The Growing Popularity of ESG Funds in India

ESG funds in India is a rapidly growing concept. But what is it about them that is garnering so much attention from investors and investment banks worldwide? This is a concept which almost every fund and asset manager is talking about and advising their client on the same. These are nothing like the CSR or the hedge funds and are more about internal investment from the company. It is a theory and a concept widely spread in developed markets. ESG stands for Environmental Social Governance are three pillar that determine the sustainability and ethical impact of a particular investment in a company. 

The ESG funds is what actually determines that sustainability of any company’s project and it automatically eliminates those companies from the list that who have poor records in terms of controlling pollution from their premise, do not have a good score on ethical human practices and also the ones that do not adhere with the rules and regulations laid down by the particular government of the country. It is all about how much care a company is taking of the environmental, social and governance factors when making any kind of profitable investment for the business.

There is a rise in popularity of ESG funds in India among the investors who want to make an impression of contributing in lowering the global warming and pollution, have an impact in contributing to the human development especially within their firm, and are not indulged in any kind of malpractices when it comes to sticking to rules and regulations set by the governing body. these type of funds in a way help to keep the functioning of various large sized companies in check and encourage other HNIs and firms in making a good and positive impact on those firms. The result will surely be worth for the world and a whole.