How Do ESG Funds Determine Good Will of a Business?

When you talk about investing your money as an individual, into something big, you usually talk about shares, bonds, property, land or real estate. But when you talk about investment as a company, there are many types of investments that come into the picture. There are the long only funds, long term deposits, investing into a business, mergers, acquisitions, and so on. As your business grows, so does your capability to invest in various types of funds. With bigger businesses,

This is when the ESG funds comes into the picture. ESG funds are the Environmental, Social and Governance funds that a company invests in for the betterment of the internal working of the company. In the environment aspect, it is about whether the company takes care about the environmental factors in their campus while expanding their business. In social aspect, the company is gauged on the basis of their empathy and consideration towards their employees. This could be investing in their better experience at work, giving them good experience and so on. The governance part deals with whether or not the company is following legal practices in carrying out day to day activities.

ESG funds determine the good will of a company. The investors investing in the business judge a company on tis basis as well.

The investment banking companies in India, help the bigger firms in managing these funds as well. It is not always that everyone is aware about investing in these kinds of funds or how to. The investment banking companies do a detailed study about this and help the companies determine the amount to be invested in these funds and what kind of procedures need to be followed. This should not be confused with CSR, as CSR is Corporate Social Responsibility, a program through which the MNCs and other bigger giants give back to the society.