New Delhi: Environment, Society, Governance (ESG) issues Sustainable fund In India, it raised Rs 368.6 billion in 2020-21, an increase of 76% from the previous year.
Moreover, the COVID-19- led crisis has only accelerated the demand for sustainable investing. Sustainable or ESG (environmental, social, and governance) funds in India witnessed an inflow of Rs 3,686 crore in just-concluded fiscal as compared with Rs 2,094 crore in 2019-20, according to Morningstar data. Such funds offer exposure to themes such as renewable energy, low carbon, green transport and environmental protection.
Morningstar India Director and Manager (Research) Kaustubh Belapurkar said, "While still early days in India from an ESG funds perspective, the launch of ESG funds has increased investor awareness significantly. Many domestic asset domestic managers are already incorporating ESG principles in their overall investing framework."
He further said corporate India is also increasingly acknowledging the need to effectively manage the ESG factors as means to mitigate business risks as well as attract long-term capital from investors who are increasingly considering ESG factors to make investment decisions.
In addition, domestic regulations are also calling for greater disclosures from companies with respect to their sustainability practices, Belapurkar said. Winvesta co-founder Prateek Jain said ESG conscious investing is just starting in India and investors are paying more attention on how socially responsible their portfolio is.