ESG funds in India is still a newer concept and slowly catching up with the investment banks, wealth management firms and the investors as well. But what exactly are ESG funds? ESG funds are those funds that let the investors judge the corporations or business that they may want to invest in on the basis of the performance of the corporations and also on how they deal with environmental, social and governance issues or how they address them. ESG funds India, although a newer concept is slowly making its way into the world of finance. ESG funds are especially important for bigger corporations that have a big employee size and a chain of clients. Also, when you explore deeper, you will see what the significance of each of these factors of governance, social and environmental ones is. In the environmental perspective, the investors like to see what the firm does to contribute to the conservation and the sustenance of the environment. For example, if the business deals with a lot of chemicals, then it is ascertained what the company does to dispose of the chemical waste. Or how much they contribute to the goodness of the environment, or whether or not what they do directly affect the eco-system directly or not. The social factors look into the checking the relation that the business has with the suppliers, traders and most importantly, how happy their employees are with the company they are working for. And lastly, the governance factor, the potential investors would like to know if the company follows reliable and transparent accounting practices and methods and also whether or not the shareholders are given a chance and a say in voting on important issues. Here, they also see how they deal with major conflict of interests withing the firm and their business.
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