ESG Rating Agencies in India: A Comparative Study of Methodologies and Impact

This study provides a comprehensive comparative analysis of ESG (Environmental, Social, and Governance) rating agencies in India, with a focus on their methodologies, data sources, scoring systems, and alignment with global standards.As ESG reporting gains momentum in India, especially after the implementation of SEBI's Business Responsibility and Sustainability Report (BRSR) framework, the need for transparent, consistent, and reliable ESG ratings has intensified.The research examines key Indian ESG rating providers-such as CRISIL, CARE, and ESGRisk.ai-evaluatingtheir assessment frameworks, industry-specific indicators, and data reliance compared to global counterparts like MSCI, S&P Global and Sustainalytics.It also explores how materiality, disclosure practices, and controversy integration differ across agencies.By assessing the strengths and limitations of Indian and global rating methodologies, the study contributes to a deeper understanding of ESG's role in shaping sustainable financial markets in India.