IiAS Sustain – Fund ESG Relative Ratings
Value and Values
Overview
With thousands of mutual funds and ETFs available, how do you ensure your investments deliver financial value and alignment with your core values?
IiAS Sustain's ESG Fund Relative Ratings (IFR) provide insights on funds by scrutinising the environmental, social, and governance practices of their underlying portfolios to deliver a clear, comparative benchmark for relative fund rankings.
IFR provides insights over funds through scrutiny of the environmental, social, and governance practices of their underlying portfolios with the objective of offering a relative ESG ranking of the fund.
How It Works
Company ESG Ratings
Each company held within a fund is assigned an individual ESG rating based on defined environmental, social, and governance parameters.
Weighted Aggregation
Company-level ratings are aggregated at the fund level, weighted by the fund's shareholding in each company, so larger exposures have a proportionately higher impact.
Relative Ranking
Funds are ranked relative to peers. A fund receives an IFR rating only when more than 80% of its AUM is invested in IiAS-rated companies, ensuring credible coverage.
Coverage threshold: IiAS Sustain assigns a fund-level ESG rating only when more than 80% of the fund's assets under management (AUM) are invested in companies that have been rated by IiAS, providing investors with a credible and representative assessment of the fund's ESG profile.
IFR Rating Scale
Funds are assigned a relative ESG rating based on their percentile rank among all IiAS-covered funds. The rating reflects how a fund compares to its peers, not an absolute ESG score.
| ESG Rating | Category | Percentile | Definition |
|---|---|---|---|
5L | Leader | 90–100 | A Steward. Superior alignment with strong ESG practices. |
4L | Strong | 80–90 | High quality, strong choice for ESG-conscious investors. |
3L | Good | 70–80 | Dependable underlying portfolio with consistent ESG practices. |
2L | Safe | 60–70 | Reliable options with moderate ESG strengths. |
1L | Average | 50–60 | Neutral; monitor for ESG improvements over time. |
NR | Not Rated | — | Insufficient coverage to assign a relative ESG rating. |
Benefits
- Track your portfolio beyond just financial numbers
- Track SEBI-aligned stewardship practices
- Peer benchmarking for smarter fund selection
- Transparent insights amid evolving regulations