While the ESG funds might be a relatively new concept in India, it actually is slowly catching up with the different financial advisory companies such as asset and liability management firm, and investment banking companies in India. But one might wonder what exactly the ESG funds are and rightly so. ESG is the short form for Environment, Social and Governance, the three key areas and factors that one needs to keep in mind when expanding their business. A way of giving it back to the factors that contribute to your business growth.
The concept of ESG funds is way different
from the long-only
funds that you hear about. The ESG funds are more relevant when it comes to
bigger corporations of business and it has become a criteria for investors to
judge whether they should be investing in the said big business or not. The
factors include how much they actually are taking care of the environmental
issues, whether the employee happiness is taken care of and supported and of
course, whether the governance is done keeping in mind all the law and whether
all the conflicts that arise are being taken care of the way they should be.
When we talk about the social factors, it
also includes the kind of relationship that is maintained with the suppliers,
traders, the vendors as well. Here, the happiness quotient of the employees is
seen and based on which, we get a fair idea about whether the investors would
be ready to invest.
When choosing any financial advisory
services, like any of the asset and liability management firms, we usually
exercise caution. But when it comes to handling the business as a whole, it
actually needs to be properly studied, researched and only then can it really
be hired for their future services for our business. You can look up various
different articles online for the same.
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