Nature of Disclosure:

Key Quantitative Figure:

The report assigns ONGC an overall ESG score of 44, which falls into the "Inadequate" band on the rating scale (scores between 45-31 are deemed Inadequate).

Company's Stance:

ONGC disputes the rating, stating the score of 44 is "low and not commensurate with its efforts in respect of decarbonization initiatives & governance structure, as well as detailed disclosures made in Business Responsibility and Sustainability Report (BRSR)."

Material Events from Report:

The annexed report details several material events impacting the rating:

  • Environment, High Impact (Jul 2025): NGT directed ONGC to pay over ₹1 crore in additional environmental compensation for non-compliance with effluent discharge standards at its KG Basin facilities, following an earlier compensation of ₹22.76 crore.
  • Governance, Medium Impact (Mar 2025): CBI booked ONGC Chief Engineer K. Ravichandran and his wife over alleged disproportionate assets estimated at about 78.17% for the period 2014-2020.
  • Social, High Impact (Jan 2025): A fire during maintenance at ONGC's Borholla Group Gathering Station resulted in the fatal burn injuries of Senior Engineer Rahul Dutta.
  • Social, High Impact (Jan 2026): A gas blowout and fire occurred at the ONGC-owned Mori-5 well, operated by contractor Deep Industries Ltd. The fire was controlled after nearly five days with no casualties.
  • Governance, High Impact (Aug 2026): ONGC disclosed penalties of ₹14.31 lakh each from BSE and NSE (total ₹28.62 lakh) for Board and committee composition gaps during the quarter ended 30-Jun-2026. ONGC attributed this to delays in Government-appointed directors and sought a waiver.
  • Governance, Low Impact (Various): Multiple GST/Service Tax disputes and demands were noted, including orders for ₹60.19 lakh (Oct 2025), ₹6.62 crore & ₹15.21 crore (Dec 2025), ₹8.74 crore & ₹18.89 crore (Mar 2026), and a ₹22 crore demand related to JV partners. ONGC is disputing or appealing these. Contingent exposure for disputed Service Tax/GST on royalty was reported at approximately ₹3,164 crore as of 30-Sep-2025.

Report Methodology & Context:

The rating was issued by ESGRisk.ai (Analyst: Pratham Parab) on 03-09-2026. The methodology is based on 1108 indicators across 34 Key Issues, weighted for materiality to the industry (SEBI Industry: Oil, Code: IN030102; NIC: Extraction of crude petroleum and natural gas). The company's FY 2025-26 turnover was noted as approximately ₹132,508 crore with a net worth of about ₹331,770 crore.

Financial Impact:

The disclosure itself has no direct financial impact. The report lists material events involving financial penalties and contingent liabilities, the outcomes of which are subject to ongoing disputes and appeals.