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Our Methodology

The ESG Rating Methodology evaluates a company’s performance across three core pillars—Environment, Social, and Governance—using sector-specific KPIs to generate a comprehensive ESG score. The Environmental assessment covers energy management, carbon emissions, waste and water management, product lifecycle sustainability, and transportation impacts. These metrics align with global standards such as the SDGs and emphasize long-term goals like energy efficiency, waste reduction, renewable energy adoption, and net-zero emissions. Each metric focuses on trends, compliance, and the effectiveness of sustainable practices adopted by the company.

The Social and Governance pillars measure a company’s commitment to community development, human rights, workplace safety, diversity and inclusion, fair labor practices, data privacy, corporate ethics, transparency, and regulatory compliance. Social factors include community engagement, employee wellbeing, rights, and inclusion, while Governance evaluates ethical conduct, board oversight, compliance audits, stakeholder engagement, and disclosure quality. Together, these pillars create a structured and transparent framework to assess how responsibly and sustainably an organization operates, ensuring alignment with global sustainability and ethical standards.

The rating scores are assigned into categories
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All the ESG Ratings provided by us on a scale of 0-100, where a higher score signifies a better ESG performance.

Pillar scores across the Environmental and Social Pillars are calculated based on the weighted average of Key Factor Scores under each respective pillar. The weights are assigned to Key Factors based on the materiality matrix developed by us after a thorough research.

Industry Classification

SEBI has developed a harmonized four level industry classification framework for the purpose of credit rating and peer benchmarking. SEBI has classified all businesses into 22 sectors and split the sectors into 200 basic industries. We have adopted the same framework for the purpose of ESG Rating as well. You are compared with the top five companies as per market capitalization within the same basic industry. This enables a more standardized and uniform comparison.

View the industry classification here

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ESG RATING METHODOLOGY
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