Two Major ESG Raters Exit the Indian Market

S&P Global decided to cease issuing ESG ratings to Indian investors regulated by the Securities and Exchange Board of India (SEBI) in reaction to SEBI's new rules which mandate ESG rating agencies to disclose their methodologies and consider local conditions. While S&P Global will no longer offer ESG ratings of Indian companies to Indian investors, the former will still have access to them for their own purposes and ratings will still be offered to international clients where SEBI regulations do not apply. S&P is the second major rating agency to formally exit the Indian ESG ratings market following Sustainalytics' withdrawal last November.