NEW DELHI: EcoRatings Fintech Solutions, a subsidiary company of EcoRatings Software Solutions, gets SEBI license as a provider of environmental, social, and governance (ESG) ratings. With this license, EcoRatings will be able to provide ESG ratings to financial securities – both listed and about-to-be listed, as well as to the issuer companies.
ESG ratings enable investors to identify and mitigate potential risks linked to environmental, social, and governance factors, thereby reducing the likelihood of adverse impacts on their investments.
ESG ratings are essential for corporations, offering a range of strategic benefits. They enable access to green loans with lower interest rates, create competitive pricing advantages that drive revenue growth, and increase eligibility for government incentives focused on sustainability. Strong ESG ratings also enhance brand differentiation in a crowded marketplace and open opportunities to expand export share in key international markets such as the US and EU, where ESG performance plays a critical role in market access and growth, the company said in a statement on Wednesday.
Commenting on this Aqeel Ahmed, Director EcoRatings said, “EcoRatings is an established leader in providing ESG ratings for products and services. Uniquely positioned, EcoRatings leverages a fully AI-driven technology approach to calculate ESG ratings, making it likely the only company in India with this capability. The recent SEBI registration marks a significant advancement for the corporate and financial services sectors, enabling clients to access transparent and precise ESG ratings for their organizations as well as their listed and about-to-be listed financial securities. ESG ratings are becoming vital tools for assessing and managing risks across stakeholder groups. Companies can utilize ESG ratings to attract value-driven investments, aligning their strategies with the growing emphasis on sustainability in today’s business landscape.”
EcoRatings’ comprehensive rating system integrates leading international and national ESG frameworks to help companies assess and enhance their Environmental, Social, and Governance (ESG) performance. By adopting our comprehensive ESG ratings, businesses can ensure alignment with globally recognized ESG standards. This alignment helps organizations demonstrate their commitment to sustainable practices while achieving a competitive edge in both domestic and international markets, it added.
