NSE Sustainability Introduces ESG Ratings Framework for Listed Companies to Enhance Corporate Transparency.
Banking & Finance
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.
- 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.
Main Point :- (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.
About National Stock Exchange (NSE) Indices Limited
Managing Director (MD) : Aniruddha Chatterjee
Headquarter : Mumbai
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