REC Limited, a key Maharatna CPSE under the Ministry of Power and a systemically important NBFC, has achieved recognition for its ESG performance. The company was ranked among the top-performing financial institutions in India in the latest NSE ESG Ratings.
REC secured an ESG score of 80, placing it in the leadership band for its peer group. This result reaffirms the company’s strong governance, responsible financing practices, and sustainability-led growth strategy.
The rating reflects REC’s structured, enterprise-wide integration of Environmental, Social, and Governance (ESG) considerations into its business strategy, risk management, and operations. Over the past three years the company has aligned ESG with evolving national and global disclosure standards. The company’s performance in the NSE ESG Ratings is underpinned by a series of Board-led strategic initiatives, starting with the adoption of REC’s inaugural ESG Policy, and its subsequent operationalization across all business units.
Commenting on the achievement, Jitendra Srivastava, Chairman & Managing Director, REC Limited, said, “This leadership position in the NSE ESG Ratings validates REC’s strategic direction and sustained focus on responsible growth. From the formulation of our ESG Policy and Net-Zero planning, to enhanced disclosures under the GRI framework and BRSR, we are embedding sustainability into every facet of our business. This recognition underscores our commitment to supporting the Government of India’s Panchamrit goals and energy transition agenda, while delivering long-term value to our stakeholders.”
Key ESG drivers and initiatives
Strategic ESG governance and benchmarking: REC has institutionalised an ESG governance framework under Board oversight, systematically mapping material ESG issues across operations and financed activities. The company benchmarks its practices against leading global standards and engages with international ESG and climate disclosure platforms such as CDP, S&P Global Corporate Sustainability Assessment (CSA) and MSCI ESG Ratings, thereby aligning with capital-market expectations and global best practices.
Net-zero roadmap development: In line with India’s 2070 net-zero commitment and the Government of India’s Panchamrit targets, REC is working towards a detailed Net-Zero transition pathway for its own operations, including interim milestones, science-based targets for emissions reduction (Scope 1 and 2, and progressive coverage of material Scope 3 categories) and an enhanced focus on green and climate-aligned lending.
Operational ESG excellence: The Corporate Office has achieved 100% green power usage and a zero-discharge building, contributing to reduced operational carbon and water footprints. The office has been awarded the GRIHA 5-star rating, one of the highest green building certifications in India. The company is progressively electrifying its major office vehicle fleet through adoption of electric vehicles (EVs), reinforcing its commitment to low-carbon operations.
Human capital, ethics and responsible conduct: REC has strengthened HR policies and employee well-being measures, with structured programmes on diversity, equity and inclusion, health and safety, and ethical business conduct. Mandatory training modules now cover Human Rights, Ethics, Health & Safety, Cyber Security and the Ministry of Corporate Affairs’ National Guidelines on Responsible Business Conduct (NGRBC), enhancing organisational awareness and compliance across all levels.
Enhanced disclosures and transparency: The company has significantly enhanced its Business Responsibility and Sustainability Report (BRSR) disclosures in line with SEBI requirements and leading practices in the Indian financial sector. REC has also published its second GRI-referenced ESG Report for FY 2024–25, aligned to the Global Reporting Initiative (GRI) Standards, thereby improving transparency for investors, lenders, rating agencies and other stakeholders.
Leadership commitment and ESG culture: REC’s senior management and Board have consistently championed ESG integration as a strategic priority. This has fostered a strong internal culture of accountability, risk-aware decision-making and long-term value creation, particularly in relation to energy transition, sustainable infrastructure and social impact.
