Companies disclosing ESG data report nearly 15% increase in scores

The regulatory push towards environmental, social, and governance (ESG) reporting is yielding results with increase in ESG scores and a significant improvement in compliance and disclosure as seen in an analysis of top 1,000 listed companies over the last three financial years. 

According to a report by CareEdge Research, ESG reporting by Indian corporates has improved by 160 per cent. 

Sebi’s push has resulted in a jump in the number of companies putting up ESG data from 127 in FY20 to 330 companies in FY22. 

“Even as the aggregate score for the top 1,000 listed companies still hovers in the ‘Average’ grade category, companies who have been disclosing ESG data have seen their scores improve by almost 15 per cent over the past three fiscal years,” stated the report.

While energy & utilities, and financial institutions have been robust in reporting on ESG parameters, with 50 per cent and 41 per cent companies giving out the data, respectively. The materials sector like that of heavy emitting industries are also gradually picking up with nearly 20 per cent improvement.