ESG Is Becoming Essential To Every Investment Strategy.


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Uploaded on Aug 19, 2022

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ESG Is Becoming Essential To Every Investment Strategy.

ESG IS BECOMING ESSENTIAL TO EVERY INVESTMENT STRATEGY WHAT IS ESG INVESTING? Environment Social And Governance or ESG is a form of sustainable investing that measures the impact of a company’s ethical contribution to its stakeholders. SOURCE: economictimes.indiatimes.com ABOUT ESG INVESTING? ESG investing is based on the idea that only pressure from large investors can force the corporate world to behave responsibly from a social, environmental and governance perspective. SOURCE: economictimes.indiatimes.com USE OF CLEAN ENERGY Environment refers to the use of clean energy, waste management, and conservation of natural resources. It includes protection of animals. Companies that follow energy harvesting by natural means in development of its products, leads to safety and preservation of our natural resources. SOURCE: economictimes.indiatimes.com SOCIAL CRITERIA Social criteria refers to business relationships. It includes corporate social responsibility and what a company gives back to society from its earnings and profitability. It refers to protection of human capital, human resource rights and community standards and favorable labour policies by company management towards the workforce. SOURCE: economictimes.indiatimes.com PARAMETERS Some of the parameters considered in ESG Investing are resilience, resource utilisation, business ethics, human capital and occupational health and safety, land and biodiversity, product governance. SOURCE: economictimes.indiatimes.com SUSTAINABLE INVESTING Globally about $2.96 trillion has been invested in funds that are managed with an ESG focus, according to Morningstar. In India though, the concept is yet nascent. According to a Morgan Stanley survey conducted in 2019, 85% of retail investors are interested in sustainable investing. SOURCE: economictimes.indiatimes.com ESG IN INDIA The Nifty 100 ESG Index, was designed to reflect the performance of companies within the Nifty 100 index based on the ESG score. It has been seen that the Nifty 100 ESG Index has outperformed its parent index Nifty 100 across various 1,3 and year timeframes. SOURCE: economictimes.indiatimes.com BENEFITS OF ESG INVESTING Sustainable was once considered for a niche set of investors who wanted to align their investment goals to their personal values and beliefs. By following the ESG method of corporate functioning; companies are more inclined to shareholder interest. SOURCE: economictimes.indiatimes.com ASPECTS OF KNOWLEDGE CAPITAL Aspects of Knowledge Capital, Corporate Governance and being mindful of our resources is a growing interest to protect our beautiful planet earth from extinction. SOURCE: economictimes.indiatimes.com THANK YOU