Credit rating agency ICRA announced today that SEBI has granted its approval for registration of Pragati Development Consulting Services Limited (PDCSL), a wholly-owned subsidiary of ICRA, as a Category-I ESG Rating Provider (ERP) under the SEBI’s Credit Rating Agencies Regulations. PDCSL had applied for the ERP registration in September 2023.

Following the registration as ERP, PDCSL will commence its environmental, social, and governance (ESG) ratings. This development positions the ICRA Group among the few Indian entities offering holistic risk-monitoring solutions, including ESG ratings and scores.

Speaking on the development, Ramnath Krishnan, MD & Group CEO of ICRA Ltd, said: "The barometer of value creation is expanding from the tenets of profitability and efficiency – to businesses playing an active role in preserving, protecting and enriching their commitment towards the environment, society and transparency for every stakeholder. This widening perspective is also backed by investors, especially from the developed markets, a belief in prioritising investments towards compliant and sustainable companies. At ICRA, we have always believed in offering solutions to help investors and lenders assess their risks through our suite of knowledge-led services. The ESG ratings will help us enrich our value proposition further.”

Commenting on the achievement, L Shivakumar, EVP - Business Development & Chief Business Officer, ICRA Ltd, said: “This milestone demonstrates ICRA's commitment to ESG assessment and its ability to provide comprehensive and reliable ESG ratings to the market. We are excited to serve our clients with the highest standards of professionalism and quality."