Updated May 3rd, 2024 at 17:39 IST

SEBI approves CARE ESG Ratings' arm to offer ESG Ratings

CareEdge-ESG aims to catalyse change for a sustainable future through credible ESG assessments.

Reported by: Business Desk
CareEdge-ESG aims to catalyse change for a sustainable future | Image:Shutterstock
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CARE ESG Ratings Limited, a subsidiary of CARE Ratings Limited, has secured approval from the Securities and Exchange Board of India (SEBI) to operate as a Category I ESG Ratings Provider (ERP). The registration under the SEBI (Credit Rating Agencies) Regulations, 1999, granted on May 2, 2024, paves the way for CareEdge-ESG to commence its environmental, social, and governance (ESG) rating activities.

Mehul Pandya, MD & Group CEO of CareEdge, expressed optimism about the development, stressing on the significance of ESG ratings in assessing businesses' sustainable growth journeys independently. He highlighted the evolving perspectives on ESG-based reporting and performance, both domestically and internationally, and noted that SEBI's ERP regulations and license will enhance non-financial ratings, steering the Indian economy towards sustainability.

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CareEdge-ESG aims to catalyse change for a sustainable future through credible ESG assessments. It has developed a comprehensive framework sourcing key indicators from domestic and global standards tailored to India's context. With evaluations based on over 700 data points and a materiality-driven approach to defining weights, CareEdge-ESG strives to provide nuanced ESG assessments.

Rohit Inamdar, CEO of CareEdge-ESG highlighted SEBI's ERP regulation as addressing the country's demand for businesses to transition to sustainability. Inamdar underlined CareEdge-ESG's role in empowering stakeholders to make informed decisions about sustainability, fostering positive transformation and stakeholder trust.

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The growing importance of non-financial reporting reflects the strong correlation between sustainability practices and long-term business success. CareEdge-ESG's ratings will enable issuers to assess steps towards enhancing sustainability performance by benchmarking against industry standards and evaluating relative standings among peers.

CareEdge-ESG operates under the umbrella of the CareEdge Group, offering services in Ratings, Analytics, Consulting, and ESG Ratings. 
 

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Published May 3rd, 2024 at 17:39 IST