India’s proposal includes accreditation requirements for ESG ratings providers and mandatory disclosure of providers’ data and information sources.

By Paul A. Davies, Michael D. Green, and James Bee

On 25 January 2022, the Securities and Exchange Board of India (SEBI) released a consultation paper stating that it planned to regulate what it described as “ESG risk ratings” and “ESG impact ratings”, alongside similar products such as carbon risk ratings, environmental, social, and governance (ESG) disclosure ratings, corporate transaction risk scores, and others.