Regulatory Disclosure Details

Key Quantitative Figures

  • ESG Rating: 74 (Leader category) for FY 2026
  • Rating Components: Environmental Score: 66, Social Score: 79, Governance Score: 73
  • Core ESG Rating: 74 (comprising Environment: 66, Social: 79, Governance: 73)

Timeline of Events

  • August 10, 2026: ESG Rating Report received from NSE Sustainability Ratings & Analytics Limited
  • August 12, 2026: Company provided comments seeking clarifications on the report
  • August 14, 2026: Response received from NSE Sustainability

Parties Involved

  • Rated Entity: Shriram Finance Limited
  • Rating Provider: NSE Sustainability Ratings & Analytics Limited (SEBI Registered ESG Rating Provider - Category I)
  • Company Representative: U Balasundararao, Company Secretary & Chief Compliance Officer

Key Rating Drivers and Performance Metrics

Social Performance Highlights

  • 100% of permanent employees covered under health insurance
  • Female employee percentage meets industry standards with 4% increase compared to previous year
  • Employee grievances decreased by 60% compared to previous year
  • Permanent employee turnover increased by 1% compared to previous year
  • Customer complaints frequency higher than benchmarks with 39% increase compared to previous year
  • CSR spending significantly exceeds regulatory obligations
  • Documented CSR policy exists outlining social responsibility strategies
  • Domestic procurement rate higher than industry standards

Governance Performance Highlights

  • Board composition shows stronger presence of independent directors than regulatory minimum
  • Regulatory requirement for women directors fulfilled
  • Chairperson is an Independent Director (governance separated from management)
  • Roles of Chairman and CEO are separated
  • Nomination and Remuneration Committee has better independent director representation than compliance requirements
  • Audit Committee's independent director representation better than statutory guidelines
  • Risk Management Committee meets required threshold of independent directors
  • CSR Committee independent director percentage compliant with regulatory requirements
  • CEO-to-median employee pay ratio aligned with industry peers and verified by nomination committee
  • Comprehensive Anti-Corruption and Anti-Bribery policy in place
  • ESG/Sustainability/BRSR policy exists

Important Clarifications

  • Company has not engaged NSE Sustainability for ESG Ratings
  • Rating was independently prepared by NSE Sustainability based on public disclosures for FY 2026
  • Company sought clarifications on the rating report through formal process

Rating Framework Details

Data Sources

Annual Reports, ESG Reports, BRSR reports, Company Website, News, Stock Exchange Filings

Assessment Methodology

  • Five Assessment Criteria: Performance, Compliance, Policy, Initiatives, Best Practice
  • Industry-specific weighting based on materiality assessment
  • Rating Scale: 0-100 with percentile-based categorization
  • Rating Categories: Leader (Top 10%), Aspiring (Next 25%), Adequate (Next 35%), Moderate (Next 25%), Lagging (Bottom 5%)

Additional Rating Components

  • Controversy Score: Used to discount raw ESG rating based on number, severity and frequency of negative events
  • Transition Score: Captures sustainability outlook and transition efforts

Disclaimer Notes

  • Rating based on publicly disclosed information without independent verification
  • Disclosure quality and availability vary across entities and impact rating
  • No warranty or representation as to accuracy, completeness or reliability
  • Readers advised to undertake their own diligence

Additional Information

  • Report will be available on company website: www.shriramfinance.in
  • NSE Sustainability contact: esgratings@nse.co.in, Phone: 022-66418156
  • NSE Sustainability website: https://www.nse-esgrating.com