In short
ESG ratings in India may only be issued by SEBI-registered ESG rating providers, and Core ESG ratings are built on BRSR Core. How the framework works and how a listed company can prepare.
ESG ratings are scores that rating providers give companies for their environmental, social and governance performance. Investors and lenders use them; companies are increasingly judged by them. In India, ESG ratings are regulated: SEBI has required ESG rating providers to be registered since July 2023.1 2
How SEBI regulates ESG rating providers
- Registration. ERPs must be registered with SEBI, under a chapter added to the SEBI (Credit Rating Agencies) Regulations, 1999, in 2023.1 3
- Categories. ERPs are categorised by net worth, with higher requirements for the larger category.1
- Separation. An ERP linked to a credit rating agency must keep ESG ratings clearly distinct from credit ratings.1
Core ESG ratings and ESG ratings
| Core ESG rating | ESG rating | |
|---|---|---|
| Based on | The BRSR Core indicators — independently assessed or assured for the top 1,000 | The full BRSR and other information — public disclosures, third-party data, controversies |
| Comparability | Built on a common, checked set of indicators | Depends on each provider's methodology |
Who pays: two business models
- Issuer-pays: the rated company pays for its rating, and the rating is public.1
- Subscriber-pays: investors and other subscribers pay. These ratings are to use publicly available information, and the rated company is given the report at the same time as subscribers, with a short window to comment; its comments are added to the report.1
Check SEBI's current circulars for ESG rating providers for the exact procedures.
How a listed company can prepare
- Find out who rates you, and under which model.
- Get BRSR Core right. It is the common base of Core ESG ratings — and from FY 2026-27 it is independently checked for the top 1,000.
- Disclose fully and clearly. A missing disclosure is usually scored as a gap; a rating cannot credit what it cannot see.
- Keep the evidence and history behind each figure, so corrections can be made quickly and defended.
- Have a named owner for rating reports, ready to send factual corrections within the comment window.
Frequently asked questions
Who can issue ESG ratings in India?
ESG rating providers registered with SEBI.2
What is a Core ESG rating?
A rating based on the BRSR Core indicators — the subset of the BRSR that the largest listed companies must have independently assessed or assured.
Can a company improve its ESG rating?
Mostly by improving performance and by disclosing it completely and accurately. Ratings based on public information reflect what the company has disclosed.
How ESGTrack helps
ESGTrack keeps every BRSR and BRSR Core figure with its evidence, review and history, and checks the report before it is published — so what rating providers read is complete and defensible. See assurance readiness, our guide BRSR Core explained, or book a demo.
References
- SEBI's ESG rating provider framework and BRSR-based ratings — OneStopESG. 2026
- Sebi mandates certification for ESG rating providers within six months — Business Standard. July 2023
- ESG Rating Providers — SCC Online Blog
- Measures to facilitate ease of doing business with respect to framework for assurance or assessment, ESG disclosures for value chain, and introduction of voluntary disclosure on green credits — Securities and Exchange Board of India (circular). 28 March 2025
Next review due 6 May 2027. Regulations change: check the primary sources above before relying on a date or threshold.