Coal India maintains 'moderate' ESG rating despite emissions, board penalties

Coal India Limited, a state-owned coal mining corporation and the world's largest coal producer, announced today it has received an ESG rating of "Moderate" from NSE Sustainability Ratings & Analytics Ltd for fiscal year 2025. This rating, received on December 9, 2025, remains consistent with its FY2024 rating, also "Moderate," both achieving an ESG Rating of 58. The company's environmental score stands at 54, the social score at 54, and the governance score at 66.

The environmental assessment highlights that Coal India's greenhouse gas emissions from direct operations and energy consumption exceed industry averages, and waste generation per unit of production is high, increasing by 43% compared to the previous year. However, water intensity performance is low, decreasing by 50%. On the social front, the lost time incident rate for workers is low, showing a 29% decrease from the previous year, and adequate accident insurance is provided for permanent workers.

In terms of governance, the company's board composition shows a stronger presence of independent directors than required, and it has fulfilled the regulatory requirement for a sufficient number of women on its board. The audit and risk management committees also demonstrate better independent director representation compared to statutory guidelines and required thresholds, respectively. Separately, Coal India faced multiple penalties from stock exchanges in May, August, and November 2025, each for Rs. 5,42,800 (inclusive of GST), due to non-compliance with board composition requirements.