Oil and Natural Gas Corporation Ltd has publicly disputed an unsolicited ESG rating issued by CRISIL ESG Ratings & Analytics Ltd. ONGC said it was neither engaged nor consulted for the report and argued that the assigned scores do not accurately reflect its sustainability initiatives or governance standards. The company also highlighted what it described as factual errors regarding independent director attendance at board meetings.
ONGC Challenges Unsolicited CRISIL ESG Rating Report
CRISIL ESG Score: 57
CRISIL Core ESG Score: 65
Reader Takeaway: ESG ratings face challenge; investors should monitor any future revisions or clarifications.
What just happened
Oil and Natural Gas Corporation Ltd informed the stock exchanges that it received an unsolicited ESG Rating Report from CRISIL ESG Ratings & Analytics Ltd.
The company stated that it neither appointed the rating agency nor participated in finalizing the report. According to ONGC, the assessment was prepared without consultation with the company.
Why this matters
ONGC said it disagrees with the ESG scores assigned in the report and believes they do not accurately represent its environmental initiatives, governance framework or sustainability disclosures.
The company pointed investors to its Business Responsibility and Sustainability Report, stating that its decarbonization initiatives and governance practices have been comprehensively disclosed. ONGC also reiterated its target of achieving net-zero Scope 1 and Scope 2 operational emissions by 2038.
What changes now
The filing does not alter ONGC's financial performance or business operations.
Instead, it serves as a formal clarification to investors regarding the company's position on an external ESG assessment that it considers inaccurate.
ONGC also disputed statements relating to board governance. The company said the report incorrectly indicated attendance concerns involving independent directors.
According to ONGC, independent directors recorded 100% attendance at Board and Board Level Committee meetings, except for one leave of absence at a committee meeting. The company calculated the effective attendance rate at approximately 92.30%.
Risks to watch
- Whether CRISIL revises or clarifies the ESG assessment.
- Future ESG evaluations by external agencies.
- Progress toward ONGC's stated net-zero operational emissions target for 2038.
- Continued sustainability disclosures through future BRSR filings.
What to track next
Investors should monitor any response from the rating agency, subsequent ESG assessments and ONGC's progress on its environmental commitments and governance disclosures.