Environmental, Social and Governance Framework

The Environmental, Social and Governance (ESG) framework evaluates how responsibly and sustainably a company operates beyond conventional financial performance. It examines the company's environmental impacts, relationships with people and communities, and systems of leadership, accountability and ethical conduct.

Environmental performance

The environmental pillar assesses how corporate activity affects natural resources and ecosystems, and how the company manages related risks and impacts.

• It examines greenhouse-gas emissions, climate-related risks and measures for mitigation and adaptation.
• It covers energy use, renewable energy, water consumption, wastewater, waste management and circular-economy practices.
• It considers pollution prevention, biodiversity, land use and environmental impacts across the value chain.

Social performance

The social pillar evaluates the company's effects on workers, consumers, communities and other stakeholders, including respect for human rights.

• It assesses working conditions, occupational health and safety, fair remuneration, employee welfare and diversity and inclusion.
• It examines labour and human-rights practices among suppliers and other value-chain partners.
• It covers product responsibility, consumer safety, data privacy, stakeholder engagement and impacts on local communities.

Governance performance

The governance pillar assesses whether corporate power is exercised transparently, ethically and with effective oversight.

• It examines the board's composition, independence and oversight, including management of sustainability risks.
• It covers business ethics, anti-corruption controls, regulatory compliance, disclosures and grievance mechanisms.
• It assesses accountability to shareholders and other stakeholders, executive remuneration and the reliability of ESG reporting.

How the assessment is used

ESG assessment combines qualitative policies with quantitative indicators to identify sustainability impacts, risks and opportunities. Scores may differ because rating agencies and reporting frameworks use different indicators, weights and concepts of materiality. In India, the Business Responsibility and Sustainability Report links listed-company disclosure to the National Guidelines on Responsible Business Conduct.