Bengaluru, May 5, 2025: In a major endorsement of its commitment to sustainable and inclusive finance, Muthoot Microfin Limited has secured an outstanding ESG score of 72.2 and has been rated CareEdge-ESG 1, the highest rating tier by CARE ESG Ratings Limited – SEBI licensed ESG Rating Provider. This puts Muthoot Microfin among India’s ESG leaders in the financial services sector—setting benchmarks for ethical governance, community-centric finance, and responsible growth. Muthoot Microfin has outperformed industry medians across ESG Pillars. The rating has placed the company in the ‘Leadership’ position in managing ESG Risk through best-in-class disclosures, policies, and performance. It is also the highest ever ESG rating score given by CARE for this industry.

The rating recognises Muthoot Microfin’s leadership in embedding environmental, social, and governance excellence into its core operations, from empowering women borrowers in rural India to pioneering climate risk integration and inclusive workplace practices.

Key Highlights of Muthoot Microfin’s ESG Leadership:

• Governance Score: 78.9 (industry median 64.5):
  Backed by a diverse and independent board, strong investor relations, ISO 27000-certified data protection, and board-approved policies on ethics, anti-bribery, and whistleblowing.
• Social Score: 72.1 (industry median 56.5):
• • 100% women borrower base
  • Industry-best grievance redressal mechanism with a 95% resolution rate.
  • Equal pay (1:1 male-female pay ratio) and six consecutive Great Place to Work certifications
• Environmental Performance Score: 54.6 (top quartile):
• • Rooftop solar at 50 branches; INR 27.5 crore disbursed in green loans
  • Net Zero emissions target by 2040—well ahead of industry norms
  • ESG Risk Register and Climate Risk Framework in place

Muthoot Microfin upholds advanced data governance with no breaches in FY24, full alignment with the Digital Personal Data Protection Act, and robust access protocols.

Inclusive Growth in Action

Muthoot Microfin’s “Pink Hiring” and “HER Initiative” reflect its intent to drive gender equity. The company also offers EV acquisition support and subsidised accommodation, helping reduce attrition and create a resilient workforce.

“At Muthoot Microfin, ESG isn’t an afterthought—it is the foundation of how we deliver impact at scale. This top-tier ESG rating reflects our dedication to empowering communities, building resilience, and ensuring that our growth uplifts lives meaningfully,” said Sadaf Sayeed, CEO, Muthoot Microfin Limited. He added, “When an organisation prioritises the environment, uplifts communities, and upholds strong ethics, it lays the foundation for long-term operational success and sustainable growth.”

The CareEdge-ESG 1 rating is based on more than 1,500 data points across governance, social impact, and climate risk integration. Muthoot Microfin’s score outperformed the industry median of 56.8 across all three pillars. The ESG rating reflects Muthoot Microfin’s clear strategic direction in sustainability, responsible lending, and ethical governance—positioning it as a trusted partner for ESG-conscious investors and stakeholders.

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