As per SEBI Regulations for ESG Rating Providers “environmental, social, and governance ratings”, or “ESG ratings” means the rating products that are marketed as opinions about an issuer or a security, regarding its ESG profile or characteristics or exposure to ESG risk, governance risk, social risk, climatic or environmental risks, or impact on society, climate and the environment, that are issued using a defined ranking system of rating categories, whether or not these are explicitly labelled as “ESG ratings”.

ESG ratings assess a company's performance on Environmental, Social, and Governance factors, focusing on sustainability and ethical impact. Credit ratings, on the other hand, measure a company's ability to repay debt, focusing on financial risk and creditworthiness.

No, an ESG rating is not a direct recommendation to invest. It provides insights into a company's sustainability and ethical practices, helping investors assess non-financial risks and helps investors make informed decisions.

The methodology is published by Shesh Enviro Solutions Private Limited on its website. The issuer/ ratee companies can access it to understand the rating approach.

In Issuer pays model, the issuer/rate company pays for the ESG rating.

ESG rating enhance a company’s reputation, attract responsible investors, and drive positive change in business practices.

At Shesh Enviro Solutions Private Limited, our ESG ratings are determined through a comprehensive, sector-agnostic approach that allows for meaningful comparisons across industries. This methodology acknowledges that different sectors may face unique challenges, potentially placing some at a disadvantage in terms of rating outcomes. However, by focusing on relative performance, we provide users with a clearer understanding of the spectrum of ESG practices, highlighting the differences between the ‘best’ and ‘worst’ performers.