable, unbiased ESG ratings to stakeholders—investors, businesses, regulators, and the public—by assessing corporate sustainability practices through detailed evaluations of company policies, disclosures, and sector-specific standards.
  • - The ratings are based on a transparent, data-driven methodology, emphasizing materiality and aligned with both national and international ESG standards and best practices.

💡 Other Important Facts:

  • (i) On June 6, 2025, Larsen & Toubro (L&T), headquartered in Mumbai, announced India’s first listed ESG bond deal worth Rs. 500 crore under SEBI’s ESG and sustainability-linked bond framework. HSBC (UK) is acting as the sole lead arranger for the transaction.
  • (ii) The issuance complies with SEBI's ESG regulatory framework, requiring clear sustainability objectives, external assessments like Second-Party Opinions (SPOs), post-issuance reporting, and defined Key Performance Indicators (KPIs) to measure environmental and social outcomes.
  • (iii) Through this bond, L&T has committed to lowering greenhouse gas emissions and freshwater withdrawal intensity, aligning with its targets of water neutrality by 2035 and carbon neutrality by 2040, supporting India’s Net-Zero vision.

📚 Test Your Knowledge:

Recently, which organization launched the ESG (Environmental, Social and Governance) ratings for listed companies in India?

Correct Answer: NSE Sustainability

🚀 Quick Recap:

About National Stock Exchange (NSE) Indices Limited

  • Managing Director (MD) : Aniruddha Chatterjee
  • Headquarter : Mumbai