ONGC just got its 2024 climate rating—see what it means for sustainability

Oil and Natural Gas Corporation Limited (ONGC) has secured a B- rating in the 2024 CDP climate score, marking a significant step in its journey toward enhanced corporate sustainability, ESG transparency, and climate risk management. This rating reflects ONGC’s ongoing commitment to climate disclosure practices and its alignment with international sustainability benchmarks. As India’s largest energy company, ONGC continues to refine its carbon footprint management strategies, ensuring its operations support the nation’s broader transition to a sustainable energy ecosystem.

CDP, a leading global non-profit specializing in environmental impact assessments and corporate climate reporting, evaluates companies based on their climate data disclosure, carbon emission reduction strategies, and sustainability performance. ONGC’s B- rating positions it among thousands of corporations leveraging climate risk assessment and environmental accountability as part of their long-term business strategies.

How does ONGC’s CDP rating impact its ESG strategy?

The B- climate rating reinforces ONGC’s focus on sustainability-driven corporate governance and its efforts to integrate climate risk assessment into strategic planning. Climate-related data offers valuable insights into the economic impact of extreme weather events, the effectiveness of low-carbon business models, and the role of clean energy innovation in mitigating environmental challenges. With sustainability at the core of its corporate vision, ONGC is expanding its initiatives in carbon disclosure and net-zero transition planning.

The B- climate rating reflects ONGC’s commitment to aligning with global best practices in ESG disclosure. Companies demonstrating robust climate transparency and corporate sustainability initiatives tend to build stronger investor confidence, achieve long-term resilience, and outperform market peers in regulatory compliance. By strengthening its climate reporting frameworks and environmental accountability, ONGC is setting a precedent for climate risk management in India’s energy sector.

Why is climate transparency critical for ONGC’s business growth?

Environmental, social, and governance (ESG) compliance is no longer just a regulatory requirement but a key driver of corporate growth. Companies that embrace climate risk disclosure, greenhouse gas emission tracking, and carbon reduction strategies are better positioned to navigate evolving industry standards and regulatory frameworks. ONGC’s commitment to sustainability reporting and carbon footprint management ensures it remains competitive in a global energy market increasingly focused on low-carbon transitions and renewable energy integration.

By participating in CDP’s independent environmental disclosure system, ONGC is reinforcing its role in climate transparency and corporate environmental responsibility. This recognition signals to stakeholders, investors, and regulatory agencies that ONGC is prioritizing data-driven sustainability initiatives to mitigate the risks associated with climate change and carbon-intensive operations.

How will ONGC’s sustainability data be used?

ONGC’s climate disclosure data will be shared with CDP Capital Market Signatories, regulatory bodies, and strategic partners to ensure maximum transparency and industry-wide collaboration. Additionally, the company’s core climate impact data will be made available through the Net-Zero Data Public Utility (NZDPU), a platform that facilitates global sustainability insights and industry benchmarking.

The integration of climate disclosure practices into financial and operational decision-making is a growing trend among major energy corporations. ONGC’s decision to align with data-driven environmental risk assessments underscores its commitment to ESG accountability and long-term carbon neutrality goals.

What are the next steps for ONGC’s sustainability strategy?

Looking ahead, CDP is set to enhance its climate reporting framework in 2025, focusing on providing greater stability for corporate climate disclosure while minimizing methodological changes. This evolution will enable companies like ONGC to build upon their existing sustainability frameworks and ESG-driven business models, ensuring a seamless transition toward climate-resilient corporate strategies.

ONGC remains dedicated to integrating sustainability into its business operations, ensuring that climate risk factors are incorporated into its long-term investment strategies and energy transition plans. As the energy sector moves toward low-carbon innovations and renewable energy investments, ONGC continues to position itself as a leader in climate accountability and corporate environmental responsibility.

How does CDP influence global sustainability efforts?

CDP, formerly known as the Carbon Disclosure Project, operates the world’s most comprehensive independent environmental disclosure system, providing data-driven insights that help organizations manage their carbon footprints, climate risks, and sustainability performance. With a presence in the United Kingdom, India, Japan, Germany, Brazil, China, and the United States, CDP plays a pivotal role in shaping corporate climate accountability and ESG-driven investment decisions.

By aligning with CDP’s climate transparency initiatives, ONGC is reinforcing its commitment to global best practices in climate risk mitigation, sustainable energy management, and ESG governance. This marks a crucial step in balancing energy security with climate responsibility, ensuring that ONGC remains at the forefront of India’s transition to a greener and more sustainable future.