ESG Rating measures a company's exposure to industry-specific Environmental, Social, and Governance (ESG) risks and its ability to effectively manage those risks compared to its peers. This rating provides an independent assessment of a company’s ESG performance.
ESG Rating allows companies to showcase their sustainability performance and risk management strategies to investors and stakeholders. By utilizing this service, issuers can highlight their alignment with global ESG standards, improve transparency, and strengthen their corporate reputation.
Our comprehensive methodology examines sector-specific ESG factors to assess a company's readiness in managing risks and opportunities within their respective industry.
The ESG Transition or Parivartan Score evaluates the pace and scale of a company’s investments and actions in transitioning toward Net Zero goals and enhancing ESG risk management. Rather than focusing solely on the current ESG profile, this score reflects the incremental changes a company has made in its transition journey over recent years or through concrete plans and targets aimed at addressing the risks and opportunities in shifting to more sustainable operations.
For issuers, the Parivartan Score serves as a tool to demonstrate commitment to sustainability by highlighting the progressive steps taken toward Net Zero and responsible business practices. It enables companies to showcase improvements, disclose future transition plans, and build investor confidence by reflecting their preparedness for long-term ESG performance, rather than being evaluated solely on their current state.
The score is calculated by assessing incremental progress made over time, using quantitative metrics such as improvements in ESG trendlines, shifts in revenue from environmental or social products and services, and disclosed sustainability targets or plans.
The Combined ESG Rating integrates insights from both the ESG Rating and the Transition Rating, providing a comprehensive assessment of a company's sustainability profile. This unified rating facilitates a thorough understanding of the company's ESG risks and its strategies for transitioning towards sustainability.
This combined score enables issuers to present a unified ESG risk profile, making it easier to communicate both the immediate and future ESG-related risks and opportunities. It helps stakeholders understand the company’s overall ESG positioning and readiness for future sustainability challenges.
Our methodology integrates sector-weighted ESG performance factors with transition readiness, allowing for a balanced view of both current operations and future preparedness.
This rating focuses on a company’s current ESG performance based on data that’s verified by third parties or audited for accuracy. It relies strictly on reliable, assured information that the company discloses, following the BRSR Core indicators. This makes it a trustworthy snapshot of how well the company is doing right now in terms of environmental, social, and governance practices.
The Core Parivartan Score highlights the incremental progress a company has made in recent years toward adopting more sustainable business practices in alignment with ESG principles. It evaluates measurable shifts in key indicators, such as trends in quantitative metrics or changes in revenue from sustainability-driven operations, focusing specifically on core ESG parameters.
This rating blends the Core ESG Rating and the Core ESG Transition Rating to give a full picture. It reflects both where the company stands today and how well-positioned it is to make positive changes in the future. By combining these perspectives, this rating gives stakeholders a comprehensive view of both the company’s current ESG strengths and its future potential.
