Such processes assure that an ESG fund is not simply curated just on ESG scores. Role of ratingsEven as SEBI continues to be investors’ watchdog, the role of ESG rating agencies has come into focus. Some ERPs provide ESG scores for each of the 3 dimensions along with an ESG score. Ultimately, more standardisation ensures that ESG ratings are reliable, comparable, and meaningful. The effectiveness of ESG ratings lies in their completeness.

Source: The Hindu June 09, 2023 09:17 UTC