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By now, most of us have heard the term ESG funds in India somewhere or the other. It could be in your regular finance new channel, or it could be in the newspapers of a finance digest or from your asset management company.
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The meaning of ESG funds and its working www.avendus.com/india
What is ESG? By now, most of us have heard the term ESG funds in India somewhere or the other. It could be in your regular finance new channel, or it could be in the newspapers of a finance digest or from your asset management company. Wherever you might have heard it from, what does ESG actually mean? Well, to put it in an easier manner, ESG funds are those where the investment and the equities are done in accordance with the environmental, corporate, and social funds in place. All the investments that a particular business makes needs to do it with these factors in mind. www.avendus.com/india
Environmental When we talk about the environmental factor in the ESG funds, we mean that the said company needs to closely monitor the waste, pollution and energy that is being used by the company in their day to day activities. It tells us whether or not the company is taking sustainable measures when expanding or thinking to expand and the way they are using the natural resources available to them. www.avendus.com/india
Social When it comes to the social aspects in the ESG funds in India or any where in the world, there is a lot more than just the company’s relations with its employees. The social factor talks about the satisfaction level of the people working for the particular firm, the actions or the steps tat the company is taking to make their employees work happily and the relations of the business owners with their suppliers and vendors too. The social factors point at the measures taken by the company towards the betterment of the society. www.avendus.com/india
Governance Wherever we talk about governance, it has to do a lot with legality. A company’s legal practices are judged and the basis on which the company bases its decisions overall. It is neatly observed whether or not the company it carrying out all their activities in a transparent way, especially in case of accounts and the taxes that they pay. They are also judged on how they handle conflict of interest and whether or not they are neutral. www.avendus.com/india
How does an asset management company help? To ensure that a sufficient amount of funds are being directed for the specific above mentioned factors, and also whether or not the company has a good holding in this, the asset management company plays a huge role and a huge factor. The top asset management companies in India and around the world work towards ensuring that all this happens properly and the company has enough funds to direct for all this. www.avendus.com/india
Thank You www.avendus.com/india