470 pages carry this tag.
Credit ratings from different agencies usually agree. ESG ratings often do not. The reasons are built into how ESG ratings are made, and they change how investors should use them.
Of the three letters in ESG, governance has the clearest link to investor losses. Most large Indian corporate failures began as governance problems before they became financial ones.
A common approach is to value a company and then add or subtract a little for its ESG score. A better approach puts each material ESG issue into the model where it actually changes value.
Climate risk is often treated as a reputational issue. For lenders and investors, it is increasingly a financial one, showing up in cash flows, borrowing costs and the price of equity.
Three large Indian cement makers publish emission intensity figures that look comparable but are not. Their latest reported numbers, the differences in units, boundaries, scopes and assurance, and how to compare them properly. Educational, not investment advice.
Green bonds and sustainability-linked bonds both carry a sustainability label, but they work in opposite ways. One controls where the money goes. The other controls what the issuer must achieve.
A step-by-step reading of a real BRSR: Ambuja Cements' filing for FY 2025-26. What the workforce, safety, energy, emissions, water and related-party data show, the effect of two mergers on the numbers, and the questions an analyst would ask. Educational, not investment advice.
India's BRSR reports run to dozens of pages. This opinion piece argues that most of it is narrative, and points to the small part that investors should actually read.
ESG looks at environmental, social and governance issues that can change a company's cash flows, risks and cost of capital. The core ideas, the Indian rules, and the limits of ESG data.
ESG, CSR, sustainability and impact are often used as if they mean the same thing. They do not. The four terms, who uses each, and how to tell them apart in an annual report.
Materiality decides which ESG issues matter for a company. The four types of materiality, how a materiality assessment works, and how to read one in an annual report.
How the world agrees on climate action. The UN Framework Convention, the Kyoto Protocol, the Paris Agreement, national climate plans (NDCs) and the yearly COP meetings, and why they matter to investors.
India's climate targets, from the Panchamrit goals announced at COP26 to the 2035 NDC submitted in 2026. What India has promised, what it has achieved, and what it means for Indian companies.
The 17 Sustainable Development Goals are the world's shared to-do list for 2030. The goals, how companies and investors use them, and how to spot SDG-washing.
Greenwashing means making a company or product look better for the environment than it really is. The common forms, India's rules against it, its relatives (greenhushing, social washing, impact washing) and a red flag checklist.
ESG has strong supporters and strong critics. The best arguments on both sides, the recent backlash, and a practical position for analysts that does not depend on which side wins.
Stakeholders are the people and groups who affect or are affected by a company. The main stakeholder groups, two simple mapping tools, and how stakeholder issues turn into financial risk.
Carbon accounting measures a company's greenhouse gas emissions. The three scopes, the intensity metrics, India's new carbon market, and the traps in reading emissions data.
For many companies, Scope 3 is most of their carbon footprint. The 15 categories, which ones matter in which sectors, how companies estimate them, and how to judge the quality of a Scope 3 figure.
Many companies have announced net zero targets. Few are equally credible. How science-based targets work, what changed in the SBTi's 2026 standard, and a checklist for testing any climate target.
Carbon pricing turns emissions into a cost. The three main designs, how each one affects a company's profit and loss, where carbon pricing stands worldwide, and how India's system fits in.
A carbon credit is supposed to stand for one tonne of emissions cut or removed. Many do not. The types of credits, the quality tests, the integrity bodies, and India's own offset and Article 6 routes.
India's first compliance carbon market sets binding emission intensity targets for large plants in energy-intensive sectors. How it works, who runs it, which sectors are in, the timeline to the first trades, and how to model it.
Perform, Achieve and Trade was India's market-based energy efficiency scheme for heavy industry from 2012. How it worked, what it achieved, and how it is giving way to the Carbon Credit Trading Scheme.
The EU's Carbon Border Adjustment Mechanism charges importers for the carbon in steel, aluminium, cement, fertilisers, electricity and hydrogen. How it works from 2026, what it costs, and what it means for Indian exporters.
Climate change creates two kinds of financial risk: physical damage from a changing climate, and the costs of moving to a low-carbon economy. The risk types, stranded asset analysis, and the Indian context.
Scenario analysis tests how a company would fare under different climate futures. The main scenario sets (NGFS, IEA, IPCC), a six-step method, and how to judge the quality of a company's scenario disclosures.
Energy is the largest source of emissions for most companies and a direct cost. How to read energy data, the ways Indian companies buy renewable power, India's renewable consumption obligation, and the coming changes to Scope 2 rules.
Water shortages can stop production, and India's waste rules now make producers pay for what happens to their products. Water metrics, waste metrics, India's EPR regimes for plastic, e-waste, batteries, tyres, oil and vehicles, and what to look for.
Businesses depend on nature for water, raw materials and stable land, and many harm it. Dependencies and impacts, the main drivers of nature loss, India's rules, the global frameworks, and how analysts can assess nature risk.
The "S" in ESG is about people: workers, workers in the supply chain, local communities and customers. The four stakeholder groups, how social issues reach the financials, the social data in the BRSR, and the Indian features that make the S pillar different.
The core numbers for judging how a company treats its people: LTIFR, TRIR and fatalities for safety; turnover; women's share of the workforce and of wages; the gender pay gap; and training. How each is calculated, where it sits in the BRSR, and how to read it.
Four labour codes replaced 29 central labour laws, with key provisions in force from 21 November 2025. The new wage definition, gratuity for fixed-term staff, social security for gig workers, the higher layoff threshold, the state gig worker laws, and the costs companies have already booked.
Companies are expected to respect human rights in their own operations and their supply chains. The UN Guiding Principles, the four steps of due diligence, forced and child labour risks, the limits of supplier audits, the EU due diligence law after the 2026 changes, and the lessons of Rana Plaza.
India's Digital Personal Data Protection Act 2023 and the Rules notified on 14 November 2025. Who is a data fiduciary, the core duties, the 18-month phase-in, penalties of up to ₹250 crore, and how to judge a company's data privacy risk from its disclosures.
A mine, plant or dam needs more than legal permits: it needs the acceptance of the people around it. India's land acquisition and forest rights laws, free, prior and informed consent, the Niyamgiri and Sterlite examples, and the signs that a project's social licence is weak.
The laws, regulators and codes that decide how Indian listed companies are run, how the rules grew after each scandal, and the main conflict that Indian governance is built to manage.
The rules on board size, independence and meetings, the five main board committees, and how to read a board's real structure from the annual report.
The legal test for independence, the rules on tenure, appointment and resignation, and an eight-point checklist for judging whether a board's independent directors are really independent.
The signals in promoter holding, the mechanics of share pledging, the SEBI disclosure rules, and the red flags that point to forced selling or a change in control.
How related-party deals are defined and approved, SEBI's new turnover-based thresholds, a five-step method for reading the related-party note, and the red flags that point to value leakage.
Qualified opinions, emphasis of matter paragraphs and mid-term auditor exits are among the earliest public warnings of trouble. The opinion types, SEBI's resignation rules, and a red flag checklist.
The legal limits on managerial pay in India, the special votes needed for high promoter pay, how ESOPs work and dilute, and how to judge whether pay is linked to performance.
The rights that minority shareholders have in India, which decisions need a special vote, how e-voting results reveal what investors think, and the role of proxy advisors.
Stewardship codes ask mutual funds, insurers and pension funds to act as responsible owners of the companies they invest in. SEBI's six principles, the other Indian codes, and how to read a fund's voting record.
India is one of the few countries that makes companies spend on CSR by law. Who must spend, how much, on what, what happens to unspent money, and how analysts should read CSR disclosures.
The rules on bribery, whistleblowing, insider trading and material event disclosure that shape corporate integrity in India, and the signals analysts can find in filings.
Companies report on ESG under several frameworks at once. A map of BRSR, BRSR Core, ISSB, GRI, SASB, TCFD, CDP and the EU rules, and how they connect.
The National Guidelines on Responsible Business Conduct set out nine principles for Indian businesses. Every BRSR is organised around them. The nine principles, what each one covers, and the indicators companies report under each.
The Business Responsibility and Sustainability Report is India's main ESG filing. Its history, its three sections, what each section asks for, and where the most useful numbers sit.
BRSR Core is the set of key ESG indicators that large Indian listed companies must have independently checked. The nine attributes, the KPIs under each, the glide path, and the 2025 choice between assessment and assurance.
Many ESG risks sit with a company's suppliers and customers. SEBI's rules on value chain ESG disclosures, how they were eased in 2025, and how to read what companies report.
A BRSR can run to dozens of pages. A twelve-step checklist for reading one quickly, the cross-checks against the financial statements, and the red flags worth noting.
The ISSB's two standards are becoming the global baseline for sustainability reporting to investors. What IFRS S1 and IFRS S2 require, the December 2025 amendments, adoption around the world, and India's position.
The GRI Standards are the most widely used framework for sustainability reporting. How they are organised, the new climate, energy and biodiversity standards, and how GRI fits with ISSB and BRSR.
The SASB Standards list the sustainability topics most likely to matter financially in each of 77 industries. How they are built, how analysts use them, and the updates under way at the ISSB.
TCFD created the four-pillar structure now used for climate reporting worldwide. TNFD applies the same idea to nature. Their recommendations, the LEAP approach, and how both now feed into ISSB.
The EU's sustainability rules reach Indian companies through EU subsidiaries, EU customers and EU investors. The CSRD after the 2026 Omnibus cuts, the simplified ESRS, the EU Taxonomy and the proposed SFDR overhaul.
Assurance makes ESG numbers more reliable, but not all assurance is equal. Limited and reasonable assurance, the standards used in India and abroad, ICAI's new SSA 5000, and how to read an assurance statement.
For banks and NBFCs, climate risk sits mainly in the loan book. RBI's path from its 2022 discussion paper to the 2024 draft disclosure framework and the 2025 climate finance Directions, and what analysts can use today.
Three products with similar names that measure different things. Industry-relative ratings, absolute risk ratings and broad scores, the steps in building a rating, SEBI's six rating products, and a checklist for reading a rating report.
ESG raters often disagree about the same company. The research on how much and why, the three sources of disagreement (scope, measurement and weight), the problem of rewritten history, SEBI's attempt to narrow the gap, and how to use ratings that disagree.
India was one of the first countries to regulate ESG raters. The 2023 rules, who must register, Category I and II providers, the six rating products, India-specific parameters, issuer-pays and subscriber-pays models, the 19 registered providers, and how India compares with the EU and UK.
Every ESG rating, fund and model rests on data. The main sources of ESG data on Indian companies, the common quality problems (boundaries, estimates, lags, restatements, size bias), the global data providers, and a checklist for testing a figure before you use it.
Accidents, protests, regulatory action and fraud allegations can hit a company far faster than any rating changes. How controversy scores work, four Indian examples, the gap between allegations and findings, and a simple way to build event risk into a valuation.
The ESG indices that Indian ESG funds and index funds track: Nifty100 ESG, Nifty100 Enhanced ESG, Nifty100 ESG Sector Leaders, BSE 100 ESG, and the global Dow Jones Best-in-Class (formerly DJSI) indices. Their rules, exclusions and weighting, and the checks to run before using one.
Green, social, sustainability, sustainability-linked and transition bonds and loans on one map. The two basic designs, the standard behind each label, the size of the market worldwide and in India, and the checks that apply to every label.
A green bond is a normal bond whose money must go to defined green projects. ICMA's principles, SEBI's rules, India's sovereign green bonds and the greenium.
Social bonds fund projects that help defined groups of people. Sustainability bonds fund a mix of green and social projects. ICMA's principles, the six project categories, target populations, SEBI's 2025 rules and how to test social impact claims.
Sustainability-linked bonds can fund anything, but their terms change if the issuer misses its sustainability targets. KPIs, targets, coupon step-ups, SEBI's 2025 framework, and the questions to ask.
Money that helps high-emitting companies cut their emissions, rather than funding activities that are already green. Transition bonds, SEBI's rules, ICMA's 2025 guidelines, Japan's sovereign transition bonds, India's draft taxonomy, and the tests of a credible transition plan.
One map of SEBI's rules for labelled debt: green debt securities and their blue, yellow and transition sub-categories, the greenwashing do's and don'ts, the 2025 framework for social, sustainability and sustainability-linked bonds, and the 2026 rules for independent reviewers.
The Government of India's green bonds: the 2022 framework, the nine eligible categories, what the money has funded, the auction record from 2023 to 2026, the shift to 30-year bonds, foreign access through GIFT City, and the greenium.
The greenium is the small yield discount that investors may accept on a green bond. The ways to measure it, the forces that drive it, the evidence from India's sovereign and municipal green bonds, and its real effect on a company's cost of capital.
RBI's rules for green deposits: what banks can and cannot promise depositors, where the money may go, the excluded activities, third-party verification and impact reports, and how to read a bank's green deposit disclosures.
How floods, heatwaves and carbon policy reach a lender's balance sheet. Financed emissions and the PCAF standard, RBI's 2022 pilot climate stress test, global rules for banks, and a checklist for analysing an Indian lender.
A taxonomy is an official rulebook of which activities count as green or as transition. The EU model, India's May 2025 draft (its categories, eight principles and first sectors), where it stands in 2026, and the interim lists that banks and bond issuers use in the meantime.
Blended finance uses public or philanthropic money to take extra risk so that private investors will fund projects they would otherwise avoid. The main tools, the size of the market, India's viability gap funding schemes, and the questions to ask about a blended deal.
"Responsible investing" covers very different approaches, from simply avoiding tobacco to funding projects for measurable social change. The full spectrum, what each approach can and cannot do, and how SEBI's six ESG fund strategies fit onto it.
A six-step process for building ESG into a stock analysis: pick the material issues, gather evidence, link each issue to a line in the model, test it, ask management the right questions and keep monitoring. With an ESG factor log and a worked example.
ESG-integrated valuation is not a separate method. It means building material ESG factors into the cash flows, discount rate and terminal value of a normal DCF or multiples analysis.
A step-by-step, made-up cement example that turns an intensity-based carbon scheme like India's CCTS into after-tax cash flows, a present value and a sensitivity table, and then tests whether paying for an emission cut is worth it.
The four standard ways to measure a portfolio's carbon exposure, worked through on a three-stock example: financed emissions, carbon footprint, WACI and forward-looking alignment metrics, plus the EU climate benchmarks and the traps in each number.
ESG investing uses ESG information to manage risk and return. Impact investing sets out to cause a measurable positive change. The definitions, the key differences, investor contribution versus company impact, the size of the market and the signs of impact-washing.
The main tools for measuring social and environmental impact: the theory of change, the five dimensions of impact, the GIIN's IRIS+ metrics and the Operating Principles for Impact Management, with a worked example that adjusts results for what would have happened anyway.
SEBI's 2023 rules for ESG mutual fund schemes: the six strategies, the 65% BRSR Core test, naming, voting and assurance duties, the history of flows into Indian ESG funds, and a seven-point test for checking whether a fund lives up to its label.
The three tools investors have for changing company behaviour: talking, voting and selling. The research on which ones work, collaborative engagement through Climate Action 100+, the retreat of the net zero alliances since 2025, and Indian examples.
The Social Stock Exchange segments of NSE and BSE let non-profits raise donations through listed zero coupon zero principal instruments. The eligibility rules, how a ZCZP issue works, the 2026 changes including the new CSR route, the market's size so far and what donors should check.
The ESG issues that matter most differ by industry. A one-page summary of nine Indian sectors, with links to a short map for each: the material issues, how they reach the financials, where to find the data and the Indian rules to know.
For lenders, the big ESG issues sit in the loan book and in customer data: climate credit risk and financed emissions, data privacy and cyber risk, fair lending and governance. The issues, the data and the RBI and DPDP rules to know.
For IT services companies, people and data are the core ESG issues: attracting and keeping talent, protecting client and personal data, and powering offices and data centres with clean energy. The issues, the data and the rules to know.
Cement is one of the most carbon-intensive industries, and India's carbon market now puts a price on it. Emissions intensity, alternative fuels, dust, mining and safety are the key issues. The data to use and the CCTS and CBAM rules to know.
Steel faces carbon pressure from three directions: the EU's border tax, India's coming carbon targets and the new Green Steel Taxonomy. Emissions intensity, safety, water and community issues, the data to use and the rules to know.
For power companies, the transition from coal to renewables is the central ESG and business question. Coal dependence, air pollution rules, water, ash and land for renewables, with the data to track and the Indian rules to know.
Most of an oil company's emissions come from customers burning its fuels, which makes transition strategy the core ESG issue. Scope 3, methane, process safety, carbon targets for refineries and policy risk, with the data to track.
For consumer goods companies, most ESG issues sit in the supply chain and in packaging: plastic EPR, farm sourcing, water and product health. The issues, the data and the rules to know.
For drug makers, the biggest ESG risks are about product quality and trust: manufacturing compliance, ethical marketing, effluents and access to medicines. The issues, the data and the Indian rules to know, including revised Schedule M and UCPMP 2024.
For carmakers, the biggest emissions come from the vehicles on the road, so fuel efficiency rules and the shift to EVs drive the ESG story. CAFE III, PM E-DRIVE, end-of-life vehicle rules, supply chains and safety, with the data to track.
Compare the ratio with the legal minimum that applies to the company. If the chair is a non-executive director with no promoter link, at least...
Also calculate pledged shares as a percentage of total share capital. SEBI requires detailed reasons when combined encumbrance reaches 50% of promoter...
The legal minimum is 2%. A figure below 2% is not automatically a breach if the gap relates to ongoing projects and has been moved to the Unspent CSR...
There is no fixed safe level, because some business models depend on group trade. The useful tests are the trend (RPT intensity rising faster than...
Lower is better, but only compare companies within the same sector, because intensity varies hugely between, say, cement and software. Revenue...
This is the best measure for comparing plants and companies in the same industry, and it is the basis of India's CCTS targets and of the EU's CBAM...
A high Scope 3 share means most of the company's climate exposure sits in its value chain, so targets and analysis that cover only Scope 1 and 2 miss...
Separate two figures: the renewable share of total energy, and the renewable share of electricity. Many industrial companies use far more energy as...
A falling energy intensity usually means better efficiency. The output-based version is more reliable for comparing companies in the same sector,...
Water intensity matters most for water-heavy sectors such as beverages, textiles, power, paper and chemicals. A company-level figure can hide large...
A higher rate means more waste is kept out of landfill and incineration. Read it alongside the total amount of waste and waste intensity: a company can...
A positive figure means the green bond yields less, so the issuer pays less interest because of the label. Most measured greeniums are a few basis...
The result is the part of the borrowers' emissions that is linked to the lender's money. Total financed emissions grow when lending grows, so also look...
The overall score is only as meaningful as the weights. A company can move from "average" to "good" with no change in its pillar scores if the weights...
The result is in tCO2e per ₹ crore of revenue. A lower WACI means the portfolio leans towards less carbon-intensive businesses. It is useful for...
The result shows how much of today's EBITDA a carbon cost would take. As a rough guide, under 2% is usually minor and above 10% is a major valuation...
A higher share means more of the business already serves low-carbon or sustainable demand. The figure is only as good as the definition behind it:...
Lower is better. Compare employees with employees and workers with workers, and peers in the same sector. Read it together with fatalities: a low LTIFR...
TRIR captures more injuries than LTIFR, so it is usually higher and gives a fuller picture of safety. A falling LTIFR with a steady or rising TRIR may...
High turnover raises hiring and training costs and can signal problems with pay, culture or management. Normal levels differ by sector: IT services and...
Calculate it at each level, not just overall. A company with 30% women overall but very few in senior roles has a pipeline problem. Compare it with...
A positive figure means women's median pay is lower. The median reduces the effect of a few very high salaries. The gap mainly reflects where women sit...
More training can mean better skills and lower turnover, but quantity alone says little. Check how much is skills training rather than mandatory...
Ten situations from the annual reports and exchange filings of hypothetical Indian listed companies. For each one, decide whether it is a red flag, worth a closer look, or normal practice.
Eight claims from hypothetical company reports, adverts and bond documents. Decide whether each is likely greenwashing, needs more detail, or is credible.
Twelve emission sources at hypothetical Indian companies. Sort each into Scope 1 (direct emissions from sources the company owns or controls), Scope 2 (purchased electricity, steam, heat or cooling) or Scope 3 (everything else in the value chain).
Below is an extract from the BRSR of a hypothetical manufacturing company for FY 2025-26, with FY 2024-25 in brackets. Answer the eight questions using only the extract. Permanent employees: 4,000 (3,800), of whom women 400 (360). Gross wages paid to women as a share of total wages: 6% (6%). LTIFR per million person-hours: employees 0.20 (0.25), workers 1.10 (0.70). Fatalities: employees 0 (0), workers 2 (0). Total energy: 50,00,000 GJ (40,00,000 GJ), of which renewable 5,00,000 GJ (4,00,000 GJ). Company statement: "Green power now meets 30% of our electricity needs." Scope 1 and 2 emissions: 6,00,000 tCO2e (5,00,000 tCO2e). Production: 10,00,000 tonnes (8,00,000 tonnes). Water withdrawal: 20,00,000 KL; water consumption: 20,00,000 KL. Related-party share of purchases: 30% (18%). BRSR Core: limited assurance (reasonable assurance in FY 2024-25), new assurance provider.
The person or group that controls a company, usually its founder, a business group, a parent company or the government.
A number, usually from 0 to 100, that sums up a company's performance across a set of environmental, social and governance indicators.
The Business Responsibility and Sustainability Report: SEBI's mandatory ESG report for the top 1,000 listed companies by market capitalisation, filed as part of the annual report.
Any deal between a company and a related party, such as its promoters, directors, key managers, their relatives or the entities they control.
A non-executive director with no material relationship with the company, its promoters or its management that could affect their judgement.
The percentage of a company's shares owned by its promoter and promoter group: the founders, controlling family or parent company, and the people and entities connected to them.
Making a company, product or investment look better for the environment than it really is.
A framework for analysing environmental, social and governance issues that can affect a company's cash flows, risks and cost of capital.
Meeting today's needs without reducing the ability of future generations to meet theirs.
The view that companies should serve the interests of all their stakeholders, not only shareholders.
The view that a company's main purpose is to maximise value for its shareholders.
An approach that measures company performance on three dimensions: people, planet and profit.
The test of whether an issue matters enough to influence decisions about a company.
An ESG issue is financially material if it could affect a company's cash flows, risk or cost of capital.
An issue is impact-material if the company has a significant effect on people or the environment through it.
Treating an issue as material if it passes either the financial materiality test or the impact materiality test.
The idea that an issue's materiality changes over time, often moving from impact-only to financially material.
Seventeen goals adopted by UN member countries in 2015 as part of the 2030 Agenda for Sustainable Development.
The 2015 international climate treaty that aims to keep warming well below 2°C and to pursue a 1.5°C limit.
A country's own climate plan and targets submitted under the Paris Agreement, updated every five years.
The yearly meeting of countries that are parties to the UN climate convention, where climate rules and targets are negotiated.
The Paris Agreement aim of limiting global warming to 1.5°C above pre-industrial levels.
A state where the greenhouse gases put into the atmosphere are balanced by the amount removed from it.
A claim that a company's or product's emissions have been fully balanced, usually by buying carbon offsets.
A claim that a company removes or offsets more greenhouse gases than it emits.
Moving to a low-carbon economy in a way that protects the workers and communities who depend on high-carbon industries.
Deliberately saying little or nothing about climate targets or progress, to avoid scrutiny or criticism.
Overstating a company's or fund's social credentials, such as labour standards, diversity or community benefits.
Claiming measurable social or environmental impact without evidence, or for results that would have happened anyway.
All the activities and partners involved in making and delivering a product, from raw materials to end use and disposal.
The part of a company's value chain before its own operations, including suppliers and raw materials.
The part of a company's value chain after its own operations, including distribution, product use and disposal.
Any person or group that affects, or is affected by, a company's activities.
The 1992 UN treaty that sets the overall framework for international climate negotiations.
A 1997 climate treaty that set binding emission cuts for developed countries only.
The UN body that assesses the science of climate change and publishes major reports for policy makers.
The principle that all countries share responsibility for climate change, but richer, higher-emitting countries should do more.
The system by which companies are directed and controlled, including who makes decisions, who checks them and how shareholders are protected.
The promoter together with close relatives and the companies, firms and trusts the promoter controls.
Shares that a promoter has given to a lender as collateral for a loan, usually a loan taken by the promoter or a promoter group company rather than by the listed company itself.
Any arrangement that restricts a shareholder's freedom to sell shares or gives someone else a claim over them.
A promise by a shareholder to a lender not to sell or pledge certain shares while a loan is outstanding.
The rule that listed companies must keep at least 25% of their shares with the public.
Shares that carry more votes per share than ordinary shares, allowed for some founder-led technology companies.
The share of a board made up of independent directors, and more broadly the board's ability to act separately from management and the promoter.
A senior independent director who leads the other independent directors, especially when the chair is not independent.
The board committee that oversees financial reporting, auditors, internal controls and related-party deals.
The board committee that oversees appointments to the board and senior management, succession and pay policy.
The board committee that handles complaints and service issues of shareholders and other security holders.
The board committee that oversees the company's risk framework, required for the top 1,000 listed companies.
The board committee that sets and monitors a company's corporate social responsibility policy and spending.
A related-party transaction large enough to need shareholder approval under SEBI's rules.
A single advance approval for a set of repeated related-party transactions, within stated limits, instead of approving each one separately.
A deal made on the same terms that two unrelated parties would agree to in the open market.
A "clean" audit opinion stating that the financial statements give a true and fair view.
An audit opinion stating that the accounts are fair "except for" specific items that are wrong or could not be verified.
An audit opinion stating that the financial statements as a whole are materially misstated and do not give a true and fair view.
An audit report in which the auditor declines to give any opinion because it could not collect enough evidence.
A paragraph in an audit report that draws attention to an important matter already disclosed in the accounts, without changing the opinion.
An area that the auditor judged most significant in the audit, described in the audit report of listed companies.
A government order that requires auditors to report on specific matters, such as loans to related parties, defaults and frauds, in an annexure to the audit report.
The policies and procedures a company uses to make sure its financial reporting is reliable and its assets are protected.
The rule that limits how long the same auditor can audit a company.
The senior officers named by law as responsible for running a company: the CEO or managing director, whole-time directors, the company secretary and the CFO.
A scheme that gives employees the right to buy company shares at a set price after a waiting period.
A firm that analyses shareholder resolutions and recommends how institutional investors should vote.
A set of principles asking institutional investors to act as responsible owners of the companies they invest in.
Shareholders using their rights to push a company to change its strategy, governance or management.
Electronic voting by shareholders on company resolutions, mandatory for listed companies in India.
A company's formal whistleblower system, through which directors and employees can report genuine concerns.
Trading in a company's shares while holding unpublished price sensitive information about it.
Information about a company that is not yet public and would likely move its share price if it were.
The period during which a company's designated persons are allowed to trade in its shares.
A listed company's duty to tell the stock exchanges promptly about events that could affect its share price or investors' decisions.
A company's spending on social and environmental causes outside its core business; in India, a legal requirement for larger companies.
A special bank account into which a company must move CSR money allocated to ongoing projects but not yet spent.
The list in the Companies Act of activities on which companies can spend their CSR money, and the funds to which unspent amounts can go.
A letter in which a company reassures a lender about another entity's ability or intention to repay a loan.
A borrower that does not repay a bank loan despite being able to, or that diverts or siphons off the borrowed money.
Nine principles of responsible business conduct issued by India's Ministry of Corporate Affairs in 2019, on which the BRSR is built.
SEBI's earlier, shorter ESG report for listed companies, replaced by the BRSR.
A subset of key BRSR indicators, grouped under nine attributes, that large listed companies must have independently assessed or assured.
Under SEBI's rules, a top supplier or customer that individually makes up 2% or more of a company's purchases or sales by value.
A third-party check of BRSR Core data under standards developed by the Industry Standards Forum, allowed by SEBI as an alternative to assurance.
A forum of the industry bodies ASSOCHAM, CII and FICCI that develops standards for BRSR Core assessments, in consultation with SEBI.
A reporting approach that explains how a company creates value over time using six types of capital, not just financial capital.
The IFRS Foundation board that sets global sustainability disclosure standards for investors.
The ISSB standard on general requirements for disclosing sustainability-related financial information.
The organisation behind the GRI Standards, the most widely used framework for reporting a company's impacts on the economy, environment and people.
Industry-specific standards that set out the sustainability topics most likely to affect financial performance in each of 77 industries.
A task force set up by the Financial Stability Board that created the four-pillar framework for climate disclosure.
The four headings under which climate and sustainability risks are disclosed: governance, strategy, risk management, and metrics and targets.
A taskforce that developed a framework for disclosing nature-related dependencies, impacts, risks and opportunities.
A non-profit that runs a global disclosure system on climate, water and forests, and scores companies from A to D-.
The EU law that requires large companies to report sustainability information on a double materiality basis, using the ESRS.
The reporting standards that companies use under the EU's CSRD.
The EU's classification system that defines which economic activities count as environmentally sustainable.
The EU rules on sustainability disclosures by fund managers and other financial market participants.
The degree to which different sustainability reporting frameworks can be used together without duplicating work.
A lighter level of independent assurance, ending in a negative conclusion that nothing came to the provider's attention to suggest the information is wrong.
A high level of independent assurance, close to a financial audit, ending in a positive opinion on the information.
The international standard for assurance engagements on information other than historical financial statements, widely used for sustainability data.
The international standard for assurance engagements on greenhouse gas statements.
ICAI's current standard for assurance engagements on sustainability information, used by Indian chartered accountants.
ICAI's new Standard on Sustainability Assurance, aligned with the IAASB's ISSA 5000, applying from 1 April 2027.
The most widely used global standards for measuring and reporting greenhouse gas emissions, developed by the World Resources Institute and the World Business Council for Sustainable Development.
Direct greenhouse gas emissions from sources a company owns or controls.
Indirect emissions from the electricity, steam, heat or cooling a company buys.
A way of calculating Scope 2 emissions using the average emission factor of the grid where the electricity is used.
A way of calculating Scope 2 emissions using the emission factors of the specific electricity a company has chosen to buy, including certificates and contracts.
All other indirect emissions in a company's value chain, from suppliers upstream to customers downstream.
A common unit that expresses the warming effect of any greenhouse gas as the amount of carbon dioxide with the same effect.
A measure of how much heat a greenhouse gas traps compared with carbon dioxide over a set period, usually 100 years.
A number that converts an activity, such as fuel burned or electricity used, into greenhouse gas emissions.
The total greenhouse gas emissions caused by a company, product, activity or person, expressed in CO2e.
Greenhouse gas emissions per unit of revenue or output, used to compare companies of different sizes.
Emissions or energy use per unit of physical output, such as tonnes of CO2e per tonne of steel or cement.
Emissions that a product or service helps others avoid, compared with a reference case, such as the emissions saved when a customer replaces a diesel generator with solar power.
An emissions reduction target consistent with what climate science says is needed to meet the Paris Agreement goals.
The total amount of CO2 that can still be emitted while keeping warming below a given level, such as 1.5°C or 2°C.
A price per tonne of emissions that a company uses in its own decisions, even where no external carbon price applies.
A chart that ranks options for cutting emissions by their cost per tonne, from cheapest to most expensive.
A tax set at a fixed price per tonne of greenhouse gas emitted, or on the carbon content of fuels.
An emissions trading system in which the government caps total emissions, issues allowances up to the cap, and lets companies trade them.
A trading system that sets a benchmark for each participant and issues credits to those that beat it, which others can buy to cover a shortfall.
A carbon market created by law, in which covered companies must hold allowances or credits for their emissions.
A market in which companies and individuals buy carbon credits by choice, usually to support climate claims.
A tradable certificate representing one tonne of CO2e reduced, avoided or removed from the atmosphere.
Taking CO2 out of the atmosphere and storing it, through nature (such as forests and soils) or technology (such as direct air capture).
The test of whether an emission reduction would have happened anyway without the money from selling carbon credits.
The test of whether carbon kept out of the atmosphere by a project will stay out over the long term.
An increase in emissions elsewhere caused by a project or policy that cuts emissions in one place.
When the same emission reduction is claimed by more than one party, such as two companies or two countries.
The part of the Paris Agreement that allows countries to cooperate on emission cuts, including by trading carbon credits.
India's compliance carbon market, which sets binding emission intensity targets for large plants in energy-intensive sectors.
The tradable unit of India's CCTS, representing one tonne of CO2 equivalent.
A plant or unit that must meet a legally binding greenhouse gas emission intensity target under India's CCTS.
A plant-specific target for greenhouse gas emissions per unit of output, set under India's CCTS.
India's market-based scheme, from 2012, that set energy efficiency targets for large industrial plants and let them trade energy saving certificates.
A tradable certificate under India's PAT scheme, representing one tonne of oil equivalent of energy saved beyond a plant's target.
A tradable certificate representing one MWh of electricity generated from renewable sources.
An Indian scheme that awards green credits for voluntary environmental actions, such as planting trees on degraded forest land.
The EU's charge on the carbon embedded in imports of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.
The risk of financial loss from the physical effects of climate change, such as floods, heatwaves, cyclones and droughts.
Climate risk from sudden extreme events, such as cyclones, floods, heatwaves and wildfires.
Climate risk from long-term shifts, such as rising average temperatures, sea level rise and changing rainfall.
The risk of financial loss from the move to a low-carbon economy, through policy, technology, market or reputation changes.
The risk that companies face legal claims over their contribution to climate change, or over misleading climate disclosures.
An asset that loses value earlier than expected, or must be retired early, because of changes such as climate policy, new technology or falling demand.
A consistent description of a possible future path for emissions, policy, technology and warming, used to test climate risk.
Climate scenarios published by the Network for Greening the Financial System, a group of central banks and supervisors, widely used for financial stress tests.
An estimate of how much a company's or portfolio's value could fall under given climate scenarios.
Legal requirements for large electricity users to get a minimum share of their power from renewable sources.
Energy used per unit of revenue or output, a measure of how efficiently a company uses energy.
The total water a company takes in from all sources, such as rivers, groundwater, third-party supply and the sea.
Water that a company withdraws and does not return, roughly withdrawal minus discharge.
A condition in which demand for water in an area is high compared with the available supply.
A water treatment approach in which a plant recycles all its wastewater and discharges no liquid effluent.
An economic model that keeps products and materials in use for as long as possible through reuse, repair, recycling and better design.
A policy that makes producers responsible for collecting and recycling their products and packaging at the end of their life.
Waste that can harm health or the environment because it is toxic, flammable, corrosive or reactive.
The risk to a business from the loss of plant and animal species and the ecosystems they form.
Risks to a business that come from its dependencies and impacts on nature, including water, land, oceans and biodiversity.
TNFD's four-step method for assessing nature-related issues: Locate, Evaluate, Assess and Prepare.
Air pollutants, mainly sulphur dioxide, released when fuels containing sulphur, such as coal and heavy oil, are burned.
Air pollutants formed when fuels are burned at high temperatures, in vehicles, power plants and industrial furnaces.
Tiny particles in the air, such as PM10 and PM2.5, that can enter the lungs and bloodstream.
A review under the Paris Agreement, held every five years, of collective progress towards its climate goals.
A country's greenhouse gas emissions per unit of economic output, the main form of India's national emissions target.
Installed electricity generating capacity from sources other than fossil fuels: renewables, large hydro and nuclear.
A bond whose proceeds must be used for defined environmental or climate projects, such as renewable energy, clean transport or green buildings.
A bond whose proceeds fund projects with clear social benefits for a defined target population, such as affordable housing, healthcare or loans to small businesses.
A bond whose proceeds fund a mix of green and social projects under a single framework.
A general-purpose bond whose financial terms, usually the coupon, change depending on whether the issuer meets predefined sustainability targets.
A bank loan whose interest margin moves up or down depending on whether the borrower meets agreed sustainability targets.
A use-of-proceeds bond that funds projects to cut emissions in high-emitting activities that cannot yet become fully green.
A green bond whose proceeds go to sustainable water management or the marine and ocean economy.
An Indian sub-category of green bond whose proceeds go to solar energy generation and the industries linked to it.
A loan whose money must be used for eligible green projects, with tracking and reporting similar to a green bond.
An interest-bearing fixed deposit at a bank or NBFC whose proceeds are earmarked for green lending or investment.
A green bond issued by a city or urban local body to fund projects such as sewage treatment, water supply or solar power.
An infrastructure investment trust that owns renewable energy or other green infrastructure assets and pays out most of their cash flows to unitholders.
The rule that the money raised from a labelled bond or loan must go only to eligible projects described in its framework.
A key performance indicator, such as emissions intensity or renewable energy share, that a sustainability-linked bond or loan is tied to.
The level a sustainability KPI must reach by a set observation date under a sustainability-linked bond or loan.
An increase in a bond's interest rate that applies if the issuer misses its sustainability performance target.
An independent assessment, issued before a bond is sold, of whether the issuer's green, social or sustainability-linked framework is aligned with recognised principles.
An external firm that SEBI requires issuers of listed green and ESG debt securities to appoint to confirm that the bond meets the label's rules.
A regular report showing how much of a labelled bond's or deposit's money has been spent, on which projects or categories, and how much remains unallocated.
A report on the environmental or social results achieved with a labelled bond, loan or deposit, such as emissions avoided or people served.
Voluntary guidelines, first published in 2014 by a group of market participants supported by the International Capital Market Association, that set the global baseline for green bonds.
A certification scheme run by the Climate Bonds Initiative that checks bonds and other debt against science-based criteria for each sector.
A voluntary EU label, applying from 21 December 2024, for green bonds that put at least 85% of their proceeds into EU Taxonomy-aligned activities.
A green bond issued by a national government, with an amount equal to the proceeds allocated to eligible green public spending.
The yield discount on a green bond compared with an otherwise identical conventional bond from the same issuer.
The share of borrowers' and investees' greenhouse gas emissions that is attributed to a bank, insurer or investor that funds them.
A global industry initiative whose standard is the most widely used method for financial institutions to measure financed, facilitated and insurance-associated emissions.
The share of a borrower's or investee's emissions that a lender or investor counts as its own, based on its share of the company's financing.
Emissions linked to capital market deals that a bank arranges or underwrites, such as bond and share issues, rather than funds on its own balance sheet.
An exercise that estimates how a bank's or insurer's losses would change under severe physical or transition climate scenarios.
An official classification of which economic activities count as climate-friendly or transition activities, often with numeric thresholds.
The use of concessional public or philanthropic money to lower the risk or raise the return of a project so that private investors will also fund it.
Money in a deal that agrees to absorb the first losses if the project performs badly, which protects the investors ranked above it.
A government capital grant that covers part of a project's cost so that it becomes commercially viable for private developers.
An opinion from a rating provider on a company's ESG performance or on the ESG risks it faces, expressed as a grade or score.
A rating of how much ESG risk a company has left unmanaged, on an absolute scale where a lower number means lower risk.
A firm that issues ESG ratings or scores; in India, one registered with SEBI under the Credit Rating Agencies Regulations, 1999.
A SEBI-required ESG rating built only on assured or independently assessed data, mainly the BRSR Core indicators.
One of SEBI's required rating products, measuring the speed and size of a company's efforts and investment towards net zero and its improvement over time.
A measure of how serious a company's involvement is in ESG-related incidents, such as accidents, protests, fines or fraud allegations.
A rating approach that judges a company against peers in its own industry rather than against all companies.
A firm that collects, cleans, estimates and sells ESG data on companies, often alongside ESG ratings.
ESG information that a company discloses about itself, for example in its BRSR, annual report or sustainability report.
ESG figures modelled by a data provider when a company has not disclosed them, for example estimated emissions based on industry averages.
An NSE index of Nifty 100 companies, weighted by free-float market capitalisation tilted by ESG score, after excluding certain businesses and severe controversies.
A stricter version of the Nifty100 ESG Index that also removes companies with weak ESG scores.
An NSE index that picks the companies in each Nifty 100 sector that manage ESG risk best and have no major controversies.
An ESG version of the BSE 100, first launched as the S&P BSE 100 ESG Index, that excludes certain businesses and UN Global Compact violators.
A global family of best-in-class sustainability indices launched in 1999, based on S&P Global's Corporate Sustainability Assessment and renamed the Dow Jones Best-in-Class Indices from 10 February 2025.
S&P Global's yearly industry-specific questionnaire and assessment that produces S&P Global ESG Scores.
A business model in which the rated company pays the ESG rating provider for its rating.
A business model in which investors and other subscribers, not the rated company, pay for ESG ratings.
The change in a company's ESG rating or score over time, used by some investors to favour companies that are improving.
Leaving companies or sectors out of a portfolio because of what they do, such as making tobacco, weapons or thermal coal.
An investment strategy built mainly on negative screening, which avoids named sectors, activities or companies.
Choosing companies for a portfolio because they score well on ESG criteria, rather than leaving out poor performers.
Selecting the companies with the best ESG performance within each sector, so that every sector stays in the portfolio.
Excluding companies that seriously breach widely accepted international norms, such as the UN Global Compact principles on human rights, labour, environment and anti-corruption.
Building material ESG factors into normal investment analysis, forecasts and valuation, alongside financial factors.
Investing in companies whose business serves a sustainability theme, such as clean energy, water, electric mobility or healthcare access.
Investing with the intention to generate positive, measurable social and environmental impact alongside a financial return.
Dialogue between investors and company management or boards to improve ESG practices, disclosure or performance.
Voting on shareholder resolutions, usually by an institution on behalf of its clients, without attending the meeting in person.
A map of how an activity is expected to lead to a desired change, from inputs and activities to outputs, outcomes and long-term impact.
A framework from the Impact Management Project that describes any impact by what outcome occurs, who experiences it, how much change there is, the contribution of the activity and the risk that it differs from expectations.
The GIIN's free system of standard impact metrics, including a catalogue of metrics and core metric sets for common impact themes.
The extent to which an investment causes impact that would not have happened without it.
A SEBI-regulated segment of NSE and BSE where non-profits and social enterprises raise funds for social projects, with standard disclosure and assessed impact reports.
A listed security issued by a non-profit on a Social Stock Exchange that pays no interest and returns no principal, so it works as a donation.
A qualified professional who independently assesses the impact reports of non-profits that raise money on a Social Stock Exchange.
A portfolio's exposure to carbon-intensive companies, calculated as the portfolio-weighted average of each holding's emissions per unit of revenue.
An estimate, in degrees Celsius, of the global warming that would result if the whole economy emitted like a given company or portfolio.
An EU-defined index type whose carbon intensity is at least 50% below its parent index and falls by at least 7% a year, with fossil fuel exclusions.
A mutual fund or ETF that selects investments using environmental, social and governance criteria under a stated strategy.
A UN-supported global network of investors, launched in 2006, whose signatories commit to six principles of responsible investment.
An investor-led initiative, launched in 2017, that engages the world's largest corporate greenhouse gas emitters on climate governance, emission cuts and disclosure.
An initiative of asset managers committed to supporting the goal of net zero emissions, relaunched in February 2026 with a looser commitment.
A coalition of financial institutions launched in 2021 to speed the move to a net zero economy, which restructured at the start of 2025.
The skills, knowledge, health and experience of a company's workforce, treated as a source of value.
The number of work injuries that cause lost working time, per one million person-hours worked.
The number of recordable work injuries, including those without lost time, per 2,00,000 hours worked.
Work-related deaths, reported as a count or per a set number of hours worked.
The share of employees who leave a company during a year, calculated as leavers divided by average headcount.
Policies and outcomes that aim to give people of different genders, backgrounds and abilities fair access to jobs, pay and promotion.
The difference between the median pay of men and women, as a percentage of men's median pay.
People who work at a company's sites but are employed through contractors or agencies rather than directly.
A person who earns from short tasks outside a traditional employment relationship, often through a digital platform such as a delivery or ride-hailing app.
India's four codes on wages, industrial relations, social security and occupational safety, which replace 29 central labour laws.
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, which requires employers to prevent and resolve sexual harassment complaints.
The global standard, endorsed by the UN Human Rights Council in June 2011, that sets out the duties of states and the responsibilities of businesses on human rights.
An ongoing process to identify, prevent, reduce and account for harm to people linked to a company's operations and value chain.
Work done under threat or coercion, which the worker has not freely agreed to, including bonded labour tied to debt.
Work that deprives children of their childhood, education or health, or that is banned for their age.
An inspection of a supplier's site and records to check working conditions, safety and environmental compliance against a buyer's standards.
The ongoing acceptance of a company or project by local communities and other stakeholders, beyond its legal permits.
Measures to move people displaced by a project and restore or improve their homes, livelihoods and living standards.
The right of communities, especially indigenous and tribal peoples, to give or withhold consent to a project that affects them, freely, before it begins and with full information.
India's Digital Personal Data Protection Act, 2023, which sets the rules for processing digital personal data.
Under the DPDP Act, the person or organisation that decides why and how personal data is processed.
A company's responsibility to make sure its products do not harm the people who use them.
Selling and promoting products honestly, without misleading claims, pressure tactics or improper inducements.
Access to affordable and useful financial services, such as accounts, credit, insurance and payments, for people and small businesses that have been underserved.
The return shareholders require for holding a company's shares, usually estimated as the risk-free rate plus beta times the equity risk premium, plus any company-specific premium.
Related topics: Valuation, DCF, Relative valuation, Cost of capital, Financial statements, Cash flow, Earnings quality, Red flags
