SES ESG Research receives SEBI nod to operate as ESG ratings issuer

Capital market regulator SEBI has granted SES ESG Research Pvt Ltd, a wholly owned subsidiary of not-for-profit organisation Stakeholders Empowerment Services (SES), the certificate of registration to operate as a provider of environmental, social and governance (ESG) ratings.

The regulator has approved SES ESG Research as a Category 2 provider of ESG ratings with effect from April 25, the company said in a press release dated April 26.

The development will enable SES to transfer its ESG business to SES ESG, with the SEBI registration in place. 

What is SES and what does it do?

One of the largest proxy advisory companies in India, SES serves clients such as mutual funds, insurance providers, foreign investors, banks, and accounting and legal firms. It serves its clients through its proxy reports, CGS reports and topical research reports.

"SES is fiercely independent and conflict free and has not taken any investment from any entity and earns through subscription income alone," it added. 

Here are some key things to know bout SES: 

• SES began its ESG rating operations in 2018-19
• It published its first ESG ratings/ESG report in 2019 based on data for FY2018
• Its coverage has now increased to more than 500 companies which will gradually increase, also based on client requirements 
• SES has partnered with NSE and supplies ESG ratings data to the exchange for its indices 
• SES has conducted extensive ESG-related research for NSE and various other domestic and FII clients since 2019