HEG Limited's ESG Score Decreases to 60 for FY26
HEG Limited's ESG score for FY26 is 60, down from 63 in FY25, according to NSE Sustainability Ratings & Analytics. The Core ESG Rating is 55. The demerged Graphite Business is not reflected in this rating. The revision is due to factors across Environment, Social, and Governance pillars, including increased energy intensity and underrepresentation of women.
The ESG rating decrease is a concern, but the announcement explicitly states that the rating pertains to the period before the demerger of the Graphite Business. This significantly limits the direct impact of this rating on the current HEG Limited entity. Furthermore, the rating was independently generated without company engagement, suggesting it may not fully capture the company's current strategic focus or efforts.
The announcement reports a decrease in the ESG score, which is a negative indicator. However, the company did not engage the rating agency, and the rating pertains to a period before a significant corporate restructuring (demerger), suggesting limited immediate impact on the current operational entity. Therefore, the sentiment is neutral.
HEG Limited has received an Environmental, Social, and Governance (ESG) score of 60 for FY26 from NSE Sustainability Ratings & Analytics Limited, a decrease from the previous year's score of 63. The company's Core ESG Rating stands at 55. This rating was assigned based on publicly available data and pertains to the period prior to the demerger of the Graphite Business, which became effective on September 1, 2026.
The report indicates a downward revision in the ESG rating due to various factors within the Environment, Social, and Governance pillars. In the Environment pillar, scores were impacted by greenhouse gas emissions, carbon footprint, energy intensity, reliance on renewable energy, and waste intensity, though waste recycling and recovery were noted as high.
In the Social pillar, the company scored well on lost time incident rates, employee and worker fatalities, health and accident insurance coverage, and customer complaint frequency. However, underrepresentation of women in the workforce and an increase in employee turnover were noted.
The Governance pillar showed strengths in the presence of independent directors and women on the board, and a documented ESG/Sustainability/BRSR policy. Areas for improvement included the combined roles of Chairman and CEO, a high CEO-to-median employee pay ratio, and executive remuneration not being linked to ESG performance.
HEG Limited has not engaged NSE Sustainability Ratings and Analytics Limited for this rating, which was independently prepared using public domain information. This disclosure is made as per Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
A plain-language summary of a public exchange filing by HEG Limited. Read the original for the full detail.