Key Quantitative Figures

  • ESG Rating Revised: To 83 (Outstanding) from 82 (Outstanding)
  • Environment Score: Improved to 77 (Good) from 76 (Good)
  • Social Score: Unchanged at 91 (Outstanding)
  • Governance Score: Improved to 84 (Outstanding) from 82 (Outstanding)
  • Green Finance Portfolio: Exceeded Rs. 1,400 crore with medium-term target of Rs. 5,000 crore
  • CSR Expenditure: Increased to Rs. 183 crore in FY2026 from Rs. 131 crore in FY2025
  • Customer Base: ~9.6 million customers
  • Employee Strength: 76,241 employees
  • Assets Under Management: Rs. 3,02,274 crore as of March 31, 2026
  • Employee Attrition: 31.1% in FY2026 (30.8% in FY2025)
  • Female Workforce: 13.8% in FY2026 (13.3% in FY2025)

Dates of Action

  • Rating Revision Date: July 31, 2026
  • BRSR Report Release: June 17, 2026 (triggering the rating review)
  • Previous Rating Review: March 18, 2026
  • Effective Date of Rating: July 31, 2026 at 4:34 PM

Parties Involved

  • Rated Entity: Shriram Finance Limited (SFL)
  • Rating Agency: ICRA ESG Ratings Limited (SEBI Registered ESG Rating Provider)
  • Strategic Partner: MUFG Bank (provided nominee directors and strategic expertise)
  • Regulatory Reference: SEBI Listing Regulations, Regulation 30

Purpose and Rationale

The rating revision reflects SFL's continued strengthening of ESG framework resulting from broader integration of ESG considerations across its value chain and focus on sustainable financing initiatives. The upgrade factors in improved environmental disclosures, value chain sustainability monitoring, and benefits from association with MUFG Bank.

Environmental Performance Improvements

  • Energy Intensity: Reduced to 2,676 MJ/Rs. crore from restated 2,988 MJ/Rs. crore in FY2025
  • GHG Emission Intensity: Reduced to 0.5 tCO₂e/Rs. crore from restated 0.6 tCO₂e/Rs. crore
  • Scope 1 & 2 Emission Intensity: Reduced by ~13%
  • Financed Emission Intensity: Reduced to 94 tCO₂e/Rs. crore of AUM from 98 tCO₂e/Rs. crore
  • Water Consumption Intensity: Reduced to 21.4 m³/Rs. crore from 26.8 m³/Rs. crore
  • Waste Generation: Reduced to 296 MT from 614 MT in FY2025
  • Value Chain Sustainability: Improved through disclosure of BRSR Core indicators and implementation of Value Chain Code of Conduct

Social Performance Metrics

  • Customer Complaints: Increased to 81,159 in FY2026 from 51,271 in FY2025
  • POSH Complaints: 3 reported in FY2026 (4 in FY2025), all resolved
  • Income Inequality: Highest-to-median remuneration ratio increased to 72x from 67x
  • Female-to-male Wage Ratio: 0.79x
  • MSME Sourcing: Increased to 19% from 17%
  • CSR Beneficiaries: ~3.9 lakh individuals
  • Training Coverage: ~99% employees covered under health, safety, human rights and skill-development training

Governance Enhancements

  • Board Strength: Increased to twelve directors from ten with induction of two MUFG nominee directors
  • Board Diversity: Female representation at 8% (one woman director)
  • Board Attendance: ~96%
  • Key Managerial Personnel: 0% female representation
  • Assurance: Continued reasonable assurance of BRSR Core disclosures
  • SDG Alignment: Aligned with 15 Sustainable Development Goals

Financial and Operational Impact

The rating revision reflects qualitative improvements in ESG framework but does not quantify direct financial impact. The company's sustainable finance initiatives continue to grow with green portfolio exceeding Rs. 1,400 crore.