SEBI Set to Issue Guidelines for Accrediting ESG Assessment Providers: Sources

Mumbai, May 21, 2025 — The Securities and Exchange Board of India (SEBI) is expected to soon unveil comprehensive guidelines to accredit Environmental, Social, and Governance (ESG) assessment providers, according to people familiar with the matter.

The initiative aims to bolster the enforcement of ESG disclosure norms amid growing scrutiny of sustainability practices, especially after recent lapses involving several high-profile new-age companies.

Sources indicate that the National Accreditation Board for Certification Bodies (NABCB) is likely to be tasked with the responsibility of accrediting ESG rating agencies and assessment entities. This move is seen as part of SEBI’s broader regulatory framework to ensure that ESG disclosures by listed entities are credible, standardized, and verifiable.

The regulator has in recent years intensified its focus on ESG reporting, mandating top listed companies to publish Business Responsibility and Sustainability Reports (BRSR). However, concerns have emerged over inconsistencies in ESG assessments and the lack of oversight over the entities conducting these evaluations.

“Formal accreditation will bring greater transparency and accountability to ESG assessments, which are increasingly influencing investor decisions,” said a person familiar with the development.

The upcoming guidelines are expected to lay out eligibility criteria, assessment protocols, and ongoing compliance standards for ESG assessors operating in India.

The move is likely to be welcomed by institutional investors and global funds who rely on robust ESG frameworks to align with responsible investment principles.