GAIL India Maintains 'Aspiring' ESG Rating of 66 with Detailed Performance Analysis

GAIL (India) Limited , the state-owned natural gas processing and distribution giant, has received an updated Environmental, Social, and Governance (ESG) rating assessment from NSE Sustainability Ratings Analytics. The company maintains its ESG rating of 66, categorized as 'Aspiring', with the latest review conducted on December 8, 2025.

ESG Performance Breakdown

The comprehensive ESG assessment reveals GAIL's performance across three key pillars:

ESG Pillar:	Score	Performance Highlights
Environment:	56	Challenges in emissions and renewable energy adoption
Social:	76	Strong worker safety performance
Governance:	71	Robust compliance with governance standards
Overall ESG Rating:	66	'Aspiring' category

Environmental Performance Challenges

GAIL faces several environmental sustainability challenges that impact its environmental score of 56:

Environmental Metric:	Performance Status
Greenhouse Gas Emissions:	Above industry averages from direct operations
Scope 3 Emissions:	13% increase compared to previous year
Water Intensity:	12% decrease compared to previous year
Energy Intensity:	Above industry benchmarks
Renewable Energy Adoption:	34% increase but still lagging behind peers
Waste Management:	50% increase in waste intensity
Waste Recycling:	11% increase but below peer performance

Social Performance Strengths

The company demonstrates strong social performance with a score of 76, driven by several positive factors:

Social Metric:	Performance Details
Lost Time Incident Rate:	90% decrease compared to previous year
Worker Fatalities:	1 fatality reported in assessment year
Health Insurance Coverage:	At par with industry norms for permanent employees
Accident Insurance:	Adequate coverage for permanent workers
Employee Grievances:	28% decrease compared to previous year
Employee Turnover:	9% increase but below industry average
Customer Complaints:	Lower than industry benchmarks

Governance Excellence

GAIL's governance score of 71 reflects strong compliance across multiple areas:

Governance Area:	Compliance Status
Board Composition:	Meets independent director requirements
Women Directors:	Fulfills regulatory requirements
Nomination Committee:	Above compliance requirements for independence
Audit Committee:	Better than statutory guidelines
Risk Management Committee:	Meets regulatory threshold
CSR Committee:	Above regulatory requirements

Core ESG Rating Assessment

NSE Sustainability also provided a Core ESG Rating based on third-party assured data from BRSR Core disclosures:

Core Rating Component:	Score
Core ESG Rating:	43
Core Environment Score:	46
Core Social Score:	51
Core Governance Score:	34

This Core ESG Rating emphasizes transparency and reliability by utilizing verified data points critical for assessing sustainability profiles.

Financial Performance Context

Alongside its ESG efforts, GAIL continues to demonstrate strong financial performance:

Financial Metric:	Value (₹ Crore)	YoY Change
Revenue:	143,171.10	+6.66%
Net Profit:	12,462.90	+25.85%
EBITDA:	16,699.50	+9.12%
EPS (₹):	18.93	+25.70%

The company's robust financial foundation provides resources to address ESG challenges, particularly in environmental sustainability where improvement opportunities exist. As GAIL continues to balance financial growth with ESG responsibilities, the focus remains on enhancing environmental performance while maintaining strong social and governance practices.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.25%	+2.71%	+0.13%	-7.37%	-8.09%	+113.08%

GAIL (India) Limited , the country's largest natural gas transmission company, has received approval for a significant pipeline tariff increase from the Petroleum and Natural Gas Regulatory Board (PNGRB). This development marks a crucial change in the company's pricing structure, potentially impacting its revenue stream and operational dynamics.

Tariff Increase Details

The PNGRB has greenlit an increase in GAIL's pipeline tariff, raising it from ₹58.60 to ₹65.69 per Million British Thermal Units (MMBTU). This adjustment represents a 12.1% hike from the previous tariff rate.

Aspect	Previous Tariff	Approved Tariff	Percentage Increase
Pipeline Tariff (₹/MMBTU)	58.60	65.69	12.1%

Regulatory Perspective

It's worth noting that while the PNGRB has approved an increase, the new tariff falls short of GAIL's initial request. The company had sought a higher rate of ₹78 per MMBTU, indicating that the regulatory body has taken a balanced approach in its decision-making process.

Tariff Rates	Amount (₹/MMBTU)
Previous Tariff	58.60
GAIL's Requested Tariff	78.00
PNGRB Approved Tariff	65.69

This decision by the PNGRB reflects its role in balancing the interests of both the service provider (GAIL) and the consumers. The approved tariff increase aims to support GAIL's operational costs while keeping the price point below the company's requested level.

Implications for GAIL and the Market

The tariff hike is expected to have several implications:

Revenue Impact: The 12.1% increase in pipeline tariff could potentially boost GAIL's revenue from its gas transmission business.
Operational Sustainability: The higher tariff may help GAIL better manage its operational costs in the face of rising expenses.
Market Dynamics: This change could influence the pricing structure in the natural gas market, potentially affecting both suppliers and consumers.

As the largest natural gas transmission company in India, GAIL's tariff adjustments can have far-reaching effects on the energy sector. Stakeholders across the natural gas value chain will likely be monitoring how this tariff increase impacts the market dynamics and GAIL's financial performance in the coming quarters.

While the approved tariff increase is significant, it's important to note that it's lower than what GAIL had initially requested. This suggests that the PNGRB is striving to maintain a balance between ensuring the financial health of key players like GAIL and preventing excessive cost burdens on consumers.

As the implementation of this new tariff structure unfolds, industry observers will be keen to see how it influences GAIL's operational strategies and the broader natural gas market in India.