Transparency & Methodology

How We Calculate
ESG Financial Quotient Scores

Full transparency on our data sources, scoring dimensions, weighting approach, risk tier definitions, and limitations. If you have questions, contact us.

Last updated: June 2026 Covers: 155 Indian listed companies Data source: SEBI BRSR public filings

1. Data Sources

All ESG Financial Quotient scores are derived exclusively from companies' own public regulatory disclosures. We do not use estimates, surveys, or third-party data providers. The primary sources are:

📄
SEBI BRSR Filings
Business Responsibility & Sustainability Reports filed by listed companies as part of their Annual Reports under SEBI's mandatory disclosure framework (top 1,000 companies by market cap, mandatory from FY 2022-23). Covers GHG emissions, water use, waste, energy, supply chain, governance and ESG targets.
🏭
CPCB EPR Portal (Public Data)
Publicly available data from the Central Pollution Control Board's Extended Producer Responsibility portals for Batteries, Plastics, E-Waste and Tyres. Used to determine EPR applicability and compliance obligations by sector and product type.
🏢
MCA Company Registry
Ministry of Corporate Affairs public registry for company identification, CIN numbers, and sector classification used to map BRSR filings to company profiles.
📋
Regulatory Notifications
Published notifications and circulars from SEBI, MoEFCC, BEE, CPCB and other Indian regulators, used to assess compliance risk levels and upcoming regulatory obligations by sector.
What we do not use: Real-time stock prices, NSE/BSE live market data, proprietary databases, or self-reported ESG questionnaires outside of BRSR filings.

2. Scoring Overview

The ESG Financial Quotient (EFQ) score is a composite 0–10 risk score. A higher score indicates greater financial exposure to ESG-related risks — not a lower ESG performance. This is a risk lens, not a ratings system.

1
Extract quantitative and qualitative indicators from BRSR filings
2
Score each of 7 risk dimensions on a 0–10 scale
3
Weight dimensions by financial materiality to Indian regulations
4
Aggregate into a single EFQ composite score
5
Classify into High / Medium / Low risk tier
Score interpretation: A score of 0 means no identified ESG financial risk exposure based on disclosed data. A score of 10 means maximum identified risk exposure. Most Indian listed companies score between 4.0 and 7.0 due to widespread partial disclosures and EPR compliance gaps.

3. The 7 Risk Dimensions

Each dimension is scored independently on a 0–10 scale before being combined into the composite EFQ score.

🌫️
GHG Intensity
Weight: 20%

Measures carbon emissions intensity relative to revenue. Derived from Scope 1 and Scope 2 absolute emissions disclosed in BRSR (Section C, Principle 6). Scored higher for heavy emitters and for companies with incomplete or nil emissions disclosures, which signals potential SEBI enforcement exposure.

High: Nil or missing Scope 1/2 data Medium: Partial disclosure Low: Full, assured disclosure
💧
Water Intensity
Weight: 10%

Evaluates water withdrawal and consumption relative to sector benchmarks. Scored using absolute water withdrawal (m³) from BRSR, cross-referenced against sector water-stress classifications under CPCB norms. High scores indicate exposure to water-related regulatory tightening or operational disruption risk.

High: High withdrawal, water-stressed region Medium: Moderate disclosure Low: Efficiency measures disclosed
🗑️
Waste Intensity
Weight: 15%

Assesses total waste generation (hazardous + non-hazardous) relative to revenue. Scored using BRSR Principle 6 waste data. Companies with high waste generation and no disclosed reclamation or recycling protocols receive maximum scores. Linked directly to EPR obligations.

High: High waste, no reclaim process Medium: Partial waste management Low: Circular practices disclosed
♻️
EPR Exposure
Weight: 20%

Quantifies financial risk from Extended Producer Responsibility obligations under Battery Waste Management Rules 2022, Plastic Waste Management Rules, E-Waste (Management) Rules 2022, and Waste Tyre notification. Scored based on product categories, sector classification, and disclosed EPR compliance status in BRSR Section C.

High: Multiple EPR categories, nil compliance Medium: Partial compliance or unknown Low: Full EPR compliance documented
⚠️
Compliance Risk
Weight: 20%

The highest-weight dimension. Evaluates the completeness and accuracy of BRSR disclosures against SEBI's mandatory framework. Missing mandatory indicators, nil responses for quantitative fields, inconsistencies between reported figures, and absence of third-party assurance all contribute to a higher compliance risk score. Directly linked to SEBI enforcement and potential delisting risk.

High: Multiple nil/missing mandatory fields Medium: Some gaps in disclosure Low: Complete, assured disclosure
👥
HR Risk
Weight: 10%

Assesses human rights and labour practice risks based on BRSR Principle 5 disclosures. Considers MSME sourcing percentage (supply chain inclusion), presence of human rights due diligence policies, contractor workforce treatment, and value chain disclosures. Low MSME sourcing (below 15%) increases this score due to preferential procurement policy risk.

High: No HR policy, <5% MSME sourcing Medium: Partial HR disclosures Low: Robust HR framework disclosed
🏛️
Governance Risk
Weight: 5%

Evaluates anti-corruption policies, conflict of interest frameworks, BRSR assurance level, and board-level ESG accountability from BRSR Principle 1 and Principle 7. Companies with no disclosed anti-corruption policy or no independent BRSR assurance receive higher governance risk scores. Lowest weight as Indian listed companies have relatively standardised governance frameworks under SEBI LODR.

High: No anti-corruption policy, no assurance Medium: Partial governance disclosures Low: Full governance framework + assurance

4. Dimension Weights

Weights reflect the relative financial materiality of each dimension to Indian regulatory risk and market exposure, not universal ESG importance. Compliance Risk and EPR Exposure carry the highest weight because they represent the most direct and quantifiable financial penalties under Indian law.

Dimension Weight Primary Rationale
Compliance Risk 20% Direct SEBI enforcement exposure; mandatory BRSR Core from FY 2023-24
EPR Exposure 20% Quantifiable penalties under 4 EPR rules; growing CPCB enforcement
GHG Intensity 20% SEBI BRSR Core mandatory; Carbon Credit Trading Scheme (CCTS) exposure
Waste Intensity 15% Linked to EPR obligations and Hazardous Waste Management Rules
Water Intensity 10% Sector-specific; operational risk in water-stressed regions of India
HR Risk 10% MSME sourcing policy risk; BRSR Principle 5 compliance
Governance Risk 5% SEBI LODR baseline governance already mandated for listed entities
Total 100%

The composite EFQ score is calculated as:

EFQ Score = (0.20 × Compliance) + (0.20 × EPR) + (0.20 × GHG) + (0.15 × Waste) + (0.10 × Water) + (0.10 × HR) + (0.05 × Governance)

5. Sector-Adjusted Weight Profiles

The base formula above applies equal 20% weight to GHG Intensity, EPR Exposure, and Compliance Risk across all companies. In practice, ESG financial materiality is highly sector-dependent — a steel plant's dominant exposure is carbon (CCTS, PAT Scheme), while a bank's is governance and HR. Green Curve applies the following sector-adjusted profiles so scores reflect where regulatory penalties are most likely to land for that specific business.

Assignment: Each company is assigned to one of six sector groups based on its BRSR-declared NIC classification and primary business segment. The sector-adjusted formula replaces the universal formula for that company's scoring run. Where a company spans multiple segments, the primary revenue segment determines the profile applied.
Dimension Base Heavy Industry
Steel · Metals · Mining
Cement · Chemicals
Power & Energy
Power Gen · Oil & Gas
Utilities
Financial Services
Banks · NBFC
Insurance · AMC
IT & Software
IT Services · SaaS
Tech
Consumer & FMCG
FMCG · Retail
Food · Textiles
Real Estate & Infra
Realty · Construction
Infrastructure
GHG Intensity 20% 30% ↑ 35% ↑ 10% ↓ 15% ↓ 10% ↓ 20%
EPR Exposure 20% 15% ↓ 8% ↓ 5% ↓ 2% ↓ 28% ↑ 2% ↓
Compliance Risk 20% 18% 20% 30% ↑ 30% ↑ 22% ↑ 25% ↑
Waste Intensity 15% 20% ↑ 15% 5% ↓ 5% ↓ 15% 17% ↑
Water Intensity 10% 10% 15% ↑ 5% ↓ 8% ↓ 5% ↓ 18% ↑
HR Risk 10% 5% ↓ 5% ↓ 20% ↑ 22% ↑ 18% ↑ 8% ↓
Governance Risk 5% 2% ↓ 2% ↓ 25% ↑ 18% ↑ 2% ↓ 10% ↑
Total 100% 100% 100% 100% 100% 100% 100%
⚙️ Heavy Industry

Carbon pricing under the Carbon Credit Trading Scheme (₹600–900/tCO₂e) and PAT Scheme non-compliance are the largest quantifiable financial exposures. Hazardous waste from Schedule I industries amplifies Waste Intensity weight over EPR, which is narrower here than in consumer sectors.

⚡ Power & Energy

Scope 1 emissions define the ESG risk profile — thermal plants account for the majority of India's industrial GHG. Water intensity raised because cooling water withdrawals at thermal stations create a direct operational and regulatory exposure under CPCB consent conditions.

🏦 Financial Services

Negligible direct emissions but high governance exposure — RBI and SEBI dual regulation, board accountability under SEBI LODR, and climate risk embedded in loan books. HR Risk elevated for workforce-intensive operations and POSH compliance obligations.

💻 IT & Software

Low physical footprint, but Compliance and Governance dominate — SEBI BRSR mandatory disclosures, upcoming DPDP Act obligations, and board-level ESG accountability. HR Risk elevated due to talent-intensive workforce, DEI scrutiny, and complex global supply chain labour standards.

🛒 Consumer & FMCG

Highest EPR exposure of any sector group: multi-layer plastic packaging, PET bottles, and extended supply chains create layered obligations under the Plastic Waste Management Rules, Battery Rules, and upcoming packaging EPR targets. HR Risk elevated for supply chain labour conditions.

🏗️ Real Estate & Infra

Construction water consumption and solid waste (concrete, steel, cement) are disproportionately material. Governance weight raised due to elevated related-party transaction risk and project-level accountability gaps consistently observed in sector BRSR filings.

Methodology versioning: Sector weight profiles are versioned with each annual BRSR data update cycle. Any revision to a sector profile is logged in the methodology changelog and the effective date is shown on affected company score cards. Revisions are available on request.

6. Risk Tier Thresholds

Companies are classified into three tiers based on their composite EFQ score. Thresholds are calibrated to the Indian listed company universe — most companies score in the Medium range due to widespread partial disclosures across BRSR mandatory fields.

≥ 6.5 / 10
High Risk
Material financial exposure from ESG compliance gaps. Significant unreported emissions, major EPR obligations unaddressed, or critical BRSR disclosure failures. Warrants immediate attention from management and investors.
4.0 – 6.4 / 10
Medium Risk
Moderate financial exposure. Partial disclosures, some regulatory compliance gaps, or sector-specific exposure to evolving Indian ESG regulations. Requires monitoring and targeted disclosure improvements.
< 4.0 / 10
Low Risk
Limited identified financial exposure from ESG compliance. Comprehensive BRSR disclosures, low environmental intensity, and documented regulatory compliance. Consistent with ESG leadership within the Indian listed universe.

7. Financial Exposure Estimates

The Estimated Compliance Cost Band shown on company profiles (e.g., ₹10–38 crore) is a directional estimate of potential regulatory compliance costs, not an audited figure. It is derived from:

Important: These are indicative ranges only. Actual compliance costs depend on company-specific circumstances, regulatory discretion, and remediation timelines. Do not use these figures for financial reporting, legal proceedings, or investment decisions.

8. Double Materiality Assessment

Following the ISSB IFRS S1/S2 and EU CSRD double materiality framework, each company is assessed on two axes:

Financial Materiality (→)

How ESG risks affect the company's own financial position, earnings, and access to capital. Derived from the composite EFQ score.

Impact Materiality (↑)

How the company's operations affect the environment and society. Derived from absolute GHG, water, and waste figures relative to sector peers — independent of disclosure completeness.

QuadrantFinancial MaterialityImpact MaterialityMeaning
Dual MaterialityHigh (≥5)High (≥5)ESG risks affect both company finances and the environment — highest priority for disclosure and action
Financially MaterialHigh (≥5)Low (<5)Strong regulatory/financial risk but relatively lower absolute environmental impact
Impact MaterialLow (<5)High (≥5)High environmental impact but lower near-term regulatory financial risk
Watch ListLow (<5)Low (<5)Currently lower risk on both axes — monitor for regulatory changes

9. Update Cycle

🔄
Company Scores
Updated annually when new BRSR filings are published (typically June–September for the previous financial year). Scores reflect the most recently available BRSR filing — the financial year is shown on each company profile.
📰
Regulatory Radar
Regulatory notifications, circulars and compliance deadlines are reviewed and updated daily (automated nightly run). Impact scores are assigned based on sector coverage and penalty magnitude.
🏭
EPR Data
CPCB EPR portal public data is checked periodically and EPR exposure scores are updated when new registration data or compliance notices are published.

10. Limitations & Disclaimers

⚠️
Self-Reported Data

All scores are based on data companies have chosen to disclose in their BRSR filings. Companies that disclose less may appear riskier than they are (due to penalising incomplete disclosures), and companies that over-report may appear less risky. We score what is disclosed — not what is true.

⚠️
Not Investment Advice

ESG Financial Quotient scores are analytical outputs for informational purposes only. They do not constitute investment advice, a buy/sell recommendation, or a securities rating. Green Curve is not a SEBI-registered Research Analyst or ESG Rating Provider.

⚠️
AI-Assisted Analysis

Company risk summaries are generated using AI analysis of BRSR data. While grounded in disclosed data, AI-generated summaries may contain inaccuracies or omissions. Always verify findings against the original company BRSR filing.

⚠️
Data Currency

Scores reflect the most recently available BRSR filing, which may be 12–18 months old at any given time. Company circumstances, regulatory compliance, and environmental performance may have changed since the filing date.

⚠️
Coverage Scope

The current dataset covers 155 companies — a subset of India's listed universe. Absence from our database does not imply lower or higher ESG risk. We are working to expand coverage to NIFTY 500.

11. Frequently Asked Questions

Why does a higher score mean higher risk? Shouldn't a better company score higher?

The EFQ is a financial risk score, not an ESG performance rating. It measures how much ESG-related regulatory and financial risk a company is exposed to. A score of 10 means maximum identified risk — similar to how a credit risk score works. Think of it as: the higher the score, the more work the company needs to do to reduce its ESG-related financial exposure.

Why do some companies have identical scores across all dimensions?

When a company's BRSR filing contains nil or missing data across multiple required fields, the scoring algorithm applies a disclosure-penalty score reflecting the regulatory risk of non-disclosure. This can result in identical dimension scores for companies with similar disclosure gaps, even if their actual environmental performance differs.

My company is listed here — can I request a correction?

Yes. If you believe your company's score reflects an error in reading your BRSR filing, please contact us with the specific BRSR page reference and we will review. We are committed to accuracy and will update scores when corrections are warranted.

Is this the same as SEBI's ESG Rating Provider framework?

No. SEBI's ERP framework regulates registered ESG rating agencies that issue formal ESG ratings used for regulatory and investment purposes. Green Curve is not a SEBI-registered ESG Rating Provider. Our scores are research-grade analytical outputs derived from public BRSR data — not formal regulatory ratings.

How is the ESG Financial Quotient different from MSCI, Sustainalytics or other ESG ratings?

Global ESG rating providers use proprietary datasets, surveys, and estimated data across global frameworks. The EFQ is designed specifically for the Indian regulatory environment — it focuses on financial risk from Indian laws (SEBI BRSR, EPR rules, CCTS) and uses only publicly disclosed Indian regulatory data. It is narrower in scope but more directly relevant to India-specific compliance risk.

Can I use this data in my research or reports?

Yes, with attribution. You may cite Green Curve ESG Financial Quotient scores in research, journalism, or analysis with a reference to greencurve.github.io and the data date. You may not reproduce the dataset wholesale or use it for commercial redistribution without written permission.

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