ONGC receives low ESG rating from Crisil, flags factual errors
ONGC received a low ESG rating from Crisil, with a Crisil ESG Score of 57 and Crisil Core ESG score of 65. The company disputes the environmental score of 44/100 and highlighted factual errors in director attendance, stating its net-zero emission target by 2038.
An ESG rating, even if disputed, can influence investor perception and access to capital. While ONGC is contesting the rating and pointing out errors, the initial low score may still impact how stakeholders view the company's sustainability performance in the short term. The company's efforts to correct factual errors and highlight its targets suggest a potential for future positive impact if the rating is revised.
The company has received a low ESG rating from Crisil which it disputes, indicating dissatisfaction with the evaluation of its environmental and governance efforts. The announcement also highlights factual errors in the report, further contributing to a negative sentiment.
Oil and Natural Gas Corporation Limited (ONGC) has received an ESG Rating Report from Crisil ESG Ratings & Analytics Ltd. The report assigned ONGC a Crisil ESG Score of 57 and a Crisil Core ESG score of 65. ONGC stated that it had neither engaged Crisil for the report's preparation nor finalized it in consultation with the company.
The company expressed that these scores are low and not commensurate with its decarbonization initiatives, governance structure, and detailed disclosures in its Business Responsibility and Sustainability Report (BRSR).
ONGC highlighted its elaborate disclosures on Scope 3 emissions and its target to achieve net-zero Scope 1 and 2 operational emissions by 2038. Despite these efforts, the company was evaluated with a below-average score of 44 out of 100 on environmental parameters.
Furthermore, ONGC pointed out a factual error in the report concerning the attendance of Independent Directors in Board and Board Level Committee (BLC) meetings. The company stated there was 100% attendance of independent directors in Board and BLC meetings, with an exception for one leave of absence, resulting in approximately 92.30% attendance.
What to do with a filing like this
Oil & Natural Gas Corporation Limited filed this with the NSE as a statutory disclosure, categorised under esg reports. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Oil & Natural Gas Corporation Limited. Read the original for the full detail.