ICRA ESG Assigns First ESG Rating to InCred Financial Services

ICRA ESG Ratings Limited has issued its first Environmental, Social, and Governance (ESG) rating to InCred Financial Services, marking an important milestone. This rating, [ICRA ESG] Impact 57, evaluates the ESG impact of the company, aiding investors in making informed decisions and pushing for sustainable business practices.

ICRA ESG Ratings Limited has awarded its inaugural Environmental, Social, and Governance (ESG) rating to InCred Financial Services, a non-banking financial company.

The company received a registration as a Category-I ESG Rating Provider (ERP) from the Securities and Exchange Board of India (SEBI) earlier this fiscal year. Formerly known as Pragati Development Consulting Services Limited (PDCSL), ICRA ESG now operates under its new name.

InCred Financial Services Limited, which specializes in personal, student, and business loans, earned a rating of [ICRA ESG] Impact 57, Moderate, according to a release from ICRA ESG Ratings Limited, a wholly-owned subsidiary of ICRA.

ICRA ESG stated that its ratings assist investors in evaluating non-financial risks and opportunities associated with different entities, fostering more sustainable and responsible investments. These ratings also offer insights for rated entities to better understand and manage their ESG impacts effectively.

Ramnath Krishnan, MD & Group CEO of ICRA Limited, commented that the adoption of ESG ratings in India would act as a catalyst for driving positive change and fostering a more inclusive and environmentally conscious business environment.

This step propels the ICRA Group into the elite cadre of Indian entities providing comprehensive risk-monitoring solutions, including ESG ratings and scores, thereby strengthening its commitment to sustainable development and responsible investing.

ICRA ESG offers varying categories of ratings—Impact, Transition, and Combined—based on a regulatory framework set by SEBI, with a rating scale from 0 to 100.

The ESG Impact Rating reflects an entity's ESG profile and the impact of its business activities on the environment and society, measured against its governance practices.

(With inputs from agencies.)