India Inc's performance on ESG parameters weaker: Crisil

PTI | Mumbai | Updated: 19-05-2022 20:54 IST | Created: 19-05-2022 20:54 IST
India Inc's performance on ESG parameters weaker: Crisil
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Despite the clamour for improvement in Environmental, Social and Governance (ESG) parameters, India Inc's performance on the critical environmental aspect has been found to be ''weaker'', an annual report published by rating agency Crisil said on Thursday.

The average score on the environment front was 45 as compared to 50 on social and 66 for governance as per FY21 data, the study of disclosures by 586 companies said.

Several sectors have been found to be wanting on this critical aspect, even as there is increased awareness globally about climate change, the report said, pointing out that only over a fifth of the 586 companies provided disclosures on their Green House Gas (GHG) emissions.

The report said only 21 per cent of all companies were found to have provided disclosures on scope 1 (direct emissions from owned or controlled sources) and scope 2 (indirect emissions from the generation of purchased energy).

None of the airline companies disclosed the absolute percentage of sustainable aviation fuel in their overall fuel consumption, and similarly, no company in food retail had material disclosures on environmental considerations in their supply chains, it said.

In the logistics sector, none of the companies disclosed alternative fuel consumed or the number of electric vehicles in their portfolio or usage of eco-friendly packaged materials, while no battery company revealed whether they source their rare earth metal from conflict-ridden countries, it said.

On the governance front, the report said, only one among eight media companies has a data privacy policy which governs the approach on data protection, while none had a policy on responsible marketing or advertising, it said.

In pharma, 20 companies out of 33 reported a total of 41 drug recalls, it said, adding that nearly half of the social-related controversies came from the pharma sector.

The report, however, suggested that there is an overall improvement in disclosures and the overall ESG disclosures journey in FY21 as compared to the year-ago period.

The improvement is visible especially in renewable energy consumption, gender diversity and board independence, it added.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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