Date: August 4, 2026

ESG Rating Disclosure

HEG Limited has received an updated ESG rating from CRISIL ESG Ratings & Analytics Limited, a SEBI-registered Category-1 ESG Ratings Provider. The company has been assigned an ESG rating score of 'Crisil ESG 57' based on disclosures for fiscal 2026 and other publicly available data.

Rating Details

Nature of Engagement: Unsolicited/Independent Evaluation

Company Engagement Status: HEG Limited has not engaged CRISIL ESG Ratings for this rating. The rating was independently prepared by CRISIL ESG Ratings based on information available in the public domain.

Base Data Period: Fiscal 2026

Rating Category: Adequate (on a scale where 51-60 represents Adequate)

Rating Scale: 0-100, with 100 being the highest

ESG Rating History

| Assessment Period | Date of Publication | ESG Rating | Rating Category |

| March 31, 2023 | September 6, 2024 | Crisil ESG 55 | Adequate |

| March 31, 2024 | January 13, 2025 | Crisil ESG 53 | Adequate |

| March 31, 2025 | August 18, 2025 | Crisil ESG 53 | Adequate |

Rating Rationale Summary

The overall ESG rating improved to 'Crisil ESG 57' from 'Crisil ESG 53', driven by improvements in key environmental and social parameters including:

  • Lower emissions intensity
  • Reduced energy consumption intensity
  • Decreased non-hazardous waste generation intensity
  • Reduced water withdrawal intensity
  • Nil Lost Time Injury Frequency Rate (LTIFR) for employees and workers
  • Improved domestic sourcing

Key Strength Areas

  • Relatively low hazardous and non-hazardous waste generation intensities
  • Nil LTIFR for employees and workers

Key Focus Areas

  • Reduction of scope 1 and 2 emissions intensity
  • Increase in renewable energy share in the total energy mix
  • Relatively higher women representation on the company board

Rating Constraints

The rating remains constrained by:

  • Energy-intensive nature of graphite electrode manufacturing
  • Very low renewable energy consumption relative to peers
  • Higher-than-peer emissions, energy and water intensity metrics
  • Low worker gender diversity
  • Significant loans and investments in related parties

Rating Sensitivity Factors

Upward Factors:

  • Increase in proportion of renewable energy within overall energy consumption mix
  • Category-wise disclosure on Scope 3 emissions

Downward Factors:

  • Any material controversy or regulatory non-compliance on ESG parameters
  • Workplace safety incidents leading to increase in LTIFR
  • Decline in average attendance of independent directors at Board and committee meetings to less than 80%

Compliance Status

There were no material controversies or compliance lapses as of June 26, 2026.

Assessment Basis

HEG was assessed based on public disclosures on ESG parameters at the standalone level and other information available in the public domain. The assessment covers environmental, social and governance parameters with sector-specific weighting.

Disclaimer Notes

The rating rationale contains extensive disclaimer language noting that:

  • It is a statement of opinion, not investment advice
  • Based on publicly available information without independent verification
  • Subject to revision or withdrawal at any time
  • Intended for use only within India
  • Contains confidential information of CRISIL ESG Ratings