SEBI to allow only accredited entities to provide ESG Rating - MMJC

Recently, SEBI has issued a Consultation Paper on Environmental, Social, and Governance (ESG) Rating Providers for Securities Markets and proposes to accredit ESG Rating Providers (ERP)s for the purpose of assigning ESG ratings.

Our Partner Makarand Joshi shared his views – This initiative will give a lot of transparency and confidence on the impact made by ESG initiatives of Indian Corporates and will help investors clearly differentiate between man and boy in corporates who are projecting their ESG initiatives.

However, the rating data will be available only in a subscription model and therefore it can be disadvantageous to smaller investors. This apart, the new norms can expose greenwashing approach adopted by any industry.

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