ESG funds in India is a comparatively new concept. In this article, we shall discuss about ESG funds and its applicability in your business. Investing in ESG funds is also known as responsible investing. If we are to look closely, ESG funds or the responsible investing actually dates back to the time since investment concept actually came into the picture, in the 18th century. Back then, there were clear guidelines about the rules and the kind of investment that were to be done in a company or a business. Back then, the responsible or social investment also included investment in a wide range of religious groups. However, the more formal form of investment banking and responsible investment came into the picture only in the 1960s, when the mutual industry was spreading quite fast across the world. This started gaining pace when questions about public welfare, civil right movement and social issues of the present times started to gain light. However, it wasn’t until around the 1970s, that pressure had started to build on the corporates by the stake holder to invest in the betterment of the society and for the world. Today, if you consult any asset management companies in India, they are sure to enlighten you about the importance of responsible investing and what positive effects it can have on the business. For example, in the 70s and 80s fund managers were advised to not invest in any company of South Africa as a show of condemn regarding the apartheidism that South Africa was going through back then. Also, a lot of light was thrown since the late 80s on the importance of sustainable growth in business, keeping in mind the threat of climate change and environmental factors that effect all of us in some way or the other.
No comments:
Post a Comment