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, as per 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 managing director and chief executive Ashu Suyash said.
Scores for 225 companies computed by the rating agency's research wing 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.