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Written by 9:22 am Regulations

EcoRatings gets SEBI license for ESG Ratings, CFO News, ETCFO

EcoRatings Fintech Solutions, a subsidiary of EcoRatings Software Solutions, on Tuesday announced that it has secured a license from the Securities and Exchange Board of India (SEBI) to provide environmental, social, and governance (ESG) ratings.

With this regulatory approval, EcoRatings is now authorised to evaluate ESG performance for financial securities, both those currently listed and those preparing for listing, as well as for the issuing companies.

ESG ratings play a crucial role for investors, offering insights that help identify and manage risks associated with environmental, social, and governance factors. For companies, robust ESG ratings can unlock several strategic advantages.

These include eligibility for green loans with lower interest rates, competitive pricing benefits, and potential government incentives for sustainable initiatives. A high ESG rating can also enhance a company’s brand value, aid in differentiating it within the market, and open pathways to export in key regions like the US and EU, where ESG compliance is increasingly essential.

Speaking on the license, Aqeel Ahmed, Director of EcoRatings said, “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/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’ evaluation system incorporates both global and national ESG standards to help companies measure and improve their ESG practices.

  • Published On Nov 19, 2024 at 02:49 PM IST

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