Environmental, Social and Governance (ESG)

Environmental, Social and Governance criteria(ESG) are set of standards for a company’s operations that investors may use to assess company’s stewardship towards its ESG practices and to identify potential investments.

  • Environmental criteria’sanalyses how a company uses or abuses its natural resources.
  • Social criteria examine how a company manages relationships with its employees, suppliers, customers, and the local communities where it operates.
  • Governance deals with analysis of a company’s leadership, board diversity,fairness in Board remuneration, statutory auditors, audits& financial reporting, andstakeholder’sengagement.

About SES ESG Score

  • SES has created an ESG ScoreModel through which it analyses and gives score to a Company’s ESG Factors. SES prepares a Report based on its analysis on such Company’s ESG practices.
  • SES covers all significant aspects associated with a Company to analyse its ESG factors. Each parameter of ESG factors analysed is not only based on mandatory legal requirements to be followed by listed Indian Companies but also based on the principles established by UN and Global Reporting Initiative and the best practices followed around the World.
  • For Instance: For Environmental Factors & Social Factors, parameters are fixed not based on requirements of Business Responsibility Reports only (mandated by SEBI for Top 1,000 companies) but also includes key requirements of Sustainability Reports / Integrated Reports (based on standards of Global Reporting Initiative, International Integrated Reporting Council). Similarly, for Governance Factors, the parameters are set based on the requirement of Companies Act, 2013, SEBI (LODR) Regulations, 2015 and other applicable laws as well as the best practices followed in the World (such as ICGN governance principles), as well as the SES Benchmarks.
  • SES gathers the information from sources such as Company’s Annual Reports, Business Responsibility Reports, Sustainability Reports, Integrated Reports, information disclosed to Stock Exchanges, information available on the Company’s website, Watchout Investors and any other authentic publicly available information relating to the Company.
  • Overall, SES ESG Score is an outcome of SES analysis on Company’ disclosure practices, policies, present/ actual position and future prospects of the Company.
  • For more information please feel free to contact us.