Broking and investment platform, Sharekhan by BNP Paribas, has tied up with Morningstar India to offer ESG (environment, social and governance) ratings for companies under coverage. Sharekhan says, "This unique step will help traders and investors of Sharekhan in taking a 360-degree view of the companies. The ESG rating will be provided by Morningstar India (Morningstar)."

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Commenting on the development, Jaideep Arora, CEO, Sharekhan by BNP Paribas, said, “As a full-service broker, we have always believed in providing extensive research to help customers make well-informed decisions and we are very proud to incorporate ESG ratings in our research going forward. We strongly believe it is going to assist customers looking to invest in companies that are thinking of the future. Environment, Social and Governance are an integral part of BNP Paribas’s approach and strategy globally and we believe it is important for our customer here in India to gain from this.”

A company statement, "Sharekhan has taken a leaf from its global parent BNP Paribas whose sustainable finance strategy focuses on 5 key areas i.e., energy transition; natural capital and biodiversity; sustainable savings, investments & financing; the circular economy; and social & financial inclusion. BNP Paribas has been recognised at the recently held Euromoney Global Awards 2021 for its leadership in the sustainable finance space."

Aditya Agarwal, MD Morningstar India said, “Sharekhan credibility is well known. They are noted for their detailed reports are excited to partner with them, as they roll out our ESG ratings and data to the market. We are keen to support investors in achieving their sustainability goals. These ratings will allow investors to identify and understand the ESG risk factors of their portfolio companies.” 

How ratings help?

"The rating allows investors to understand how the companies in their portfolios are managing their environmental, social, and governance – or ESG – risks, relative to their peers. This rating is built to enable advisors and investors to directly compare companies across industries, and a refined design aims to make it easier to use as they make investment decisions," a per a company statement.