How Does ESG Funds Increase A Business’s Credibility?

ESG funds in India surely caught a lot of attention when they were first introduced to the mass investment bankers in the country. Even though the broader explanation does make it look like it is a form of CSR (Corporate Social Responsibility), it wasn’t. ESG funds are the environmental social and government funds that a big corporate invests in to show their credibility to their investors. ESG funds are the portfolio of bonds and equities for which the above three mentioned factors have been integrated for the process. In short, it is like a checklist to see whether, the process of investment considers and integrates the environment, social and governance factors or not.

Usually, an investment banking company that is hired by the large corporate advices their client on the same. In a way, ESG funds are the funds that determine the corporate behaviour of a company and evaluates whether the company’s future financial performance will be up to the mark or not. ESG is also important because it helps the investors to determine whether they should invest in the company or not. For existing investors, it is like a report card to decide continuation of their corporate relationship. The investment banking companies also help the corporates with the long short funds in India.

ESG funds also form the credibility of the company. For this, you need an investment banking company that it true to its words and dedicated only for the betterment of their clients. Therefore, when you choose an investment banking company for your cig firm, make sure that this firm has a credible board and the returns you will get on paying them would reap your business big benefits in the future. This is also a form of smart investment after all.